Mubarak Al Ketbi, an FTA-certified Tax Agent and Agency, helps businesses follow UAE tax laws with confidence. Our experienced team delivers expert advice and services in financial management, VAT registration, VAT Services in UAE, VAT implementation, accounting, and tax consulting. With skilled Chartered Accountants and tax advisors, we make sure your business meets the right compliance standards.
You can count on Mubarak Al Ketbi for reliable support in financial management and VAT compliance. Let us guide you through the tax challenges and help your business grow in the UAE.
VAT Services in UAE
A 5% value-added tax (VAT) applies to most goods and services in the UAE. Some are taxed at 0% or are exempt if they meet specific conditions. For instance, exports outside the Gulf Cooperation Council (GCC), international transport, healthcare, and education can be zero-rated. Residential real estate, financial services, and local passenger transport may be exempt.
Under UAE VAT rules, some Free Zone transactions may not be taxed. Services within Free Zones are taxed as per the standard VAT laws.
Customs Duties
All imported goods must meet UAE Customs rules. Most goods are taxed at 5% based on cost, insurance, and freight (CIF) value. Items like alcohol and tobacco may have higher rates. Some imports enjoy duty-free access under Free Trade Agreements.
Excise Taxes
Excise tax in the UAE is:
- 100% for tobacco, e-cigarettes, and energy drinks
- 50% for carbonated and sweetened drinks
Municipal or Property Tax
Each Emirate has its own property tax system. Dubai, for example, charges 5% on residential rent (paid by tenants) and 2.5% on commercial rent (paid by owners). A 4% fee is charged on property transfers.
Stamp Taxes
The UAE currently does not charge separate stamp taxes.
Payroll Taxes
There is no personal income tax in the UAE.
Social Security Contributions
Only UAE and GCC nationals pay social security in the UAE. Employers pay 12.5%, employees pay 5%, and the government adds 2.5%. In Abu Dhabi, rates are higher. Expat workers are not subject to these contributions.
VAT Services in Dubai
Dubai adopted VAT at 5% starting January 1, 2018. This has become a key revenue source for infrastructure and public services. Mubarak Al Ketbi offers support for VAT registration, return filing, VAT accounting, and more. These services reduce risks and help keep proper VAT records.
Value Added Tax for UAE Businesses
Businesses pay 5% VAT on most sales. This helps fund government services and reduce reliance on oil income. Using VAT services allows businesses to follow the rules, avoid mistakes, and keep records accurate.
VAT: What is it?
VAT is a tax on goods and services at each sale point. Businesses collect it and pay it to the government. This applies both on the mainland and in Free Zones.
Implication of VAT
VAT is collected in stages:
- Farmers sell to factories and collect VAT.
- Factories sell to manufacturers and get VAT refunds.
- Manufacturers sell to retailers and collect VAT.
- Retailers sell to customers and collect VAT.
- Customers pay the VAT.
VAT is paid at every stage, but the final consumer bears the cost.
VAT Services’ Significance
Accurate records are essential to file VAT on time. A VAT expert improves operations and ensures compliance. Mubarak Al Ketbi supports you in keeping correct records and avoiding penalties.
How can VAT Services in Dubai help your Business?
- Maintaining Compliance: Follow laws and avoid fines
- Efficient VAT Registration: Quick and correct process
- Simplifying VAT Filing: Organized records and timely returns
- Manage VAT Payments: Calculate correct tax and pay on time
- Support for VAT Audits: Help during FTA audits
- Cost Management: Reduce costs by outsourcing VAT work
VAT Rates in Dubai
| Rate Type | VAT Rate |
| Standard Rate | 5% |
| Zero-Rated | 0% |
| Exempt | Nil |
VAT Penalties
Avoid late filings to prevent these penalties:
- AED 10,000 for late registration
- Up to AED 10,000 for late deregistration
- AED 1,000–2,000 for late VAT return
- 2–4% of unpaid tax for late payment
- AED 1,000–2,000 for incorrect submissions
VAT Services
- VAT Registration: Required if income passes AED 375,000
- VAT Returns: Submit returns within 28 days
- VAT Reclaiming: Get refunds for input tax
- Excise Tax: Register for excise tax if needed
- VAT De-Registration: End VAT duties when eligible
- VAT Accounting: Maintain clear VAT records
- VAT Audit: Check for compliance and errors
- Tax Residency Certificate: Prove tax residency in UAE
VAT Registration
If income exceeds AED 375,000 annually, businesses must register. Voluntary registration is allowed from AED 187,500. Apply online via the FTA portal.
VAT Return Filing
Filing VAT returns on time avoids fines. Mubarak Al Ketbi helps you calculate tax, file returns, and manage records.
VAT paid on business expenses may be claimed back. Our team finds eligible transactions and handles paperwork.
VAT Refund Services
Refund services help recover VAT from non-taxable sales. Mubarak Al Ketbi assists with correct filings and faster returns.
VAT Advisory
Experts offer advice on transactions, laws, and planning. Customized support ensures smooth operations.
VAT Compliance Services
Follow laws by registering on time, filing returns, and paying VAT. Professionals at Mubarak Al Ketbi guide you through these steps.
VAT Training
Training helps staff understand VAT rules, returns, and compliance. This improves in-house accuracy and reduces errors.
VAT Consulting Service
Consultants guide you in reducing tax risk and meeting rules. They help with registration, refunds, and planning.
Excise Tax Registration
Excise tax applies to certain products. Mubarak Al Ketbi registers businesses and ensures compliance.
VAT De-Registration Services
De-registration is done through the FTA portal. Our experts manage the process and check your eligibility.
VAT Accounting Services
Accurate accounting is vital for tax compliance. We ensure proper records, timely returns, and reduced risk.
VAT Audit Services
Audits verify VAT data and records. Our auditors review your business to correct issues and avoid penalties.
Tax Residency Certificate
A certificate proves your tax residency in the UAE. It helps avoid double taxation. We manage the full process.
VAT Services for Industries
Different sectors have unique VAT needs:
- Retail: VAT on sales and refunds
- Manufacturing: VAT on materials and finished goods
- Healthcare: Some services are exempt; others are taxed
- Real Estate: VAT on sales and rentals
- E-commerce: VAT on digital sales and invoices
- Startups: Register early to remain compliant
VAT Laws and Regulations
VAT laws set rules on registration, filings, and audits. Thresholds include:
- AED 375,000 for mandatory registration
- AED 187,500 for voluntary registration
Reports must be submitted quarterly or monthly depending on revenue.
VAT Return Filing
Form 201 must be filed online. Include:
- Taxpayer details
- VAT on inputs and outputs
- Net VAT due
Filing on time helps avoid penalties and improves business image.
VAT Assessment
VAT = Output Tax – Input Tax. If input tax exceeds output, businesses get a refund. If not, they owe VAT.
Benefits of Filing VAT Return
- Build trust with partners
- Easier business operations
- Better market image
- Simple compared to other taxes
When to File VAT Return
- Quarterly: Revenue below AED 150 million
- Monthly: Revenue AED 150 million or more
Mubarak Al Ketbi – Your VAT Consultant in UAE
Handling VAT in UAE is simpler with expert support. Mubarak Al Ketbi offers reliable VAT Services in UAE to help businesses comply with tax laws, file accurate returns, and reduce penalties.
Get in touch with Mubarak Al Ketbi today to keep your business VAT-compliant across the Emirates.
