VAT Services Dubai — UAE VAT Registration, Returns & FTA Compliance

VAT registration is mandatory for UAE businesses with taxable supplies and imports exceeding AED 375,000 per annum. Businesses with supplies between AED 187,500 and AED 375,000 may register voluntarily. Businesses below AED 187,500 are not eligible to register. Non-resident businesses making taxable supplies in UAE must register regardless of threshold.

The mandatory VAT registration threshold in UAE is AED 375,000 of taxable supplies and imports in the preceding 12 months, or expected in the next 30 days. The voluntary registration threshold is AED 187,500. Both thresholds apply to taxable supplies including zero-rated supplies, but exclude exempt supplies. Failure to register when mandatory results in a penalty of AED 20,000.

VAT returns must be filed within 28 days of the end of the tax period. Most businesses have a quarterly tax period (e.g., Jan–Mar, Apr–Jun, Jul–Sep, Oct–Dec), though businesses with annual taxable supplies exceeding AED 150 million are assigned a monthly tax period by the FTA. Late filing results in penalties starting from AED 1,000 for the first offence and AED 2,000 for subsequent offences within 24 months.

Output VAT is the 5% VAT you charge customers on taxable supplies. Input VAT is the 5% VAT you pay suppliers on business purchases. In your VAT return, you deduct input VAT from output VAT. If output VAT exceeds input VAT, you pay the difference to the FTA. If input VAT exceeds output VAT, you carry forward the excess or claim a VAT refund. Not all input VAT is recoverable — blocked items include entertainment and personal use expenses.

Missing a VAT return deadline results in an administrative penalty of AED 1,000 for the first offence and AED 2,000 for each subsequent offence within 24 months. Late payment of VAT attracts a penalty of 2% of the unpaid tax immediately, a further 4% after 7 days, and 1% per day thereafter (capped at 300% of the unpaid tax). Saif CA helps businesses avoid all penalties through timely, accurate VAT return filing.

A VAT health check is an independent review of your business's VAT compliance — covering correct VAT treatment of all transaction types, input tax recovery entitlement, accuracy of VAT returns filed to date, tax invoice format compliance, and readiness for an FTA VAT audit. We identify errors and risks, quantify potential penalties, and file voluntary disclosures to correct mistakes at reduced penalty rates before the FTA discovers them.

As an FTA-registered Tax Agent (TAN 30004113), Saif CA can officially represent your business before the FTA during VAT audits. We review all FTA notifications and data requests, prepare comprehensive audit responses, organise and review supporting documentation, attend FTA meetings on your behalf, challenge incorrect assessments, and negotiate penalties where applicable. Early engagement with a registered Tax Agent significantly improves VAT audit outcomes.

Yes. If your input VAT exceeds output VAT in a tax period — common for exporters, zero-rated suppliers, and businesses with significant capital expenditure — you can request a VAT refund from the FTA. The FTA processes refunds within 20 business days of application approval. Saif CA prepares VAT refund applications ensuring all supporting documents and reconciliations meet FTA requirements to maximise approval rates and minimise delays.

Exempt supplies in UAE include: certain financial services (margins, interest), residential property rentals (after first supply), bare land, and local passenger transport. Exempt supplies do not attract VAT but also do not allow recovery of input VAT on related costs. Zero-rated supplies — exports, international transport, certain healthcare, certain education, and investment gold — attract 0% VAT but allow full input tax recovery. Correct classification is critical for VAT return accuracy.

Yes. If your taxable supplies fall below AED 187,500, your business ceases to make taxable supplies, or you are liquidating your company, you must apply for VAT de-registration within 20 business days of the triggering event. We manage the FTA de-registration process, reconcile all outstanding VAT liabilities, prepare the final VAT return, and ensure a clean closure of your VAT registration to avoid future obligations and penalties.