Value Added Tax (VAT) was introduced in the UAE from January 1, 2018. If you are new to the UAE and unaware about the type of tax it is, how you would get affected by it and whether you can receive a refund on VAT.
What is VAT?
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.
How much is VAT?
The rate at which VAT is charged is 5% of the transaction cost is taxable under VAT.
When should I register for VAT?
Companies that have an annual turnover above Dh375,000 have to register for VAT mandatorily.
Companies that have a turnover under Dh375,000 but above Dh187,500 can voluntarily register for VAT.
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.
Our VAT assistance service provides VAT registration Services
Generating TRN number
Annual VAT Filings
Please get in touch with us for more information on what categories are exempted from VAT
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