Email ID :info@thevatuae.com

vat uae header message

Call Us:050 7839 436
0097 150 4753 186

vat uae services
Download VAT in UAE App

It’s Like Having all UAE VAT Info in Your Pocket.

VAT in UAE AppVAT in UAE App VAT Plus - Product Features

The introduction of VAT in UAE

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.

Download

Why VAT in UAE ?

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.

What will be the VAT Rates?

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

vat-in-uae

Who will pay the VAT?

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.

When was VAT launched?

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.

VAT Return and Payment Process

A farmer grows cotton which is plucked and sold to a factory

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 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

The clothes are stocked in stores and placed for sale to consumers.

A consumer buys a new dress

A consumer buys a new dress.

A farmer grows cotton which is plucked and sold to a factory

A Definitive Guide for VAT in UAE

VAT Return

VAT Return

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

Read more
Vat Refund

Vat Refund

What is VAT refund? How to claim VAT refund in UAE? Which supplies are eligible for VAT refund and which ones are not?

Read more
VAT Registration

VAT Registration

VAT eligibility and registration process on the FTA website. VAT registration deadline and threshold limit for UAE businesses

Read more
Vat Calculator

Vat Calculator

Online VAT calculation tool for UAE businesses. Calculate your VAT liability and how much tax you need to pay in a particular month.

Read more
VAT Rate

VAT Rate

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

Read more
VAT Impact industry

VAT Impact industry

A real-time report on VAT impacts on various industries in the UAE, including real estate, business, health, fuel, food and more

Read more
VAT Invoice

VAT Invoice

VAT compliant bills and invoicing, and how to produce VAT invoice for taxable supplies made by registered businesses in the UAE

Read more
How to maintain vat account and records

How to maintain vat account and records

Details on which records need to be maintained by businesses under the VAT and how to maintain them, and for how long

Read more
VAT Penalty

VAT Penalty

Details of penalty on violation of VAT rules, including no or late filing of VAT returns, late registration, and any kind of VAT fraud.

Read more
VAT Checklist

VAT Checklist

Things a business needs to do in order to get VAT compliant in the UAE, including the details of VAT eligibility, laws and regulations

Read more
VAT Payment

VAT Payment

How and when to pay VAT, the options for making VAT payment, VAT calculation and payment online/offline, VAT refund and more

Read more
VAT v/s income tax

VAT v/s income tax

How is VAT different from income tax? Which tax is eligible for which persons/businesses? Tax applicability and eligibility and differences

Read more

VAT Latest News

UAE VAT Refund Process for New Residences Announced by FTA

May 21, 2018

The 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; …

VAT Return Form 201 – Import of Goods

May 21, 2018

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 …

Tourist Refund in VAT Form 201

May 18, 2018

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 …

Standard Rated Supplies in VAT Return Form 201 Defined

May 17, 2018

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 …

No VAT on Jewellery Trading may benefit the UAE

May 16, 2018

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 Return Form 201 – How to File VAT Returns in UAE

May 15, 2018

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 …

NEWSLETTER Signup!

Stay Updated with the Latest VAT News in UAE