## VAT Services in UAE

### Simplifying VAT Compliance for Your Business

Since its introduction in January 2018, Value Added Tax (VAT) has become an integral part of the UAE economy. VAT supports the country’s long-term development, but for many businesses, understanding and applying VAT laws correctly can be challenging.

We provide end-to-end VAT services to ensure your business remains compliant, efficient, and risk-free. From registration and filing to advisory and dispute resolution, we take care of VAT so you can focus on growth.

### What is VAT?

VAT is an indirect tax levied on the supply of goods and services at each stage of the supply chain. Businesses collect VAT on taxable supplies (output VAT) and recover VAT paid on purchases (input VAT). The difference is remitted to the Federal Tax Authority (FTA).
In the UAE, VAT is governed by Federal Decree-Law No. 8 of 2017 and its Executive Regulations.

#### Who Needs to
Register for VAT?

- Mandatory Registration -

  #### Businesses with annual taxable supplies/imports above AED 375,000.

- Voluntary Registration -

  #### Businesses with supplies/expenses above AED 187,500.

- Exempt Entities –

  #### Some businesses may fall into exempt categories, such as certain financial services or government activities.

### VAT Rates in UAE

- Standard Rate (5%) – Applied to most goods and services.
- Zero-Rated Supplies (0%) – Exports, international transport, specific healthcare and education services, and investment-grade precious metals.
- Exempt Supplies – Certain financial services, local passenger transport, and bare land transactions.

#### VAT Key Concepts & Definitions

To comply effectively, businesses must understand core VAT terms:

- Taxable Person – A business or individual required to register for VAT.
- Taxable Supply – Any supply of goods or services subject to VAT.
- Input VAT – VAT paid on purchases and expenses.
- Output VAT – VAT charged on sales of goods or services.
- Place of Supply – Determines whether a supply is subject to UAE VAT.
- Date of Supply – Establishes when VAT becomes chargeable.

#### Special VAT Rules

- Reverse Charge Mechanism (RCM) – In specific cases (imports or certain services), the buyer accounts for VAT instead of the supplier.
- Designated Zones – Certain free zones are treated as “outside UAE VAT territory” for specific transactions, but not for all supplies.
- Tax Groups – Companies with related entities can apply to be treated as a single VAT group for simplified reporting.

## VAT Compliance Requirements

##### VAT is more than filing returns — businesses must also:

- Maintain proper records of supplies, imports, and expenses.
- Issue VAT-compliant invoices.
- Retain records for at least 5 years.
- File accurate VAT returns within the given deadlines.

Failure to comply can result in penalties starting at AED 10,000 for late registration and fines for incorrect or delayed filings.

##### Our VAT Services

We offer comprehensive VAT solutions tailored to your business:

- VAT Registration & Deregistration – Hassle-free handling of procedures with the FTA.
- VAT Return Filing – Timely and accurate return submissions to avoid penalties.
- VAT Transaction Advisory – Practical advice on day-to-day VAT queries and cross-border transactions.
- VAT Amendments & Refunds – Support with corrections and VAT refund claims.
- VAT Reconsideration & Dispute Resolution – Representation before tax authorities to resolve issues.
- VAT Implementation & Training – Assisting with system setup, accounting changes, staff training, and compliance audits.

##### Why Choose Us for VAT Services?

- In-Depth Knowledge – Our team stays updated with the latest VAT laws and FTA guidance.
- Tailored Solutions – Services customized for SMEs, corporates, and free-zone entities.
- Accuracy & Reliability – Zero-error approach to filings and compliance.
- Full Support – From registration to audits, we handle the entire VAT cycle.
- Peace of Mind – Reduce risk, avoid penalties, and stay focused on your business.