FAQ VAT Law

A FAQ about most common questions to answer on the field about TAX related issues & VAT Issues

in this article we will be answering all common questions that is related to VAT law in the United Arab emirates

Value-Added Tax (VAT) is a Tax on goods and services charged at every point in the supply chain where value is added, from the beginning of production to the point of sales. It was enforced in the UAE on January 1, 2018.

What is VAT ?

VAT is calculated at 5% on the invoice value.

How to calculate VAT ?

Companies can register for VAT through Federal Tax Authority (FTA) online portal.

How to register in VAT ?

VAT, or value-added tax, was enforced in the UAE on January 1, 2018, and is charged on all goods and services sold in the UAE.

What is VAT in UAE ?

Tourists can collect their refunds through a special device placed at the departure airport, seaport or border port.

How to claim VAT refund in UAE for tourists?

You can request and claim a VAT Refund in UAE by logging in to Emara Tax, request for a VAT Refund form, fill the details and submit the required documents.

How to claim a VAT refund in UAE?

You must file for tax return electronically through the FTA portal: eservices.tax.gov.ae. Before filing the VAT return form on the portal, make sure you have met all tax returns requirements.

How to File VAT return in UAE ?

Some products or services are subject to either 0% rate or an exemption. However, the standard rate applied on most of the goods is 5%. This is applicable in the whole UAE.

How much is the VAT in UAE ?

Go to the e-services on FTA's official website, click the TRN Verification tab, fill out the TRN field and click Validate.

How to Check VAT by Company name ?

Some products or services are subject to either a 0% rate or an exemption. However, the standard rate applied on most of the goods is 5%. This is applicable in the whole UAE.

What is the VAT rate in UAE in 2024 ?

After submitting the VAT return form, the VAT payable and the other liabilities like penalties which a taxpayer needs to pay will be shown under ‘My Payment’ in FTA portal. Then choose the suitable option to payment.

How to pay VAT online ?

Every registered person needs to file VAT return and if there is any VAT payable, should make payment.

Who should pay the VAT ?

Yes, VAT is refundable in Dubai if the total Tax credit is more than total Tax payable.

Is VAT refundable in Dubai ?

VAT is a Tax on goods and services charged at every point in the supply chain where value is added, from the beginning of production to the point of sale. VAT cannot be avoided.

How to Avoid VAT in UAE ?

Mandatory VAT Registration threshold limit: If total turnover exceeds AED. 375,000 per annum.
Voluntary VAT Registration, if total turnover exceeds AED 187,500 but equal to and less than AED 375,000 per annum.

What is the threshold limit for VAT registration ?

Failure in the payment before the due date would result in a late payment penalty, as listed below:
- 2% of the unpaid Tax immediately levied once the payment of payable Tax is late.
- 4% is due on the seventh day following the deadline for payment, on the amount of Tax which is still unpaid.
- 1% daily penalty charged on any amount that is still unpaid for one calendar month following the deadline for payment with a maximum ceiling of 300%.

What if I don’t pay VAT ?

Contact US