Services we provide
UAE VAT
Our UAE VAT Services include registration, filing, compliance, and advisory support, ensuring businesses manage Value Added Tax effectively and stay aligned with FTA rules aligned with FTA rules.
The United Arab Emirates implemented Value Added Tax (VAT) on January 1, 2018, introducing a 5% indirect consumption tax on most goods and services. This significant fiscal development requires businesses to adapt to new compliance requirements while maintaining operational efficiency. At KVGC, we provide expert VAT consultation services designed to help UAE businesses navigate registration, compliance, refund claims, and ongoing tax management.
Background of VAT in the UAE
The introduction of VAT represents a strategic move by the UAE government to diversify revenue sources and support continued economic development. As a consumption-based tax, VAT is ultimately paid by the end consumer, while businesses act as intermediaries responsible for collecting and remitting taxes to the Federal Tax Authority (FTA).
UAE VAT Rates and Categories
The standard VAT rate in the UAE is 5%, applied to most goods and services. The VAT framework recognizes several distinct categories:
Standard-Rated Supplies (5%)
- Retail products and consumer goods
- Professional services and consulting
- Hotel accommodations and entertainment
- Commercial property transactions
Zero-Rated Supplies (0%)
- Exports outside GCC countries
- International transportation services
- Certain healthcare and educational services
- Investment precious metals
Exempt Supplies
- Residential property rentals
- Local passenger transport
- Certain financial services
- Bare land sales
VAT Registration Requirements
Businesses must register for VAT if their taxable supplies exceed AED 375,000 annually. Voluntary registration is available for businesses with supplies between AED 187,500 and AED 375,000. The registration process involves:
- Submitting application through FTA portal
- Providing business documentation and financial records
- Receiving Tax Registration Number (TRN)
- Implementing VAT-compliant accounting systems
VAT Compliance and Management
- Issue tax invoices for all taxable supplies
- Maintain complete VAT accounting records
- File regular VAT returns (typically quarterly)
- Pay due taxes within specified deadlines
- Claim eligible input tax refunds
KVGC VAT Services
- VAT registration assistance
- Compliance management and return filing
- Input tax recovery optimization
- VAT health checks and audits
- FTA representation and dispute resolution
- Ongoing VAT advisory services
Why Choose KVGC for VAT Services?
- Expert guidance from qualified tax professionals
- Customized solutions for your business needs
- Proactive compliance management
- Cost-effective tax optimization strategies
- Continuous regulatory updates and support
Our team ensures your business meets all VAT obligations while maximizing recovery opportunities and minimizing compliance risks. Contact KVGC today for comprehensive VAT solutions tailored to your business requirements.
Frequently Asked Questions
Certain supplies are exempt from VAT in the UAE, meaning they are not subject to VAT. These include: Residential properties (leases or sales after the first supply) Certain financial services (mainly those that do not charge an explicit fee) Local passenger transport services (e.g., taxis, buses, and metro services)
Input tax is the VAT paid on goods and services purchased by a business for its operations. Businesses can claim input tax credits to offset the VAT they collect from their customers.
Businesses in the UAE must maintain clear and accurate records to comply with VAT regulations. These records include: Tax invoices issued and received Credit and debit notes VAT returns filed VAT account details Import and export documents Financial statements and records of fixed assets
Businesses in the UAE must maintain clear and accurate records to comply with VAT regulations. These records include: Tax invoices issued and received Credit and debit notes VAT returns filed VAT account details Import and export documents Financial statements and records of fixed assets