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VAT Services in UAE

VAT Registration Services in UAE

The UAE introduced a 5% Value-Added Tax (VAT) on goods and services on 1 January 2018. Businesses that meet certain thresholds are required to register for VAT and comply with local tax laws. Partnering with a professional VAT service provider in Dubai, like Silver Oak, ensures accurate registration, timely filing, and smooth compliance with all UAE tax regulations.

What is VAT in UAE?

VAT is a tax applied to goods and services at every stage of sale or supply. It applies to all businesses registered for VAT, including mainland and free zone companies. A taxable supply occurs when a business provides goods or services in the UAE, which may be taxed at 5% (standard rate) or 0% (zero-rated).

Difference Between Zero-Rated and Exempt Supplies

Zero-rated supplies, such as exports, first sales or rent of residential buildings, and certain educational services, are taxed at 0%, and businesses can reclaim VAT paid on these transactions. Exempt supplies, like financial services, residential buildings, and local passenger transport, do not carry VAT, and businesses do not need to register or reclaim tax.

Why VAT Services are Important for Businesses

VAT services in Dubai help businesses maintain accurate accounting records, file returns on time, avoid fines, and stay updated with VAT law changes. Working with experienced VAT consultants reduces the workload on internal teams, ensures compliance, and improves operational efficiency. Reliable VAT services also protect a company’s reputation and support smooth business growth in the UAE.
vat services in dubai

How can VAT services help you grow your business in the UAE?

VAT services in UAE help businesses avoid mistakes when filing returns, claim input tax, prevent fines, keep records for five years, and conduct tax audits. They also keep businesses updated on VAT law changes and guide them on preparing sales invoices. Proper VAT management helps businesses save money, improve cash flow, and stay compliant with government rules.

Silver Oak auditing and Accounting Services Provided by VAT Consultants

VAT consultants provide services in VAT compliance, risk management, tax planning, filing returns, record keeping, accounting, and bookkeeping in Dubai. They also assist with business setup in dubai and organization for both service providers and clients.

VAT Registration Process

Businesses must register for VAT if their taxable supplies and imports exceed AED 375,000 per year. Companies with taxable supplies and imports over AED 187,500 can register voluntarily. Mandatory registration applies to businesses, while voluntary registration is available for eligible companies.

How do you Register for VAT?

Businesses in the UAE can register for VAT through the FTA e-Services portal.

  • VAT Accounting
    Businesses must keep proper records to file VAT returns for:
  • Local sales under standard VAT rules
  • Taxable export sales (GCC sales)
  • VAT-exempt sales
  • Local and import purchases
  • Zero-rated export sales
  • VAT training

Organizations need to understand new tax rules and apply them to their business. Compliance may require changes in operations, accounting, technology, and staff to follow UAE VAT laws correctly.

VAT Accounting and Record Keeping

The introduction of VAT in the UAE has improved transparency, accountability, competitiveness, technology use, operational efficiency, and provided new financial support for social and economic programs. Proper VAT accounting is critical for compliance. Businesses must keep records of all transactions, including local sales, taxable export sales, VAT-exempt sales, local and import purchases, and zero-rated export sales. Applying VAT rules may require changes in accounting systems, business operations, and staff responsibilities.

What is VAT Return Filing?

VAT-registered businesses must submit VAT returns to the Federal Tax Authority (FTA) at the end of each tax period. Returns include details of VAT on sales, purchases, net VAT due, and additional reporting requirements.Businesses with annual turnover below AED 150 million typically file returns quarterly, while those with turnover above AED 150 million file monthly. The FTA can also set different tax periods if needed.

What is VAT Liability & How is it Calculated?

VAT liability is the difference between output tax (VAT collected on sales) and input tax (VAT paid on purchases). If output tax exceeds input tax, the difference is paid to the FTA. If input tax exceeds output tax, a refund can be claimed. The calculation formula is simple: VAT = Output Tax − Input Tax.

How to File VAT Return in UAE?

In the UAE, businesses must file VAT returns online through the FTA portal (eservices.tax.gov.ae) using Form 201. The form includes business details, the VAT return period, VAT on expenses and sales, net VAT due, and any additional reporting requirements.

What are the Benefits of Filing a VAT Return?

Filing VAT returns has many benefits. It helps build a good reputation, improves business relationships, provides a clear view of the company’s finances, and is easier to manage than other indirect taxes, making it popular with larger companies.

When are businesses required to file VAT returns?

Businesses must file VAT returns quarterly if their annual turnover is below AED 150 million, and monthly if it is AED 150 million or more. The FTA can also set a different tax period if needed.

VAT Invoices & Refunds

Registered businesses issue tax invoices to customers. Supermarkets and retail stores may use simplified invoices, while larger companies use detailed invoices. VAT refund applications are reviewed by the FTA within 20 business days, with approval or rejection communicated via email. Approved refunds are processed within five business days. UAE nationals can also claim VAT refunds for new homes built for personal or family use, even if unregistered.

Silver Oak VAT Services in Dubai

Silver Oak provides a full range of VAT services across Dubai and the UAE. Our services include:

  • VAT registration and deregistration
  • VAT implementation and recovery
  • Accounting and bookkeeping support
  • Tax consultancy and planning
  • Internal audits and accounting outsourcing

We assist both start-ups and established businesses in staying compliant with UAE VAT laws while protecting their reputation and improving operational efficiency. Our VAT consultants are always available to provide guidance and support, ensuring smooth business operations and long-term compliance.

Benefits of VAT Services in UAE

Filing VAT returns helps businesses maintain a good reputation, improve relationships with partners, and keep clear financial records. VAT is easier to manage than other indirect taxes, making it suitable for both small and large companies.

FAQ

General Question

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To register for VAT in the UAE, create an e-service account at https://eservices.tax.gov.ae, provide the required details, and click ‘Registration for VAT’ on the dashboard.

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The import tax paid on goods is eligible for input tax recovery, which can be reclaimed through the Reverse Charge Mechanism.