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Home Services VAT in the UAE: Registration, Rates, and Compliance

VAT in the UAE

Value Added Tax (VAT) in the UAE was introduced in 2018 and has become one of the key tools for regulating business. All companies operating in the country are required to register for VAT once the prescribed turnover threshold is reached. Failure to comply leads to fines, account freezes, and serious compliance issues. MIRAD provides VAT registration, bookkeeping, and declaration filing services with guaranteed accuracy and timely submission.

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Who Must Register for VAT?

  1. Companies with an annual turnover above AED 375,000 — mandatory registration.
  2. Companies with a turnover from AED 187,500 — voluntary registration.
  3. Non-residents providing services in the UAE.
  4. Corporate groups forming a VAT Group.
  5. Companies engaged in import and export of goods or services.

VAT Rates in the UAE

  • 5% — standard rate.
  • 0% (zero-rated) — exports, international transport, education, and healthcare (subject to conditions).
  • Out of scope — transactions not subject to VAT (e.g., non-economic activities).

MIRAD VAT Services

  • Company registration with the FTA and obtaining a TRN.
  • Preparation and filing of quarterly VAT returns.
  • Verification of invoices and contracts for VAT compliance.
  • Advisory on transaction classification and applicable rates.
  • Preparation of adjustments and responses to FTA queries.
  • Support with notices, fines, and audits.
  • Registration and management of VAT groups.
  • Staff training on VAT documentation.

Penalties for Non-Compliance

  • Fines from AED 10,000 to AED 50,000 for late registration.
  • Daily penalties for delayed filing of VAT returns.
  • Corporate account freezes.
  • Refusal to renew business license.
  • No access to banking products or financing.

HowTo: VAT Registration and Compliance in the UAE

  1. Assess your company’s turnover and determine VAT registration requirements.
  2. Prepare documents: trade license, MOA, tenancy contract, bank statements.
  3. Register with the FTA system and obtain a TRN (Tax Registration Number).
  4. Set up accounting under IFRS standards, separating taxable and exempt supplies.
  5. Issue invoices with correct VAT rate details.
  6. Submit quarterly VAT returns through the FTA portal.
  7. Keep all records for at least 5 years for possible inspections.
VAT Support in the UAE by MIRAD

We register companies with the FTA, prepare and submit VAT returns, and protect clients from fines and audits.

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Why Choose MIRAD

  • Over 100 clients supported annually with VAT compliance.
  • Experience with e-commerce, logistics, consulting, and investment firms.
  • Guaranteed deadlines and protection from fines.
  • Reports prepared according to international IFRS standards.
  • Support in both Russian and English.
  • Comprehensive services: VAT, Corporate Tax, AML/KYC.

FAQ: VAT in the UAE

❓ Is VAT registration mandatory if turnover is below AED 375,000?
✅ No, but voluntary registration is available from AED 187,500.

❓ How often must VAT returns be filed?
✅ Usually quarterly, but exceptions may apply based on FTA decisions.

❓ Do export services attract VAT?
✅ In most cases, they are zero-rated (0%) if conditions are met.

❓ How long should VAT records be kept?
✅ At least 5 years — as required by law.

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