Value Added Tax (VAT) in Dubai

Value Added Tax (VAT)

All UAE licensed companies making taxable supplies exceeding the registration threshold of AED 375,000 must register with FTA for Value Added Tax and fulfill applicable requirements.

Businesses exceeding the Taxable supply value of AED 187,500 may opt to register voluntarily.

Value-Added Taxes, or VATs, are levied on the end consumer's consumption of taxable goods and services. The Federal Tax authority in UAE oversees Tax compliance in UAE.

You can purchase standard-rated (5%), zero-rated, or exempt supplies in accordance with specific conditions. Being FTA-registered tax agents, we provide all VAT-related services.

VAT Registration: As mentioned above, All UAE licensed companies making taxable supplies exceeding the registration threshold of AED 375,000 must register with FTA for Value Added Tax and fulfill applicable requirements. Businesses exceeding the Taxable supply value of AED 187,500 may also opt to register voluntarily.

When the VAT law is in force, businesses outside the UAE must register if they plan or expect to supply goods or services within the UAE. In addition, there is no other person who is required to account for the UAE VAT due on their behalf.

We have certified Arabic and English-speaking Agents to help you throughout the registration process and make the process smooth and easy for you.

VAT Return filing: As per Article 64 of Executive Regulations of the Federal Decree no 8 of 2017, ‘A Tax Return must be received by the Authority no later than the 28th day following the end of the Tax Period concerned or by such other date as directed by the Authority.’.

Filing your tax return timely and accurately is essential and could be an extra task for you. We are here to assist you as registered tax agents by ensuring you do not miss any deadlines.

VAT De-Registration: You must apply for de-registration if you meet the following criteria:

If you	Then you
If you ceased making taxable supplies or are still making taxable supplies, but the value in the preceding 12 calendar months is less than the Voluntary Registration Threshold,	you must apply for de-registration within 20 business days from the occurrence of the event
If you are still making taxable supplies but the value in the previous 12 months was less than the Mandatory Registration Threshold, and 12 months have elapsed since the date of registration if you were registered voluntarily	may apply for voluntary de-registration

We have qualified tax agents who can assist you in determining if you are eligible for de-registration, and if so, how to proceed. In the absence of a deregistration application within the time frame set out in the Tax Law, the Registrant is liable for AED 10,000.

There are various circumstances under which you can apply for a tax refund, including:

Usually, FTA takes 20 business days to respond to a refund request. Our qualified tax agents will guide you based on your refund scenario and assist you accordingly.

VAT Registration: Accounting Principles and standards are applied internationally to improve the quality of financial information reported by businesses. This enhances better practice by enabling adequate comparability and accountability. International Accounting Standards Board (IASB) issues International Financial Reporting Standards (IFRS), which are followed internationally.

In addition, the U.S. publishes its own Generally Accepted Accounting Principles (GAAP) by Financial Accounting Standards Board (FASB).