Vat & Tax Consultation

The VAT is an expense that applies to the use of all services/products. GCC Government has adopted this taxation system starting from 1st January 2018. It is implemented on goods and services with the exception of food items, healthcare, and education. The standard tax rate is very nominal – 5%. End-user are mostly affected by the implementation of tax however businesses have to make certain changes to their processes and procedures to comply with the legal requirements implemented by the government.

All businesses with annual revenue of Dh 375,000 or more are required to submit their VAT registration in UAE online applications within 30 days of being required to be registering. As per the regulatory Authority Federal Tax Authority Registration (FTA), all businesses in UAE must ensure the recording of their financial transactions, apart from that VAT registration requirements have done and ledgers are updated in time to avoid penalties. Registration will be mandatory in case the revenue limit crosses AED 375,000, if turnover is greater than AED 187,500, but didn’t exceeds AED 375,000 then optional or voluntary registration should be done.