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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How is VAT different from income tax? Which tax is eligible for which persons/businesses? Tax applicability and eligibility and differences
Read moreVAT threshold is the limit of supply value over which businesses in the UAE need to register for VAT and pay taxes. However, many businesses are struggling to calculate their VAT eligibility based on the threshold. In order to determine whether the value of your taxable supplies has exceeded the VAT registration threshold limit (mandatory …
Dubai is no more a preferred destination for shoppers ever since the launch of the value-added tax (VAT) system from January 1. The increase in cost due to added tax has compelled Omanis to look for other cheaper markets to suffice their shopping needs. There was a time when Dubai used to be the number …
Applying 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 …
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