VAT refers to Value Added Tax. VAT is a tax on the transactions of goods and services, applied at each stage of the supply chain and is based on the value-added at each stage. It has been considered as a mandated consumption tax on goods and services.
VAT in the UAE
Value Added Tax (VAT) was introduced in the UAE on January 1, 2018. The rate at which VAT is charged is Five (5) percent. The Federal Tax Authority (FTA) is responsible for implementing VAT in the UAE. The authority provides guidance, collects VAT, and conducts audits. At the end of each tax period, VAT registered businesses or ‘taxable persons’ must submit a ‘VAT return’ to the FTA. VAT returns can be filed on a monthly or quarterly basis through the FTA.
Being registered under the VAT law defines that your business is recognized by the government.
FTA has set up a Registration criterion for VAT. Let’s have a glance at it,
Businesses having taxable supplies and imports above AED 375,000
Mandated to apply for VAT registration
Businesses having taxable supplies and imports between AED 187,500 and 375,000
Can voluntarily apply for VAT registration
Businesses having taxable supplies and imports less than AED 187,500
Not required to apply for VAT registration
Our Services for VAT are listed below
Contact
- The Galleria, Hyatt Regency Level II, Office No. 218 B, PO Box: 119712, Dubai, UAE
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+971 04 27 11 952
+971 52 124 5007 - info@aeauditing.com