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VAT Compliance

Value Added Tax (VAT) in UAE

The UAE introduced Value Added Tax (VAT) to diversify government revenue and modernize its fiscal system. Understanding the regulations and ensuring compliance helps businesses avoid penalties and maintain credibility. At BigBiz Consultants, we provide full-service guidance on VAT registration, filing, compliance, and advisory—so your business remains compliant, efficient, and growth-focused.

What Is VAT in the UAE?

VAT is a consumption tax imposed on most goods and services at each stage of the supply chain where added value is created. In the UAE, the standard VAT rate is 5%, applied on most transactions unless specifically exempt or zero-rated under UAE VAT law.

Key VAT Principles & Regulations
  • All taxable supplies of goods and services carried out in UAE are subject to VAT unless they are exempt or zero-rated.
  • Registered businesses must issue VAT tax invoices and maintain detailed records for at least 5 years.
  • Input tax deduction is allowed on business expenses, provided valid invoices are maintained.
  • VAT returns must be submitted to the Federal Tax Authority (“FTA”) by the designated deadlines (normally quarterly).
VAT Registration
  • You must register for VAT if:
  • Your annual taxable supplies (turnover) exceed the mandatory registration threshold as specified by the FTA.
  • You anticipate that your taxable supplies will exceed the threshold in the next 30 days.
  • Optional registration is available for businesses below the threshold that wish to reclaim input VAT.
Our VAT Services

At BigBiz Consultants, we offer a comprehensive suite of services to keep your business VAT-compliant and efficient:

1. VAT Advisory & Planning
  • VAT Advisory & Planning
  • Advice on supply chain, contracts, pricing and cost structure
2. VAT Registration
  • Preparing and submitting application documents
  • Liaising with the FTA
3. VAT Compliance & Filing
  • Preparing tax invoices, bookkeeping per VAT regulations
  • Calculating VAT liability and preparing returns
  • Filing VAT returns on time
4. Input VAT Recovery
  • Identify eligible expenses
  • Ensure invoicing compliance
  • Claim refunds or offset input VAT correctly
5. VAT Audit Support & Dispute Resolution
  • Preparing documentation for FTA audits
  • Representing clients in case of disputes or FTA enquiries
6. Training & Process Integration
  • Employee training on VAT procedures
  • Implementation of VAT-compliant billing, accounting, and internal controls
Benefits of Compliance
  • Benefits of Compliance: Complying on time helps you avoid fines and interest from the FTA.
  • Improved Cash Flow: Proper VAT planning and input recovery improves liquidity.
  • Better Financial Credibility: Transparent VAT records enhance reputation with stakeholders.
  • Operational Efficiency: Streamlined processes reduce errors and audit risks.
  • Cost Savings: Strategic advice can reduce VAT liabilities and uncover savings.
Frequently Asked Questions (FAQs)
A: The standard rate is 5%.
A: Yes. Certain goods/services are either exempt from VAT or taxed at 0% under specific conditions per UAE law.
A: Businesses are required to retain VAT invoices, accounting records etc. for 5 years.
A: Usually quarterly, but deadlines depend on your registration category as per FTA guidelines.

A: Yes, if they wish to benefit from input tax recovery even if turnover is below the mandatory registration threshold.

Get Started with BigBiz Consultants

Let us take the burden of VAT off your shoulders. Whether you are registering for the first time, need ongoing compliance, or auditing support, our team is ready to help.

 

📞 Contact us today– schedule a free consultation to discuss your VAT needs, clarify your obligations, and secure your business’s financial compliance in the UAE.

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Phone

+971569300454

Email

Info@bigbizconsultants.com

Location

Deira , Dubai, United Arab Emirates

BigBiz Consultant is a trusted business advisory firm in Dubai, specializing in company setup, consultancy, HR, IT, and organizational solutions. We help entrepreneurs and corporations simplify operations, stay compliant, and achieve sustainable growth in the UAE.

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