When did VAT start in the UAE?

VAT began on 1 January 2018 at a 5% rate.

Do all businesses need to register for VAT?

Only those meeting the AED 375,000 threshold must register.

What happens if a company doesn’t file VAT on time?

It may face fines and penalties from the FTA.

Can VAT consultants help with deregistration?

Yes, they handle deregistration process smoothly.

How do VAT consultants reduce business risks?

They check compliance, avoid mistakes, and ensure accurate filings.

VAT Consultancy Services in UAE 🥇

VAT Consultancy Services in UAE

The UAE introduced Value Added Tax (VAT) on 1 January 2018 at a 5% rate. This tax gave the government a new source of income to fund public services and reduce dependency on oil revenue. VAT applies to most goods and services, and businesses must follow the rules to stay compliant.

What is VAT?

VAT means Value Added Tax. It is charged on goods and services at each step of supply. The final consumer bears the cost, while businesses collect and pay it to the government. A taxable supply includes goods or services taxed at 5% or 0%. Imports are also considered taxable if they would be taxable inside the UAE.

Services Offered by VAT Consultants

A professional VAT consultant helps businesses manage VAT requirements and stay compliant. Common services include:

VAT compliance check.
Filing VAT returns and payments.
Risk identification and solutions.
Tax planning opportunities.
Accounting and bookkeeping.
VAT registration and deregistration support.
Maintaining proper records for audits.

VAT Registration Process

There are two main VAT registration types:

Mandatory Registration: For businesses with taxable supplies over AED 375,000.
Voluntary Registration: For businesses with supplies above AED 187,500 but below the mandatory threshold.

Foreign companies must register if they make taxable supplies in UAE.

How to Register for VAT

Businesses create an account on the FTA e-Services portal. They can register online and submit documents easily. The portal also allows return filing and online payments anytime.

Why You Should Hire a VAT Consultant

Hiring a VAT consultant saves time and ensures compliance. Consultants know UAE VAT rules and help avoid mistakes. Here’s why they’re valuable:

Better Knowledge: Experts understand VAT law and rates.
Accuracy: They ensure every VAT filing is correct.
Industry Experience: They prevent common errors in registration and filing.
Time Saving: Businesses save hours spent on tax calculations.
Risk Reduction: Consultants identify and minimize compliance risks.
Improved Financial Process: They help businesses plan tax efficiently.

Responsibilities of a VAT Consultant

A VAT consultant is responsible for:

Keeping proper accounting records.
Filing VAT returns on time.
Ensuring compliance with Federal Tax Authority rules.
Reviewing invoices for FTA compliance.
Advising on VAT impact and future planning.

Benefits of Hiring Mubarak Al Ketbi (MAK) Auditing

Mubarak Al Ketbi (MAK) Auditing helps businesses in VAT registration, filing, and compliance. Our team offers expert advice to reduce errors, improve tax planning, and save time. With our support, you can focus on growing your business while staying compliant.

What Can Help – Mubarak Al Ketbi (MAK) Auditing

Mubarak Al Ketbi (MAK) Auditing provides VAT services including registration, filing, compliance checks, and VAT impact studies. We ensure your business stays legally sound and financially safe. After all, forewarned is forearmed.

For more information visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
Or contact/WhatsApp us: +971 50 276 2132

FAQs VAT Consultancy Services in UAE 🥇

What is a tax loss in UAE corporate tax?

tax loss is when your business deductions are more than your taxable income, making your taxable income negative.

How much of my tax loss can I use each year?

You can use up to 75% of your taxable income in a year to set off tax losses. The rest is carried forward.

Can I transfer tax losses to another company?

Yes, you can transfer losses to another UAE company if you meet the 75% ownership rule and both companies have the same financial year.

What happens if the ownership of my company changes?

You can only use tax losses if the same person owns at least 50% from the loss year to the year you use it, and the company keeps doing similar business.

Can I use tax losses from before corporate tax started?

No, you can’t use losses from before corporate tax was introduced in June 2023.