UAE VAT Services
In the United Arab Emirates (UAE), VAT (Value Added Tax) is a consumption tax levied on the supply of goods and services. implemented on January 1, 2018, VAT is a significant part of the UAE’s tax system.
Here are some key points about VAT in the UAE:
- Standard Rate: The standard VAT rate is 5%. This is relatively low compared to global averages.
- Exemptions and Zero Rates: Certain goods and services are either exempt from VAT or subject to a zero rate. Exemptions include certain healthcare services, educational services, and residential property rentals. Zero-rated items include exports of goods and international transport services.
- Registration Threshold: Businesses must register for VAT if their taxable supplies and imports exceed AED 375,000 annually. Businesses with a taxable turnover between AED 187,500 and AED 375,000 can opt for voluntary registration.
- Filing and Payment: VAT-registered businesses must file VAT returns and pay any VAT due to the Federal Tax Authority (FTA) on a quarterly or annual basis, depending on their turnover.
- Invoicing: VAT-registered businesses are required to issue VAT-compliant invoices, which include specific details such as the VAT rate applied, and the amount of VAT charged.
Expert VAT Consultancy in UAE for all Your Businesses
Al-Hisab Tax Consultancy is an industry-leading accounting and consultancy firm in Dubai. Offering comprehensive VAT consultancy with VAT Experts and VAT return filing solutions to companies all over the UAE. We help educate businesses on the financial impact of tax to goods and services, and the measures they can take to mitigate the effects. We can guide businesses on the steps to proper taxation compliance, VAT refund and adoption including the necessary updates to accounting systems and databases.