UAE has implemented VAT w.e.f 1st Jan 2018 at a standard rate of 5%. Federal Tax Authority (FTA) is the government entity responsible for implementation and enforcement of VAT in UAE.

Value Added Tax avoids the cascade effects of sales tax by taxing only the value added at each stage of production. Value Added Tax is assessed and collected on the value of goods or services that have been provided every time there is a transaction of Sales or purchase. The seller charges VAT to the buyers, and the seller pays this VAT to the authority.

In this VAT system, 5% of the goods and services price is charged as tax at every stage of the supply chain. There are a few goods and services on which 0% VAT is charged, and only a few are wholly exempted from the taxation system. Therefore, your industry will be placed amongst these three categories based on the VAT system- on which 5% VAT is charged, 0% VAT is charged, and VAT is exempted.

We can assist with all aspects of VAT including VAT compliance reviews, VAT Return, VAT refund, VAT audit, Voluntary disclosure and update on any changes that may affect your particulars Sector. We can be your legal representative by directly dealing with the FTA.