What is VAT in the UAE?
VAT is a transaction-based indirect tax levied at each step of the supply chain. Registered businesses collect and account for the tax on behalf of the Federal Tax Authority, while end consumers ultimately bear the cost.
Since VAT was introduced in the UAE on January 1, 2018, our VAT experts have helped businesses stay compliant while managing working capital efficiently and limiting unnecessary tax outflow.
Who Needs to Register?
Businesses with an annual turnover exceeding AED 375,000 are required to register for VAT. Businesses with turnover between AED 187,500 and AED 375,000 may register voluntarily.
Voluntary VAT Deregistration
A business may proceed with voluntary deregistration if:
- 12 months have passed since the tax registration date
- Taxable items are no longer supplied
- Annual turnover has fallen below AED 187,500
- The estimated taxable purchases for the next 30 days fall under the voluntary registration threshold
- The business has permanently shut down
Mandatory VAT Deregistration
- The business stops generating AED 375,000 in taxable sales
- The business no longer provides taxable goods or services
Our VAT Services
- VAT Registration
- VAT Return Filing
- VAT Refund Assistance
- VAT Deregistration Services
- VAT Amendments
- Tax Audit Assistance
- Excise Tax Registration & Return Filing
- TRC (Tax Residency Certificate) Application Assistance
- VAT Dispute Resolution & Reconsideration Requests to the FTA
- VAT Due Diligence Review