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.
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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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Read moreThe UAE introduce the New VAT Rules. The rule will apply to any used Pre-Owned Items such as household items, furniture, automobiles, and electronics. Recently the FTA (Federal Tax Authority) announce the news of five percent on the sale and purchase of a used product such as cars and furniture etc. Anurag Chaturvedi, managing partner, Chartered …
Three UAE Free Zones Exempted Areas The Federal Tax Authority (FTA) has declared three new UAE free zones that will be exempted from the VAT, adding them to the list of vat-free designated zones. The total number of designated zones in the UAE now stands at 23, after the latest edition. All these areas are out …
A Designated Zone is a specific region in the UAE that is treated as outside the implementing States for the VAT purpose. Since these zones are out of the purview of the VAT UAE, the computation of VAT on the supplies made from a Designated Zone requires a different mechanism. VAT applicability to services supplied …
Following the release of the GIBAN system to make it easier for UAE residents and businesses to pay their VAT dues, the FTA has now started accepting VAT payments through UAE Exchange. In a recent announcement, UAE Exchange has said that registered businesses in the UAE can now use the Exchange services for making payments …
Tax Credit Note is one of the VAT invoices that a registered taxpayer issues to customers in specific conditions. In this article, we will learn more about the eligibility, conditions, and format of Tax Credit Note. The VAT rules of GCC make it compulsory for registered taxpayers to attach proper VAT invoices for all their …
While answering questions about various VAT related issues, FTA on Wednesday said that the recently introduced VAT reverse charge mechanism on precious items such as gold and diamond is only applicable to commercial transactions/trading of these items between registered dealers. VAT on Gold and Diamonds in UAE Supplies by a registered VAT dealer to another …
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