Question 1

Does my business need to register for VAT?

Accepted Answer

You must register for VAT with the Federal Tax Authority (FTA) if your taxable supplies and imports exceed AED 375,000 in any 12-month period. Voluntary registration is available if your turnover exceeds AED 187,500, and can be beneficial if your customers are VAT-registered businesses and you want to recover input tax. We can review your position and handle the registration process on your behalf.

Question 2

What VAT rate applies in the UAE?

Accepted Answer

The standard VAT rate is 5%. Certain supplies are zero-rated — including most exports, international transport, and some healthcare and education services — which means VAT is charged at 0% but the supplier can still recover input tax. Other supplies are exempt, such as most residential property leases and bare land, where no VAT is charged and no recovery is available. Getting this classification right is important, and we can advise on the correct treatment for your specific transactions.

Question 3

How often do I need to file a VAT return?

Accepted Answer

Most businesses file quarterly VAT returns, with the return and any payment due within 28 days of the end of the tax period. The FTA may assign a monthly filing cycle to larger businesses. Returns must be submitted through the FTA's EmaraTax portal, and late filing or payment attracts administrative penalties. We prepare and submit VAT returns for our clients and monitor deadlines on their behalf.

Question 4

What happens if I make an error on a VAT return?

Accepted Answer

Minor errors below AED 10,000 net can be corrected on your next VAT return. Larger errors must be disclosed to the FTA through a voluntary disclosure. Making a voluntary disclosure before the FTA identifies an error typically results in reduced penalties compared to errors discovered during an audit. We recommend addressing any known errors promptly rather than hoping they go unnoticed.

Question 5

Can free zone companies recover UAE VAT?

Accepted Answer

It depends on whether the free zone is a Designated Zone under UAE VAT law. Certain supplies between businesses within Designated Zones are treated as outside the scope of UAE VAT. However, supplies from a Designated Zone into mainland UAE are generally treated as imports. The rules are complex and vary by transaction type — we can map your specific supply chain and advise on the correct treatment.

Question 6

Can you help with VAT registration and filing in the UAE?

Accepted Answer

Absolutely. We assist with VAT registration, preparation, and timely filing, ensuring compliance with UAE Federal Tax Authority regulations.