Email ID :info@thevatuae.com
Call Us:050 7839 436
0097 150 4753 186
Email ID :info@thevatuae.com
Call Us:050 7839 436
0097 150 4753 186
It’s Like Having all UAE VAT Info in Your Pocket.
VAT Plus - Product Features The value-added tax (VAT), which came into effect from January 1, 2018, in UAE, is a consumption based tax which will be applicable at each stage of the 'supply chain'. That means, any UAE business making a taxable supply of goods and services will have to pay VAT on that supply. The VAT UAE is based on the same concept as followed by the other countries which use this tax system, however, the standard rate is fixed at 5% for all taxable supplies for VAT in UAE.
As per the VAT rules and regulations, some basic services (and goods) like food, public transport, and some healthcare services are exempt from the VAT, while some other services will be taxed at zero percent. You can find out more about VAT-exempt and non-exempt supplies on our blog. The VAT shall be levied at each stage of the supply chain, but there is a concept of input credit through which businesses can claim their taxes back from the government, and the ultimate VAT cost is borne by the end consumers.
VAT has been implemented in UAE with the aim to reduce the country's dependency on oil resources for revenue. It will create a new and stable source of income for the government, which will be utilized to provide better and more advanced public services. So, the ultimate benefit of VAT is to the general public.
The standard VAT rate in UAE is 5%, that means most of the taxable supplies will be taxed at 5%. However, some services are zero-rated under VAT while some others are kept free of tax. Click to review full VAT rate list
The VAT will be paid by a business (with annual turnover above Dh375,000) in UAE on any of their taxable supplies of goods and services. The tax is applicable at each stage of the supply chain. The VAT cost is ultimately borne by the end consumer when they pay the actual price (base price + VAT) at the time of purchasing a taxable product/service.
VAT was officially launched on January 1, 2018 in UAE and has been implemented on all eligible supplies across the country. The registrations for VAT started in 2017.
A farmer grows cotton which is plucked and sold to a factory
The factory processes the cotton and manufactures clothes which are sold to a retail chain
The clothes are stocked in stores and placed for sale to consumers.
A consumer buys a new dress.
What is VAT return? How to file VAT return in the UAE? Rules and guidelines to follow while filing VAT return on the FTA website
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What is VAT refund? How to claim VAT refund in UAE? Which supplies are eligible for VAT refund and which ones are not?
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VAT eligibility and registration process on the FTA website. VAT registration deadline and threshold limit for UAE businesses
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Online VAT calculation tool for UAE businesses. Calculate your VAT liability and how much tax you need to pay in a particular month.
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VAT is applicable at the standard rate of 5% on most supplies in the UAE. Check out details of VAT rate, zero rate and exempt supplies
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A real-time report on VAT impacts on various industries in the UAE, including real estate, business, health, fuel, food and more
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VAT compliant bills and invoicing, and how to produce VAT invoice for taxable supplies made by registered businesses in the UAE
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Details on which records need to be maintained by businesses under the VAT and how to maintain them, and for how long
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Details of penalty on violation of VAT rules, including no or late filing of VAT returns, late registration, and any kind of VAT fraud.
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Things a business needs to do in order to get VAT compliant in the UAE, including the details of VAT eligibility, laws and regulations
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How and when to pay VAT, the options for making VAT payment, VAT calculation and payment online/offline, VAT refund and more
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How is VAT different from income tax? Which tax is eligible for which persons/businesses? Tax applicability and eligibility and differences
Read moreThe Federal Tax Authority (FTA) has announced the 3-step procedure for UAE nationals for claiming the refund of the VAT paid on the construction of new residential properties- There are certain conditions which the taxpayer needs to fulfill in order to be eligible for VAT refund. These conditions are: Applicant must be a UAE citizen; …
While filing the quarterly VAT Return Form 201, the taxpayer needs to furnish the details of all the supplies made by them, including the imports of goods, during that tax period. The section 6 ‘Goods Imported into the UAE’ under the head ‘Sales and All other Outputs’ will contain the details of imports made by …
According to a recent news, the UAE Cabinet has allowed VAT refund for tourists in the UAE. Under the scheme, those people visiting the UAE, especially Dubai, for tourism purpose can avail a refund of VAT paid on the purchases made by them during the visit. In this article, you will find details of how …
VAT Return Form 201 is the official return form for the UAE VAT registered businesses. The form will be filed quarterly (or monthly for some businesses). It contains the details of the supplies made by a business, VAT paid, VAT refund eligibility and total VAT liability of that business. The VAT Return Form 201 has …
The recent decision taken by the UAE cabinet to exempt the trading (investments) of gold and diamond from VAT has been appreciated by industry experts. The cabinet, earlier this month, had released a law introducing the VAT under Reverse Charge Mechanism for investment in gold, diamond and other precious metals, under which a five percent …
VAT (Value-added tax) was released in the UAE on 1st January 2018. Starting from this date, registered businesses in the UAE are required to file quarterly (or monthly) VAT returns with the FTA online. The registration threshold for VAT is Dh375,000 annual turnover. VAT Return Form 201 VAT return form 201 is needed to be …
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