The short version: in the UAE, VAT is 5%. Show customers prices that include it, put your TRN on receipts and invoices if you are VAT-registered, and set the rate once in your POS so every sale is taxed the same way.
This guide is general information, not tax advice. Confirm your obligations with the Federal Tax Authority or your accountant.
The 5% basics for a wash
Car washing, detailing, ceramic coating and the retail products you sell are generally standard-rated at 5%. Whether you must register for VAT depends on your taxable turnover against the FTA thresholds; most established washes and studios are registered.
Showing prices: inclusive, always
UAE customers expect to see the price they will pay. That means your menu board, your online store and your POS buttons should show VAT-inclusive prices:
| Item | Price shown | VAT inside (5/105) | Net |
|---|---|---|---|
| Deluxe hand wash | AED 55 | AED 2.62 | AED 52.38 |
| Interior add-on | AED 45 | AED 2.14 | AED 42.86 |
Example prices only.
In the POS, enter the price inclusive and attach the 5% tax; the receipt shows the VAT part automatically.
Receipts and tax invoices
If you are VAT-registered, your receipts and invoices need to carry the details the FTA requires — typically your business name and address, your TRN, the date, what was supplied and the VAT amount. Add your TRN to the receipt layout once, and every receipt carries it. Corporate and fleet customers often need a full tax invoice for their own VAT claims, so make sure your invoice layout is complete.
Bilingual receipts (Arabic and English) are common and appreciated by customers.
Deposits, packages and fleets
- Detailing deposits: an advance payment for a ceramic job can create a VAT point when it is received. Decide with your accountant whether to issue a tax invoice for the deposit and the balance separately.
- Prepaid packages and monthly plans: record them consistently — the same VAT treatment every month.
- Fleet contracts: invoice monthly with VAT shown, so the fleet’s finance team can reclaim it.
Discounts and promotions
A discount reduces the VAT-inclusive price, so VAT is calculated on the discounted amount. Set promotions in the POS so the receipt shows the final price and its VAT, rather than adjusting totals by hand.
Common mistakes
- Menu prices that exclude VAT, then a surprise at the counter.
- Missing TRN on corporate invoices.
- Manually typed totals that do not match the VAT report.
- Treating deposits differently from month to month.
Where GetCarWashPOS fits
GetCarWashPOS prices its own plans in AED with VAT included, lets you enter your wash prices VAT-inclusive with a 5% tax group, prints your TRN and Arabic/English receipts, and handles deposits and fleet statements. See the UAE page, Dubai and the help article on setting up tax.