How To Claim VAT Refund In UAE For Business?
Businesses registered under the FTA must report their sales and purchases for each tax period through a VAT return. Input VAT, the amount paid on purchases, is balanced against Output VAT, the amount collected on sales. There are two outcomes: If Input VAT is less than Output VAT, it leads to VAT Payable, requiring payment […]
Is There Any VAT on Gold In Dubai?
The implementation of VAT in the UAE has brought about significant changes for various businesses, impacting the gold and diamonds sector, a crucial component of the national economy. This sector, in particular, experienced adverse effects as businesses dealing with gold and diamonds were required to pay VAT at the time of purchase, with the ability […]
How To Amend VAT Registration in UAE
In the UAE, VAT registration has been a critical task for businesses since its implementation in 2018. If your turnover exceeds AED 375,000, you must register, and if changes in registration credentials occur, amendments should be reported to the Federal Tax Authority (FTA) within 20 days. The process involves notifying the FTA in writing, awaiting […]
Inclusive VAT In UAE: Meaning, Formula and Calculation
Understanding Inclusive VAT in business is essential for managing invoices where the cost of goods or services incorporates the tax. In the UAE, adherence to displaying prices inclusive of VAT is mandatory, with exceptions for certain cases, Failure to adhere could lead to an administrative penalty amounting to AED 15,000. This article explores the concepts […]
VAT On Courier Services In UAE
In logistics, where the movement of goods significantly influences global trade, the United Arab Emirates (UAE) emerges as a strategic hub due to its well-connected sea and air routes. As a central figure in global transit and re-exportation, the UAE’s shipping and logistics sector is pivotal, subject to specific Value Added Tax (VAT) considerations. VAT’s […]
Dubai VAT Rates List: Standard, Zero Rated & Exempted Supplies In UAE
In the landscape of Value Added Tax (VAT) in the UAE, understanding VAT rates is paramount. However, not all supplies are subject to VAT, as the government has implemented various exemptions to promote economic growth and alleviate the financial burden on certain sectors. The government has categorized supplies into four key VAT ratings with respect […]
How To Claim Input VAT On Imported Goods In UAE?
Understanding the rules for input VAT on imported goods in the UAE is crucial. When importing goods into the country, a VAT rate of 5% is applicable, aligning with the rates applied to similar goods sold domestically. However, the VAT implementation is influenced by various scenarios, including imports by VAT-registered entities and transshipment to other […]
VAT Late Payment Penalty In UAE: Updated Fines & Penalties
Value Added Tax (VAT) is vital for the UAE economy as it diversifies revenue sources. Compliance with VAT Filing is critical, as non-compliance leads to hefty fines from the Federal Tax Authority. Businesses must fulfill their VAT filing obligations to avoid significant fines and penalties from the Federal Tax Authority. Cabinet Decision No. 49 of […]
How To Register For VAT In UAE?
VAT is a form of indirect tax imposed on buying goods and services. Since its inception in 2018, VAT has emerged as a crucial component of the tax system in the UAE. For businesses in the UAE, understanding the VAT registration procedure is crucial for maintaining compliance and smooth operations. This article aims to simplify […]
What Is Voluntary Disclosure For VAT In UAE?
In the UAE’s VAT system, Form 211 allows taxpayers to fix mistakes in their previous submissions, giving them the power to address errors or omissions proactively. Facilitated by the Federal Tax Authority (FTA), this process allows entities to correct information within VAT Returns (Form 201), ensuring accurate reporting of Payable Tax. This article highlights the […]
