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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Read moreApplying for VAT registration involves two simple steps. In the first step, you need to create an e-Services account. In the next and last step, you login to your new e-Service Account and complete the VAT registration process. 1. Creation of e-Service Account 2. VAT Registration Process Here’s a step by step guide to help …
The Federal Tax Authority (FTA), UAE has introduced a roadshow in order to assist business who are not registered yet under the ambit of value-added tax (VAT) and render a profit of the exemption provided by the FTA up to April 30. These new initiatives will start in all seven emirates with the help of …
The value-added tax (VAT) is a consumption-based tax system which was introduced in the UAE and Saudi Arabia. The UAE VAT is applicable on certain goods and products at the standard rate of 5 per cent. VAT is paid by businesses while making a taxable supply and it is ultimately borne by the end consumer. …
As on the 100th day of VAT launch, around 275,000 companies and people were registered under VAT, which is about 98.8 per cent of the companies which were obliged to get VAT registration. This effectively puts UAE VAT at number one in the world in terms of VAT compliance ratio. The 100 days of VAT …
At present, the 5% VAT is applicable to the entire jewellery piece, including the cost of labour and the cost of item itself. The gold and jewellery industry leaders are in talks with the UAE government to limit the applicability of value-added tax (VAT) only to the making charges in order to reduce the product …
The VAT (value added tax) has been successfully launched in UAE with the last date for registration extended up to April 30, 2018. All eligible businesses in the country must ensure that they are registered for the VAT and follow the regulations. The FTA (Federal Tax Authority) has also recommended that all businesses get equipped …
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