Address: Office No.1 Industrial Aera No.3 Buldia Building, Sharjah, United Arab Emirates
E-Mail: mhtaxationllc@gmail.com
Businesses in the UAE must follow the VAT – Value Added Tax laws set by the Federal Tax Authority. The VAT rate in UAE is at a standard rate of 5%. It applies to most goods and services. Companies must assess if they meet the registration threshold to avoid penalties.
Businesses in the UAE must follow the VAT – Value Added Tax laws set by the Federal Tax Authority. The VAT rate in UAE is at a standard rate of 5%. It applies to most goods and services. Companies must assess if they meet the registration threshold to avoid penalties.
If your business revenue exceeds the registration threshold, it’s mandatory to register. Once registered, you’ll receive a certificate of registration for Value Added Tax, which proves compliance.
Any business earning above AED 375,000 annually must complete value added tax registration. Voluntary registration is also allowed for businesses earning above AED 187,500.
UAE follows a comprehensive, indirect consumption tax model. The VAT – Value Added Tax system in UAE is designed to ensure a fair tax system across all goods and services.
The process starts with creating an account on the FTA portal. You must provide trade license, financial records, and business activity details.
Upon approval, your business receives a value added tax VAT number. This number is mandatory for tax invoices, returns, and inter-business dealings.
VAT is recorded as output VAT (on sales) and input VAT (on purchases). Accurate records are essential for reclaiming input VAT and avoiding fines.
Businesses often misclassify exempt supplies or miss filing deadlines. These lead to penalties and compliance risks.
We handle documentation, calculations, and submission, ensuring compliance with VAT regulations under UAE law.
Compared to the EU VAT or U.S. sales tax, UAE’s VAT is broad and simple. The rate is uniform and exemptions are clearly defined.
UAE coordinates with other GCC countries for VAT policies. This helps streamline taxation across member states.
You can revise your return on the FTA portal. However, repeated errors may trigger audits. Always keep documentation ready for verification.
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