Value Added Tax (VAT)
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VAT Registration, Return Filing and Compliance Services in UAE
From VAT registration to VAT return filing, refunds and FTA audits, our tax team in Sharjah keeps your business compliant with UAE VAT, so you can focus on running it. Hussain Al Shemsi Chartered Accountants supports mainland and free zone companies across the UAE, from first registration to ongoing quarterly returns.
VAT rules changed again in 2026, with amendments to the VAT Law from 1 January and new penalties from 14 April. We keep track of every update so your returns stay accurate and on time.
UAE VAT at a glance
- Standard rate: 5%, with zero-rated and exempt supplies in specific sectors.
- Mandatory registration: taxable supplies and imports above AED 375,000 a year.
- Voluntary registration: supplies or expenses above AED 187,500 a year.
- VAT returns: usually quarterly, due by the 28th day after the end of each tax period, filed on EmaraTax.
- Records: keep invoices and VAT records for at least five years.
Our VAT Services
VAT registration and deregistration
We check your threshold, register you on EmaraTax and handle deregistration when you close or fall below the limit.
VAT return filing
Accurate monthly or quarterly returns, reconciled to your books and filed before the FTA deadline.
VAT refunds
Refund claims prepared with the supporting documents the FTA asks for, to recover excess input tax.
Tax group registration
Forming or amending a VAT tax group for related companies under common control.
Voluntary disclosures and FTA audits
Correcting past errors before the FTA finds them, and supporting you through tax audits.
VAT health checks and training
Reviews of your invoices, contracts and systems, plus practical VAT training for your finance team.
What Changed in UAE VAT in 2026
- No more self-invoicing for reverse charge: from 1 January 2026 you no longer issue tax invoices to yourself for imported goods and services, but you must keep supporting documents.
- Five-year limit for refunds: refund requests must now be made within five years, so older VAT credits need reviewing.
- Input tax and evasion: the FTA can deny input tax where a supply is linked to tax evasion, so supplier checks matter more.
- New penalty rules: Cabinet Decision No. 129 of 2025 applies from 14 April 2026.
- E-invoicing: VAT invoices move to the national e-invoicing system from 1 January 2027 for larger businesses. Read our UAE e-invoicing update.
VAT Penalties to Avoid
- Late registration: AED 10,000.
- Late VAT return: AED 1,000 for the first time, AED 2,000 for a repeat within 24 months.
- Late payment: charged at 14% a year on the unpaid tax under the 2026 rules.
See our comparison of Cabinet Decision 108 of 2021 and 129 of 2025 for the full penalty table.
How We Handle Your VAT Return Filing
- Collect: we gather your sales, purchase and import records for the period.
- Reconcile: we match them to your accounts and check tax codes, reverse charge and blocked input tax.
- Prepare: we draft the return and flag anything unusual before it is filed.
- Approve and file: you review the figures, then we submit the return on EmaraTax.
- Pay and keep records: we confirm the payment amount and deadline, and file the working papers for audit.
Why Choose Hussain Al Shemsi
- Chartered Accountants with VAT, audit and Corporate Tax experience under one roof. Meet our team.
- Up to date with the 2026 VAT amendments, new penalties and e-invoicing.
- Joined-up advice: VAT reviewed alongside your Corporate Tax and accounting.
- Based in Sharjah, serving businesses across all seven emirates.
Frequently Asked Questions
When must a business register for VAT in the UAE?
When taxable supplies and imports have exceeded AED 375,000 in the last 12 months, or are expected to in the next 30 days. Voluntary registration is possible from AED 187,500.
When is the VAT return due?
By the 28th day after the end of each tax period. Most businesses file quarterly; the FTA can assign monthly tax periods.
What is the penalty for filing a VAT return late?
AED 1,000 the first time and AED 2,000 for a repeat within 24 months. Late payment is charged at 14% a year under Cabinet Decision No. 129 of 2025.
Is there a time limit to claim a VAT refund?
From 1 January 2026, refund requests generally have to be made within five years, so older VAT credits should be reviewed.
Can free zone companies register for VAT?
Yes, if they meet the registration threshold. Designated Zones have special VAT rules for goods.
What is a VAT tax group?
Two or more related UAE businesses under common control can register as one taxable person and file one VAT return. Supplies between group members are generally outside the scope of VAT.
How much do your VAT return filing services cost?
It depends on your transaction volume and filing frequency. We give a fixed fee in AED after a short review.
Need Help With VAT?
Talk to our tax team about registration, your next VAT return or a health check of your VAT position.
Official guidance: Federal Tax Authority.
How can we help you?
Get in touch with Hussain Al Shemsi Chartered Accountants for expert auditing, accounting, tax, and advisory services in the UAE.
- +971 50 3636231
VAT Registration
Expert assistance in registering your business for VAT in the UAE, ensuring full compliance with FTA requirements.
VAT Deregistration
Comprehensive support for VAT deregistration, guiding your business from eligibility assessment to final FTA approval
VAT Return Filing
Ensure timely and accurate preparation and submission of your VAT returns, complying with UAE regulations and avoiding penalties.
VAT Audit
Conduct comprehensive assessments of your VAT compliance to identify discrepancies, mitigate risks, and enhance adherence.
VAT Refund
Expert guidance to help you identify eligible VAT refunds, prepare necessary documentation, and navigate the refund process efficiently.
VAT Health Checks
Thorough review of your VAT processes to ensure compliance with UAE regulations, identify risks, and enhance Smoothly.
