VAT UAE – Value Added Tax


VAT  UAE : The UAE has issued Federal Decree Law No. (8) of 2017 on Value Added Tax (VAT) (“VATLaw”) which is now implemented in the UAE effective 1 January 2018 at a standard rate of 5%. Wherever applicable, VAT will be collected on taxable supplies of goods and services in the UAE.

VAT UAE :Implication of VAT on businesses

Businesses will be responsible for carefully documenting their business income, costs and associated VAT charges.

Registered businesses and traders will charge VAT to all of their customers at the prevailing rate and incur VAT on goods/services that they buy from suppliers. The difference between these sums is reclaimed or paid to the government.


VAT UAE: On which businesses do VAT apply?

VAT applies equally on tax-registered businesses managed on the UAE mainland and in the free zones. However, if the UAE Cabinet defines a certain free zone as a ‘designated zone’, it must be treated as outside the UAE for tax purposes. The transfer of goods between designated zones are tax-free.

List of Designated Zones UAE

VAT UAE : How to file VAT return?

You must file for tax return electronically through the FTA portal: Before filing the VAT return form on the portal, make sure you have met all tax returns requirements. The following guideline shows you four steps to register a VAT return.

Failure to file a tax return : VAT in UAE

Failure to file a tax return within the specified timeframe will make the violator liable for fines as per the provisions of Cabinet Resolution No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE.

Our VAT Services: Saif Chartered Accountants (SGA World) offer  various VAT Services. (VAT accounting, VAT Auditing)

VAT Support – Call us:  04 451 8600  Email: [email protected]

[wpforms id=”690″]

Further Reading : Tourist VAT Refund

Leave a Reply