VAT that files on time and holds up under inspection.
Five per cent sounds simple until you're dealing with zero-rating, reverse charge, designated zones and a refund claim that's been sitting for months. We run VAT as an ongoing discipline, not a quarterly scramble.
Overview
VAT has applied in the UAE since 2018 at a standard rate of 5%. Registration is mandatory once taxable supplies and imports exceed AED 375,000 over the preceding twelve months, with voluntary registration available from AED 187,500.
Most VAT problems we're asked to fix are not disputes about the law. They're record-keeping failures: tax invoices that don't meet the requirements, input tax recovered without evidence, exports treated as zero-rated without the documentation to prove it, or reverse-charge entries never made at all. Each one is small. Together they turn an inspection into a penalty.
We take the return cycle end-to-end and keep the underlying records in the state an FTA inspector expects to find them.
What's included
Every engagement is scoped to what you actually need. This is the full range we cover:
Who this is for
Trading and retail businesses, service exporters, e-commerce sellers, real estate and construction companies, and any business recovering significant input tax.
Recovering input VAT without a compliant tax invoice is one of the most common findings in an FTA review, and it is recovered from you with penalties on top. A quarterly document check costs a fraction of that.
How the engagement runs
- Registration & setup. We confirm your registration obligation, register you with the FTA, and configure your accounting system to capture VAT correctly at source.
- Transaction review. Each period we review the ledgers for treatment errors: zero-rating, exempt supplies, blocked input tax and reverse charge.
- Return preparation. We prepare the return with a reconciliation back to your accounts, so every box ties to something you can show.
- Filing & retention. We file before the deadline and archive the supporting file, which is what turns an inspection into a formality.
Key VAT parameters
| Item | Position |
|---|---|
| Standard rate | 5% on most goods and services |
| Mandatory registration | Taxable supplies exceeding AED 375,000 in 12 months |
| Voluntary registration | Taxable supplies or expenses exceeding AED 187,500 |
| Return period | Quarterly for most businesses; monthly for larger registrants |
| Filing deadline | Within 28 days of the end of each tax period |
VAT Services, answered.
The questions we're asked most often on this service.
Registration is mandatory once your taxable supplies exceed AED 375,000 over the preceding 12 months, or where you expect to cross that threshold in the next 30 days. You can register voluntarily from AED 187,500 of taxable supplies or expenses, which is often worth doing if you are incurring input VAT you would otherwise absorb. The 12 month test is rolling, not annual, so it needs watching rather than checking once a year.
Most businesses file quarterly, within 28 days of the end of each tax period. Larger registrants are assigned monthly periods. The FTA sets your cycle when you register, so it is worth confirming rather than assuming. We track your specific period and file ahead of the deadline every time.
Often, but only where you hold the evidence to prove it. Exports of goods outside the GCC implementing states can be zero-rated, and certain services supplied to non-resident recipients qualify too. What decides the outcome is documentation: commercial evidence of the goods leaving, official export paperwork, and proof of the customer's status and place of belonging. Without that, a zero-rated supply becomes a standard-rated one at inspection, with the VAT payable by you.
No. Input VAT is recoverable where the expense relates to making taxable supplies and you hold a valid tax invoice. Several categories are blocked outright, including entertainment provided to anyone other than employees, and motor vehicles available for personal use. Where you make both taxable and exempt supplies, recovery has to be apportioned. Getting the recoverable ratio right is usually where the money is.
The FTA notifies you, then asks for records covering a defined period: tax invoices, credit notes, import and export documentation, and the working papers behind your returns. They test whether the numbers filed reconcile to the underlying records. Inspections rarely go badly because a business got the law wrong. They go badly because the evidence cannot be produced quickly, or at all. If your records are in order, an inspection is a scheduling inconvenience. We act as your agent throughout and deal with the FTA directly.
Find out where you stand.
It takes less than 30 minutes.
A call to review your obligations across tax, VAT, audit and reporting. We flag anything at risk and give you a clear next step. If you don't need us, we'll tell you that too.