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VAT Services in Dubai

VAT rules can be complex and the implications are not always considered. Implementation of VAT needs careful planning for its success. Our dedicated VAT team will help you consider every stage of the implementation process.

The United Arab Emirates introduced a new form of indirect tax called Value Added Tax (VAT) on 1st January 2018 with a rate of 5 percent on goods & services. The VAT policy assumed by the GCC countries potentially widens the economic scope of the countries by integrating an additional source of revenue in the wake of the oil crisis.

This new source of income will be utilized for high-quality public services by shifting to a more sustainable consumption system. It also aims to reduce the government’s dependence on oil and other hydrocarbons as a source of revenue. Read more to understand the need for VAT consultancy services for business in UAE. 

Our VAT Service in Dubai Includes

VAT Registration

Businesses crossing the defined turnover threshold are liable to register under VAT.

VAT Registration

Based on the threshold, business can apply for registration or can seek exemption from VAT registration.
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VAT Filing

The businesses should file VAT Return online using the Federal Tax Authority (FTA) portal.

VAT Filing

Before filing the VAT return form on the portal, make sure you have met all tax returns requirements.
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VAT Advisory

Our Advisors will guide you at every step of the VAT so that you don't incur the penalties.

VAT Advisory

Conduct of a health check to review the current tax position of your business and provide relevant VAT advice.
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VAT Implementation

Businesses crossing the defined annual turnover threshold are liable to register under VAT.

VAT Implementation

VAT Implementation in UAE made it mandatory for the businesses to keep a full record of their accounts & daily transactions.
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VAT Review

Checks how accurately your business processes VAT transactions,can highlight opportunities for savings & identifies risks.

VAT Review

Implementation of VAT laws in UAE made it mandatory for the businesses to keep a complete record of their accounts & daily transactions.
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VAT De-registration

Tax De-registration is the provision for a registered taxable person to cancel his/her VAT registration.

VAT De-registration

Tax De-registration is the provision for a registered taxable person to cancel his/her VAT registration.
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Points To Be Noted on VAT in UAE

vat-dubai-uae

Only those businesses crossing the defined annual aggregate turnover threshold are liable to register under VAT. Based on the registration threshold, a business will either be mandated to register or as an option, a business can apply for registration or can seek exemption from VAT registration

On this basis, VAT registration in UAE can be classified into the following:

  • Mandatory VAT Registration
  • Voluntary VAT Registration
  • Exemption from VAT Registration

In UAE VAT, businesses whose annual turnover exceeds the mandatory registration threshold of AED 375,000 and the voluntary registration threshold of AED 187,500 are allowed to apply for VAT registration. Therefore, it is crucial for businesses to understand what type of supplies are considered in deriving the annual supplies turnover and how to calculate the VAT turnover for registration in UAE.

In UAE VAT, any person conducting business is not allowed to have more than one Tax Registration Number (TRN), unless otherwise prescribed in the UAE Executive Regulation. Thus, even if you are operating via branches in more than one Emirate, only one VAT registration is required. With a similar objective, if two or more persons are related or associated parties in the businesses, they are allowed to apply for VAT group registration.

VAT-registered businesses collect the amount on behalf of the government; consumers bear the VAT in the form of a 5 per cent increase in the cost of taxable goods and services they purchase in the UAE.

UAE imposes VAT on tax-registered businesses at a rate of 5 per cent on a taxable supply of goods or services at each step of the supply chain.

Tourists in the UAE also pay VAT at the point of sale. 

VAT applies equally on tax-registered businesses managed on the UAE mainland and in the free zones. However, if the UAE Cabinet defines a certain free zone as a ‘designated zone’, it must be treated as outside the UAE for tax purposes. The transfer of goods between designated zones are tax-free.

At the end of each tax period, VAT registered businesses or the ‘taxable persons’ must submit a ‘VAT return’ to Federal Tax Authority (FTA).

A VAT return summarises the value of the supplies and purchases a taxable person has made during the tax period, and shows the taxable person’s VAT liability.

Taxable businesses must file VAT returns with FTA on a regular basis and usually within 28 days of the end of the ‘tax period’ as defined for each type of business. A ‘tax period’ is a specific period of time for which the payable tax shall be calculated and paid. The standard tax period is:

  • quarterly for businesses with an annual turnover below AED150 million
  • monthly for businesses with an annual turnover of AED150 million or more.

Our VAT Procedure

VAT Dubai

Business Impact Assessment, review of key documents like existing contracts and incorporation of VAT clauses in the existing and new contracts and related documents.

Advise, develop and assist in restructuring transactions, supply chain and other related processes, Advise and support for requisite changes in the IT systems and applications.

Assist in VAT registrations and in the preparation and filing of VAT returns. Align compliance practices with VAT requisites.

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