VAT in the UAE: What Every Business Should Know

Simplify VAT compliance and avoid costly mistakes.

Since 2018, the UAE has had a Value Added Tax (VAT) system in place. It’s a 5% tax added to most goods and services. If your business is operating in the UAE, it’s important to know when and how to register for VAT — and how to stay compliant.

🔹 When is VAT Registration Required?

• Mandatory if your annual revenue exceeds AED 375,000
• Voluntary if revenue is over AED 187,500 but below the threshold

🔹 What Does VAT Compliance Involve?

• Registering your business on the FTA portal
• Charging 5% VAT on invoices
• Filing quarterly VAT returns
• Keeping records of sales, purchases, and expenses

🔹 What Happens if You Don’t Comply?

• Fines starting from AED 10,000
• Audit risks and legal complications

DownTown Accounting offers full VAT services, from registration and filing to audit support and portal management.

👉 Let us handle your VAT – [Get in touch today]