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The UAE implemented a Value Added Tax (VAT) system on January 1, 2018, with a standard rate of 5%. The introduction of VAT has had a significant impact on businesses operating in the UAE. Here are some key points to consider:

VAT registration:

Businesses with an annual turnover of AED 375,000 or more are required to register for VAT. However, businesses with an annual turnover between AED 187,500 and AED 375,000 have the option to register voluntarily.

VAT returns:

Registered businesses are required to file VAT returns on a regular basis (usually quarterly) and remit any VAT due to the government.

VAT invoices:

Businesses must issue VAT-compliant invoices for all taxable supplies made, and these invoices must contain certain information, such as the VAT registration number and the amount of VAT charged.

VAT exemptions:

Certain goods and services are exempt from VAT, such as certain financial services, healthcare, and education.

Input tax credit:

Businesses can claim the input tax credit on VAT paid on their purchases, which can be deducted from the VAT charged on their sales.


Non-compliance with VAT regulations can result in penalties and fines.

How can we help you:

It is important for businesses to understand their VAT obligations and ensure compliance with the VAT regulations to avoid penalties and fines. Seeking the advice of tax professionals can also help businesses navigate the complexities of the UAE VAT system.


Please get in touch with

Mr. Faisal Salim


+971 52 2037461