Value Added Tax - VAT
The value-added tax (VAT), which came into effect from January 1, 2018, in UAE, is a consumption based tax which will be applicable at each stage of the ‘supply chain’. That means, any UAE business making a taxable supply of goods and services will have to pay VAT on that supply. The VAT UAE is based on the same concept as followed by the other countries which use this tax system, however, the standard rate is fixed at 5% for all taxable supplies for VAT in UAE.
As per the VAT rules and regulations, some basic services (and goods) like food, public transport, and some healthcare services are exempt from the VAT, while some other services will be taxed at zero percent. You can find out more about VAT-exempt and non-exempt supplies on our blog. The VAT shall be levied at each stage of the supply chain, but there is a concept of input credit through which businesses can claim their taxes back from the government, and the ultimate VAT cost is borne by the end consumers.
How Does VAT Work?
Businesses are charged VAT on goods and services they purchase (input tax). They then charge VAT on the goods and services they sell to end-customers (output tax). The difference between the input tax and output tax is paid to the government.
On top of our compliance service, our team has a comprehensive understanding of all areas of tax, including
Support for VAT registration for your company as individuals or as tax groups
Providing inputs for using VAT compliant software for your company
VAT Consultant Service through meetings and discussions
Advisory Service on call
Handling industry specific issues with precise guidance to comply with the UAE VAT law
Advisory Services with regard to Customs clearance as well as designated zone related issues