When it comes to running a business, there are a lot of moving parts – and taxes are one of the most important aspects to consider as it is mandatory for certain companies that fall within the threshold to comply with the Value Added Tax (VAT) requirements in the United Arab Emirates (UAE).

As a federation with seven emirates, each with its own ruler, the UAE has diversified its economy and amended its tax regulations to protect businesses, strengthen its financial institutions and support the fight against money laundering. 

Introduced in 2018 at a rate of 5%, VAT is levied on importing and supplying goods and services in the UAE. It is a form of consumption tax that is placed on a product or service whenever value is added at each stage of the supply chain, from production to the point of sale. The end consumer ultimately pays the tax. Registered Businesses must charge VAT on their sale and file monthly VAT returns to add to their net gains.

There are various types of value-added tax services in the UAE and these include: 

• VAT Registration – All businesses that are required to file monthly VAT returns must be registered for VAT. 
• VAT Return Filing – Businesses that are registered for VAT are eligible for VAT returns.
• VAT Refunds: Businesses that incur expenses are subject to VAT and can claim a refund from the government.
• VAT De-Registration: When the threshold of a taxable person falls below the limit he must deregister from VAT.
• VAT Consultancy – Businesses may choose to engage the services of a VAT consultant to ensure that they are compliant with UAE VAT law. 

VAT services are important because they help businesses stay compliant with UAE law. Non-compliance can result in heavy fines from the government. Moreover, businesses that are not registered for VAT cannot claim back any input tax incurred on business expenses. This can put them at a competitive disadvantage compared to businesses that are registered for VAT. 

So, if you are struggling with the complexities of VAT in the UAE. AccountAbility is here to help. Our team can assist you to navigate through this taxing tax legislation and save time, money & resources while protecting your assets too! 

Schedule a free consultation call at +971 50 279 8784⁠  or email us today at info@accountability.ae and get one step closer to hassle-free management of taxes for your business operations. Don’t wait – reach out right away!