The introduction of Value Added Tax (VAT) in the UAE in 2018 marked a significant shift in the business landscape. With a standard rate of 5%, VAT applies to a wide range of goods and services, making compliance a necessary aspect of commercial operations for companies of all sizes.

Navigating VAT regulations can be challenging. Errors in filing or missed deadlines may result in substantial penalties. KVGC offers specialized VAT services throughout Dubai and the UAE, providing seamless, reliable, and fully compliant tax management.

Our team at KVGC consists of experienced auditors, accountants, and tax consultants operating from Dubai. We have supported numerous UAE businesses in managing their VAT and broader tax obligations effectively.

Understanding VAT in the UAE

Value Added Tax (VAT) is a consumption tax levied on the supply of most goods and services within the UAE. Implemented on January 1, 2018, the tax is set at a standard rate of 5%. Businesses along the supply chain act as collectors of the tax, which is ultimately borne by the end consumer but remitted to the Federal Tax Authority (FTA) by registered entities.

This means that VAT is included in the selling price of taxable items. Although the consumer pays the tax, businesses are legally responsible for its accurate calculation, collection, and submission to the FTA.

VAT Applicability

• Goods and services supplied within the UAE
• Imported products and digital services
• Certain transactions within and between Free Zones
• International trade, with specific conditions for exports and imports

Obligations for VAT-Registered Businesses

1. FTA Registration

Businesses exceeding the mandatory revenue threshold must register with the FTA and obtain a Tax Registration Number (TRN).

2. VAT Charging

VAT-registered entities must apply the 5% tax on taxable supplies and issue tax-compliant invoices.

3. Record Keeping

Maintain accurate financial and tax records, including sales and purchase ledgers, for a minimum of 5 years (extendable to 15 years in certain cases).

4. Periodic VAT Return Filing

Submit regular VAT returns—typically quarterly or monthly—as specified by the FTA.

5. Timely VAT Payment

Remit all collected VAT to the FTA within the stipulated deadlines to avoid penalties.

Benefits of Professional VAT Services

Managing VAT in-house can be complex and risky. Outsourcing to experts allows you to:

• Remain fully compliant with FTA regulations
• Avoid penalties and legal complications
• Ensure accurate and timely filing
• Maintain audit-ready accounts
• Maximize eligible input tax recoveries

Ideal Candidates for VAT Services

• Businesses with annual taxable supplies exceeding AED 375,000
• Entities with revenues above AED 187,500 opting for voluntary registration
• Companies involved in import/export or supplying taxable services
• Businesses looking to recover input VAT
• Those required to file periodic VAT returns

Comprehensive VAT Service Offerings

1. VAT Registration (Mandatory & Voluntary)

Businesses meeting the revenue thresholds must register for VAT. The process involves document preparation, application submission, and TRN acquisition. KVGC simplifies this process, ensuring smooth and efficient registration.

2. VAT Return Filing

Regular and accurate filing of VAT returns is critical. We manage the end-to-end process, from data reconciliation to final submission, minimizing errors and ensuring compliance.

3. VAT-Compliant Accounting

Maintaining VAT-aligned books is essential for compliance and financial clarity. We offer dedicated accounting services to ensure your records meet FTA standards.

4. VAT Reconsideration Requests

In case of penalties or disputed decisions, our team assists in preparing and submitting reconsideration requests to the FTA with supporting evidence and legal grounds.

5. VAT De-registration

When your business ceases to qualify for VAT, we guide you through the de-registration process, including final returns and communication with the FTA.

6. VAT Health Check & Audit Support

Proactive compliance reviews help identify gaps and mitigate risks. We also provide representation and support during FTA audits.

7. VAT Advisory & Training

We offer customized training sessions for finance and operational teams, ensuring in-house awareness and proper VAT handling across your organization.

8. VAT Refund Claims

Our experts identify refund opportunities and manage the entire process—from application to disbursement—for eligible input VAT and other refundable scenarios.

Why Choose KVGC?

• Deep expertise in UAE VAT legislation
• End-to-end VAT compliance solutions
• Efficient and deadline-driven service delivery
• Full adherence to FTA guidelines
• Competitive and clear pricing models
• Customized tax planning and support

Partner with KVGC for Hassle-Free VAT Management

Simplify your VAT responsibilities with a trusted partner.

KVGC is committed to ensuring your VAT processes are accurate, compliant, and stress-free.