VAT, or Value Added Tax, is a consumption tax levied on goods and services in the UAE at a standard rate of 5%. It was introduced to diversify the country’s economy and is applied at each stage of the supplychain, with the final consumer bearing the cost. Businesses are responsible for collecting this tax on behalf of the government.

VAT registration in the UAE is a mandatory process for any business with taxable supplies and imports exceeding AED 375,000 over the past 12 months, or if it is anticipated to exceed that threshold in the next 30 days.

The registration process is completed online through the Federal Tax Authority (FTA) portal. For businesses in Dubai, this is referred to as VAT registration Dubai, although the process is federal.

Given the complexities of tax law, many companies opt for professional VAT services in Dubai. These services are designed to simplify your obligations and ensure full compliance. A VAT consultant can help you with:

By utilizing these services, businesses can avoid common errors and costly penalties, allowing them to focus on their core operations.