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 Sales tax? Which tax is eligible for which persons/businesses? Tax applicability and eligibility and differences
Read moreThe UAE’s Federal Tax Authority (FTA) announced the implementation of the VAT refunds scheme for business visitors on Tuesday. Those who are qualified for refunds can apply through a form available on the website. The minimum VAT amount business visitor can reclaim is fixed at Dhs2,000, which may encompass a single purchase or multiple purchases. …
The UAE Ministry of Energy and Industry have announced the new fewel prices in the country for the month of April 2019. The price hike is nothing new as a gradual increase in the petrol and diesel prices sometimes is not felt hard and affects directly to the people’s budget and pocket but considering as …
The FTA is all set to launch the “VAT refunds for business visitors scheme” from 2 April 2019. Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai, the UAE Minister of Finance and FTA Chairman, the tax authority chaired the meeting of FTA Board of Directors and said that the foreign businesses can apply …
According to the Federal Tax Authority (FTA), close to 300,000 business have recently registered for VAT in the UAE region. At one of the meetings headed by Sheikh Hamdan bin Rashid Al Maktoum, also serving as the Deputy Ruler of Dubai, it was announced that the number of registered tax agents operating in the UAE …
As the VAT (Value Added Tax) system in the UAE completes its first year, many businesses are engaged in analysing their tax liabilities and especially adjusting their end-of-year input tax dues, if any. Input tax recovery is generally made by partial exempt taxpayers who claim input tax for the supplies which are exempted. Such taxpayers …
The UAE’s Federal Tax Authority (FTA) expounded that income earned through Bank interest and Dividends are outside the scope of VAT in the UAE. These are passively earned interest income sourced from bank deposits/dividends and are not subject to value-added tax (VAT) in the country. So, there is no obligation to report them in the …
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