Each GCC country is expected to enact its own domestic VAT legislation based on the underlying principles in this GCC VAT Framework. The UAE has adopted a broad tax base with limited exceptions. VAT will apply to the supply of goods and services in the UAE, and to imports into the countries respectively. Certain goods and services may be exempt or subject to a zero rate of VAT. Unless the supply of goods and services falls within a category that is specifically exempt or is subject to the zero rates, VAT will apply at the standard rate. The standard VAT rate will be five percent. In the UAE, VAT returns will generally be required to be submitted on a quarterly basis, with the returns and payments due within 28 days after the end of the period
And now the VAT got introduced in UAE on January 01, 2018
In order to register for VAT, you require knowledge of local tax legislation and procedures, and other relevant language skills. Without this, your application can be queried or rejected which will significantly delay business development.
Therefore, we at BDM consultancy recommend specialist people among us who can assist you with the entire registration and compliance process.
Once registered for VAT in UAE, you will be required to file periodic statutory declarations. In particular, a VAT return will need to be filed (usually a quarter), which summarizes all the taxable transactions that your business made in that specific period.
All VAT return will have different information requirements and reporting formats based on the registration types. In all cases, you must declare the VAT that you have charged on sales (output VAT) and you are allowed to claim back the VAT you have paid out (input VAT), subject to your taxable activity.
Depending on transactions types and values, your business may have to pay over the VAT surplus to the local tax authorities or will be eligible to make a claim for a refund.
VAT Registration
VAT Implementation
VAT Advisory
VAT Return filing
