Professional. Transparent. Diligent.

What is VAT?

The UAE’s Value Added Tax (VAT) system, implemented to diversify government revenue and enhance economic stability, is a crucial aspect of doing business within the United Arab Emirates. Understanding and complying with VAT regulations is not just a legal obligation, but a key factor in your business’s financial health.

Professional. Transparent. Diligent.

Who Needs to Register for VAT in the UAE?

According to the Federal Tax Authority (FTA), businesses in the UAE are required to register for VAT if:

Mandatory Registration:

Your taxable supplies and imports exceed AED 375,000 within the preceding 12 months or are expected to exceed this threshold in the next 30 days.

Voluntary Registration:

Your taxable supplies and imports exceed AED 187,500 within the preceding 12 months or are expected to exceed this threshold in the next 30 days. Voluntary registration can be beneficial for businesses that deal with other VAT-registered entities, allowing them to reclaim input tax.

Professional. Transparent. Diligent.

Current Key VAT Regulations in the UAE:

  • Standard Rate: The standard VAT rate in the UAE is 5%.
  • Zero Rate: Certain goods and services, such as exports of goods and international transportation, are zero-rated.
  • Exempt Supplies: Specific sectors, like certain financial services and residential properties, are exempt fromVAT.
  • Accurate Record-Keeping: Businesses must maintain meticulous records of all taxable transactions, including invoices, credit notes, and purchase records, for at least five years.
  • Regular VAT Returns: Businesses are required to file VAT returns and pay any due tax to the FTA within specified deadlines. The frequency of filing (monthly or quarterly) depends on your annual turnover.
  • Penalties for Non-Compliance: Failure to comply with VAT regulations can result in substantial penalties, including fines and potential legal action.
PARTNERING WITH TAXWISE

Taxwise guides companies and business owners through the mandatory registration process, helping them meet tax standards and comply with regulatory tax persons requirements. Whether you are a juridical person, a natural person, or a foreign entity,we assist with corporate application on platforms like Emara Tax, ensuring accurate submissions and timely filings to meet business tax deadlines and avoid late tax penalties.

Navigating the complexities of VAT can be challenging. That’s where we come in. We offer comprehensive VAT registration and submission services, ensuring your business remains compliant and avoids costly penalties.

Our Services Include:

  • VAT Registration Assistance:
    We guide you through the entire registration process, ensuring accurate and timely submission to the FTA.
  • VAT Return Preparation & Submission:
    We handle the preparation and filing of your VAT returns, ensuring compliance with all applicable regulations.
  • VAT Consultation & Advisory:
    We provide expert advice on all aspects of VAT, helping you understand your obligations and optimize your tax position.
  • Record-Keeping Support:
    We can assist you in establishing and maintaining accurate VAT records.
  • FTA Liaison:
    We can act as your representative in communications with the FTA.
  • VAT Registration Assistance:
    We guide you through the entire registration process, ensuring accurate and timely submission to the FTA.
  • VAT Return Preparation & Submission:
    We handle the preparation and filing of your VAT returns, ensuring compliance with all applicable regulations.
  • VAT Consultation & Advisory:
    We provide expert advice on all aspects of VAT, helping you understand your obligations and optimize your tax position.
  • Record-Keeping Support:
    We can assist you in establishing and maintaining accurate VAT records.
  • FTA Liaison:
    We can act as your representative in communications with the FTA.

Our service includes preparing necessary documents, such as trade licenses and financial records, to meet required corporate incentives and address corporate liabilities. Businesses operating under corporate Dubai jurisdiction or any UAE emirate can rely on us to handle tax corporate returns, manage taxable income, and optimize taxable relief.

No Obligation, Free
45-min initial consultation.

No Obligation,
Free 45-min initial consultation.

Book in with one of our British trained account managers to discuss your company’s needs.

What we do and
how we can help.

What we do
and how
we can help.

Read through our list of services here and understand what makes taxwise different! We specialise in Bookkeeping and Accounting in Dubai UAE.