Do you have any questions?
What is the tax system in the UAE?
The UAE applies a 5% Value Added Tax (VAT) on most goods and services. This tax was implemented on 1 January 2018 as part of the Gulf Cooperation Council agreement.
Do all businesses have to pay VAT?
Businesses with annual revenues of AED 375,000 or more must register for and pay VAT. Businesses with revenues of AED 187,500 or more but less than AED 375,000 can register voluntarily.
Are individuals required to pay income tax in the UAE?
The UAE does not impose income tax on individuals. Citizens and residents are completely exempt from personal income taxes.
Are there any exemptions or exceptions to VAT?
Yes, there are some categories that are exempt from VAT such as education, health, some financial services, and residential real estate.
How can I register my company for VAT?
You can register your company through us.
What are the penalties for non-compliance with the VAT system?
Businesses that do not comply with the VAT system may face significant fines. Fines range from AED 500 to over AED 50,000, depending on the type of violation.
How can I file a VAT return?
Contact us and we will help you with that.
Is there a VAT refund system?
Yes, businesses can recover VAT paid on goods and services purchased for use in a qualifying business.
Are imported goods subject to VAT?
Yes, all goods imported into the UAE are subject to a 5% VAT. This tax can be recovered by VAT registered businesses if the goods are used in a taxable business activity.
Are residents and tourists required to pay VAT?
Residents are required to pay VAT on goods and services they purchase. Tourists can claim VAT refunds on purchases when they leave the UAE, provided certain conditions are met.