VAT, or Value Added Tax, was introduced in the UAE in 2018 and is currently charged at a rate of 5% on most goods and services. While charities are traditionally associated with non-profit activities, their operations in the UAE are not automatically exempt from VAT. When charities engage in business activities—such as selling goods or services for a fee, they may be required to register for VAT, charge VAT on taxable supplies, and adhere to standard compliance obligations, including filing VAT returns and maintaining proper records.