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Value Added Tax (VAT) is an indirect tax applied at each stage of the supply chain. While the end customer bears the cost, registered businesses are responsible for collecting and remitting VAT to the Federal Tax Authority (FTA) effectively acting as intermediaries in the tax system.
VAT was introduced in the UAE on 1st January 2018, and since then, every business operating in the UAE must ensure accurate VAT compliance. This affects financial reporting, accounting systems, pricing, invoicing, contracts, and internal workflows.
To remain compliant, businesses often need to revise their bookkeeping, accounting processes, ERP systems, and staff training. ATAF ensures these adjustments are implemented smoothly and accurately.
We provide end-to-end VAT Compliance Services, including VAT Registration, Return Filing, VAT Advisory, and Refund Support.
Businesses may be required to register for VAT depending on their turnover and business activity.
Mandatory VAT Registration:
You may register if:
Voluntary registration is beneficial for startups, as it allows them to recover VAT paid on setup expenses.
However, errors in the registration application can cause delays, penalties, or rejection of your Tax Registration Number (TRN).
ATAF ensures correct documentation and seamless TRN approval, avoiding any compliance risks.
All VAT-registered businesses in the UAE must file their VAT Return Form 201 periodically (monthly or quarterly) depending on their FTA-assigned tax period.
Late filing or incorrect returns can result in severe penalties.
Penalty for Late VAT Payment
Avoiding last-minute filing ensures time to review, correct, and optimize VAT positioning.
Implementing VAT correctly requires clear understanding of your:
We ensure your business remains compliant while optimizing cash flow.
A VAT refund can be claimed when the input VAT (paid on purchases) is higher than the output VAT (charged on sales).
The FTA reviews the refund request, verifies documents, and may request clarifications.
A straightforward case may take up to 20 business days, while complex cases may require additional time.
ATAF manages:
The Federal Tax Authority’s web portal (EMARA Tax) facilitates online VAT registration in the UAE for obtaining the Tax Registration Number (TRN). ATAF's provides services for both VAT registration and Tax Group registration services. A business is required to seek VAT registration when its taxable supplies or imports exceeding the mandatory registration threshold of AED 375,000. Additionally, a business has the option to register for VAT voluntarily if the combined value of its taxable supplies, imports, or taxable expenses exceeds the voluntary registration threshold of AED 187,500
VAT, as a general consumption tax, is applied at 5% to all transactions of goods and services unless specifically exempted in Article 46 of the Federal Decree-Law No. (8) of 2017 on Value Added Tax or subject to a rate of 0% as per Article 45 of the Federal Decree-Law.
Every seller registered for VAT is required to issue a tax invoice when selling taxable goods or services. There are two types of tax invoice under the VAT decree, one is Simplified tax invoice and the other is full tax invoice. A simplified tax invoice can be raised by a seller if the recipient of services/goods is unregistered (B2C) or the consideration for the supply doesn’t exceed AED 10,000. A detailed invoice needs to have all the information as menitoned in the Article 59 of the Executive regulation.
The standard tax periods for VAT return are as follows:
Common challenges faced during the VAT registration process in Dubai include incomplete documentation, difficulties in navigating the online application system, and understanding specific requirements. The FTA is very specific and if the required details are not shared then it can be rejected after issuing queries. BCL Globiz can assist in overcoming these challenges by providing professional guidance, ensuring accurate documentation, and facilitating a smooth VAT registration process.
Let us manage your accounting while you focus on running your business efficiently.
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