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What is Value Added Tax (VAT)?

Value Added Tax (VAT) is a consumption-based tax applied to most goods and services at different stages of their journey—from production to the final sale. Although businesses calculate and collect the tax, the ultimate burden falls on the consumer. Companies simply act as collectors on behalf of the government, making VAT an essential part of the country's financial system.

The UAE introduced VAT on 1 January 2018 at a standard rate of 5%. This move aligned the nation with international tax standards and helped diversify government revenue beyond oil. Today, VAT applies to a wide range of products and services, while essential categories like certain healthcare, education, and financial services remain exempt or zero-rated to protect consumers.

Businesses that meet the mandatory threshold must register for VAT, charge it on their sales, and maintain proper records. They are also allowed to reclaim VAT paid on eligible business expenses, reducing their overall tax burden. To stay compliant, companies must file VAT returns with the Federal Tax Authority on time. Accurate reporting helps avoid fines, ensures smooth operations, and strengthens financial transparency across the business landscape.

VAT Eligibility Criteria

UAE businesses with taxable turnover between AED 187,500 and AED 375,000 can choose voluntary VAT registration. This helps them reclaim input VAT and prepare for future growth.

Even businesses with turnover below AED 187,500 can register voluntarily. They must show a valid business reason, like enhancing credibility or handling cross-border transactions efficiently.

VAT Eligibility Criteria
VAT Eligibility Criteria

VAT Eligibility Criteria

UAE businesses with taxable turnover between AED 187,500 and AED 375,000 can choose voluntary VAT registration. This helps them reclaim input VAT and prepare for future growth.

Even businesses with turnover below AED 187,500 can register voluntarily. They must show a valid business reason, like enhancing credibility or handling cross-border transactions efficiently.

Why Choose VAT Consultants?

Why Choose VAT Consultants?

Expert VAT consultants in Dubai, like Rizmona, review your invoices, verify transactions, and guide you through complex cross-border VAT issues. Expert consultants help businesses of all sizes implement VAT software and maintain accurate books, ready for audits.

Rizmona’s dedicated consultants simplify reporting, manage FTA queries, and stay updated on quarterly changes, ensuring your business remains fully compliant with confidence and minimal stress.

Why Choose VAT Consultants?

Why Choose VAT Consultants?

Expert VAT consultants in Dubai, like Rizmona, review your invoices, verify transactions, and guide you through complex cross-border VAT issues. Expert consultants help businesses of all sizes implement VAT software and maintain accurate books, ready for audits.

Rizmona’s dedicated consultants simplify reporting, manage FTA queries, and stay updated on quarterly changes, ensuring your business remains fully compliant with confidence and minimal stress.

What Is Voluntary Filing?

Voluntary VAT lets UAE businesses register before it’s mandatory. If turnover is between AED 187,500 and 375,000, companies can reclaim input VAT and build credibility with partners and the FTA.

Voluntary registration prepares businesses for growth and avoids delays or cash flow issues. Dubai VAT consultants assess eligibility, analyze impact, and file accurate returns for full compliance from day one.

What Is Voluntary Filing?
What Is Voluntary Filing?

What Is Voluntary Filing?

Voluntary VAT lets UAE businesses register before it’s mandatory. If turnover is between AED 187,500 and 375,000, companies can reclaim input VAT and build credibility with partners and the FTA.

Voluntary registration prepares businesses for growth and avoids delays or cash flow issues. Dubai VAT consultants assess eligibility, analyze impact, and file accurate returns for full compliance from day one.

Zero-Rated vs Exempt Supplies

Zero-Rated Supplies:

Zero-rated goods and services are taxed at 0%. Companies can reclaim input VAT on related expenses, which improves cash flow. Common examples are exports and some healthcare or education services under UAE law.​

Exempt Supplies:

Exempt supplies have no VAT charge and companies cannot reclaim input VAT on expenses linked to them. Financial services, residential property rentals, and select insurance types often fall in this category.

Top Benefits of Expert VAT Consultancy

Reliable FTA Compliance

Reliable FTA Compliance

All statutory VAT filings are handled on time, helping your business avoid penalties and FTA disputes.​

Maximized VAT Refunds

Maximized VAT Refunds

Expert consultants review all transactions to ensure every eligible refund and input tax reclaim is secured.​

Customized Industry Guidance

Customized Industry Guidance

Get VAT strategies tailored for your sector—retail, real estate, e-commerce, healthcare, and more.​

Prompt Dispute Resolution

Prompt Dispute Resolution

Receive fast and effective assistance with FTA inquiries, appeals, or disputes related to VAT submissions.​

Reduced Audit Stress

Reduced Audit Stress

Accurate documentation and report checks make FTA audits smooth, minimizing compliance risks.​

Clear Recordkeeping & Reporting

Clear Recordkeeping & Reporting

Your books and VAT reports stay audit-ready with clean, transparent workflows set up by specialists.​

Documents Required for VAT Registration in Dubai

01.1. Trade & Formation Documents

  • Trade licence, certificate of incorporation, and articles or MOA showing legal setup and ownership.

02.2. Authority & Signatory Proof

  • Power of Attorney or board resolution confirming the authorized signatory for FTA dealings.

03.3. Identity Documents

  • Passport and Emirates ID copies for owners, partners, and authorised signatories for identity checks.

04.4. Business Activity Details

  • Clear description of business activities, product or service lines, and any special regulated sectors.

05.5. Historical Turnover Evidence

  • Last 12 months of sales invoices and statements to prove taxable turnover and VAT registration threshold.

06.6. Bank & Contact Information

  • Bank account details (IBAN, bank letter), plus phone, email, and full business address in Dubai/UAE.

07.7. Customs & GCC Information

  • Customs registration (if applicable), GCC customer/supplier details, and GCC trade profile.

08.8. Turnover & Trade Projections

  • Expected turnover for next 30 days and estimated one‑year import/export values with GCC countries.

VAT Consultancy vs In‑House VAT Management

Aspect
VAT Consultancy
In‑House VAT
Expertise
Certified VAT specialists​General finance team​
Compliance
Proactive checks, fewer fines​Higher risk of errors​
Cost Model
Flexible fees, pay as you need​Fixed salaries and benefits​
Tools & Tech
Advanced VAT and FTA tools​Basic software or sheets​
Time Demand
Frees management time​Management reviews every return​
Scalability
Easy to scale with activity​Scaling needs more hiring​
Advisory
Strategic VAT and tax advice​Limited advisory capacity​
FTA Audits
Full audit support and liaison​Internal team faces FTA alone​

Get Expert VAT Help in Dubai

Book Your Compliance Consultation Today!