Value Added Tax
Value-Added Tax
On 1 January 2018, VAT was implemented in the United Arab Emirates. The standard VAT rate is 5%. Additionally, some supplier types are excluded and have a zero rate.
With a wealth of UAE market expertise, we assist businesses in navigating this regulatory environment, assisting them in maintaining compliance while coordinating tax requirements with more general financial and operational goals.
VAT's scope
Every taxable supply of goods and services made by a taxable person is subject to VAT, including the importation of pertinent goods and services. Under certain circumstances, taxable supplies may be zero-rated or subject to the standard rate of 5%. VAT is not applied to some supplies.
When taxable supplies surpass the obligatory threshold of AED 375,000 in the preceding 12 months or are anticipated to surpass that barrier in the upcoming 30 days, VAT registration is typically necessary. In some circumstances, even if the threshold has not been exceeded, VAT registration may still be necessary.
If the necessary requirements are satisfied, UAE VAT law also permits two or more legal entities to register as a single taxable person by creating a VAT group. Every entity in a VAT group benefits from having a single VAT Tax Registration Number (TRN), a single VAT return, and a single VAT payment procedure.
Subject to certain requirements and backed by relevant documentation, zero-rated supplies include exports of goods and services, international passenger and cargo transportation, investment precious metals, some residential property supplies, natural gas and crude oil, and some healthcare services.
Certain financial services, specific residential property supplies, bare land, and local passenger transportation are examples of exempt supplies, provided they meet certain requirements and are backed up by relevant documentation.
How KASA Advisory can assist
To assist organisations in managing compliance, evaluating risk, and effectively responding to regulatory developments, we offer a wide range of VAT services.
- Evaluation of preparedness for e-invoicing
- Assessment of the requirement to register for VAT
- Evaluations of the effects of VAT on various business transactions
- Assistance with VAT registration and de-registration
- Assistance with VAT compliance
- Support for VAT refunds
- VAT advisory services
- VAT instruction
- VAT guidelines and regulations
- Reviews of VAT health checks
- Support in requesting private explanations from the Federal Tax Authority
- Support for Federal Tax Authority reconsideration and waiver requests
- Support that is prepared for an audit by the Federal Tax Authority
- Examining Public-Private Partnership (PPP) financial models from a tax standpoint
- Support for audits by the Federal Tax Authority
- Tax agency services to represent companies in audits, assessments, objections, and appeals before the Federal Tax Authority
Reasons why companies select KASA Advisory
- Direct representation before the Federal Tax Authority is provided by registered FTA tax agents.
- Experienced in implementing and integrating accredited eInvoicing service providers
- Extensive knowledge of VAT since its implementation in the United Arab Emirates
- Complete VAT assistance, including audits, disputes, compliance, and strategic planning
- Deep industry expertise: workable solutions that complement corporate operations
- VAT advice that is prepared for the future and in line with advancements in digital reporting and eInvoicing
- Advice that is commercially sound, risk-managed, and compliant with regulations
Encouraging realistic VAT compliance
Our VAT experts spend time getting to know each client's business so they can spot opportunities, foresee problems, and provide workable solutions. We can assist continuous compliance and increase VAT efficiency by gaining a thorough grasp of your operations.
Frequently Asked Questions
Browse through frequently asked questions to learn more about our expertise, solutions, and how we help you achieve financial success.
Businesses must register for VAT when taxable supplies and imports exceed AED 375,000 in the previous 12 months or are expected to do so in the next 30 days. Voluntary registration is possible if taxable supplies or taxable expenses exceed AED 187,500.
Two or more legal entities that are related parties can apply to register as a single VAT group with one Tax Registration Number (TRN). A VAT group files a single VAT return and benefits from simplified intra-group transactions.
Zero-rated supplies include exports of goods and services, international transport, investment precious metals, certain residential properties (first supply), crude oil and natural gas, and certain healthcare services, subject to specific conditions.
A VAT health check is a review of your business’s VAT compliance, processes and records to identify errors, inconsistencies or risks before an FTA audit. KASA Advisory’s team can help you identify and remediate issues proactively.
KASA Advisory provides end-to-end FTA audit support, reviewing your records before the audit, liaising with the FTA on your behalf, and assisting with any reassessments, objections or appeals that arise.
Yes. KASA Advisory supports businesses in preparing and submitting VAT refund applications to the FTA, ensuring all documentation is in order and the claim is compliant with FTA requirements.
Explore Our Services
Contact Us Today!
Get in touch with our experts today and take the first step toward smarter.
- Testimonial
Client Reviews & Feedback
4.9
53+ Client reviews
We moved off our old accounting system, KASA handled the migration years of client ledgers, matter balances, historical billing and caught inconsistencies in our records that we had been carrying for a while without realising. Everything reconciled at the end of it. They have since kept us straight on VAT and Corporate Tax, and started us on eInvoicing readiness. Good people to have on the finance and IT side.
Ali Arshad
Marlaw, Partner
KASA came in to assess our finance setup and map out where we needed to be for eInvoicing. They handled the technical questions properly. Integration, system compatibility, how the pieces talk to each other and gave us answers we could actually build on. Solid partner for anything on the finance technology side.
Waqar Ahmed
Technical Director, 10X Digital
Our invoicing and record-keeping had outgrown the way we were doing things. KASA helped us fix the process, tighten the controls, and get properly briefed on what eInvoicing will mean for us. Clear advice and they stayed practical throughout. We wil be using them again.
Rahul Gujral
Commercial Director, Brickhub Properties
Successful Filings
Successful Years
Customer Satisfaction
Trusted By Leading Partners
- Contact Us
Contact our team for expert consultation services
Central Office:
Office 31, Real Business Group Building, Ajman.
Contact Us:
Phone: +971 55 724 3050
Email: [email protected]
Book an Appointment
Connect with our specialists to receive expert guidance on tax compliance, accounting, and regulatory matters tailored to your needs.
- Locations
Regions We Serve
India
Turkmenistan
United Arab Emirates
Egypt
Libya
