VAT in UAE
GCC countries have decided to implement Value Added Tax in the entire region through a treaty signed by all member countries. UAE has already implemented the VAT laws and regulations with effect from January 1, 2018, along with Kingdom of Saudi Arabia.
Like any new legislation, there are always challenges that businesses face while readying themselves for VAT. We have an exclusive team of trained VAT Consultants in Dubai/UAE. Ably supported by our international team, the UAETAXSERVICES team will assist you to steer your business smoothly through the new tax laws.
Everything you need to know about VAT
Applicability
- If your annual turnover exceeds the mandatory threshold limit of AED 375,000, then you are liable to pay tax.
- Optional registration threshold limit is AED 187,500/- per year, where, any business person can voluntarily register for VAT and continue with the normal compliance process.
Rates of VAT
The types of rates applicable are:
- Standard rate
- Businesses registered under UAE VAT will be levied 5 percent tax.
- Zero rate
Zero-rated Industries
- Exports of goods and services outside the UAE
- International transportation, and related supplies
- Supplies of the certain sea, air and land means of transportation (such as aircrafts and ships)
- Certain investment grade precious metals (e.g. gold, silver, of 99% purity)
- Newly constructed residential properties, that are supplied for the first time within 3 years of their construction
We will guide your Finance and Accounts team and update them with up-to-date progress concerning VAT. Additionally, our VAT consultants in Dubai will assist your team in developing your internal VAT operations, involving finance management and bookkeeping operations, in tune with the VAT system requirements.
Areas exempted from VAT
- Supply of certain financial services
- Residential properties – sale and lease
- Bare land – sale and lease
- Local passenger transport
VAT Services we offers in UAE
UAETAXSERVICES is equipped with a team of thriving Vat consultants in Dubai who can help your business overcome expected roadblocks such as lack of familiarity with VAT rules & regulations, structure and compliance issues, lack of resources (availability of experts and competent staff) and lack of a robust book keeping system.
Our special VAT services in Dubai, UAE involves providing an understanding of the Tax Laws and Executive Regulations, understanding your business model and evaluation of VAT’s impact on your business, providing inputs using VAT compliant software, exclusive VAT bookkeeping assistance, helping you to prepare and execute all VAT related communication to your trade partners and providing strategic inputs for conducting your business in the post-VAT age.