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  • Al Sada Street, Business Bay, Dubai

Frequently Asked Questions

Frequently Asked Questions

If you have any concerns please read this collection of frequently asked questions before contacting us. If you are still unclear about something feel free to contact.

How to register for VAT?

Federal Tax Authority has opened VAT Registration for UAE companies. The link for VAT Registration  is https://eservices.tax.gov.ae/en-us/ The link opens up to a page wherein either you can log in if already a user or create a new account for your company.

Will non-residents be required to register for VAT?

Will it be possible to issue cash receipts instead of VAT invoices?

A supplier registered or required to be registered for VAT must issue a valid VAT invoice for the supply. To be considered as a valid VAT invoice, the document must follow a specific format as mentioned in the legislation. In certain situations the supplier may be able to issue a simplified VAT invoice. The conditions

How quickly will refunds be released?

Refunds will be made after the receipt of the application and subject to verification checks, with a particular focus on avoiding fraud.

Can UAE nationals claim VAT?

A scheme will be introduced to allow a UAE national who is not registered for VAT to reclaim VAT paid on goods and services relating to constructing a new residence which will be privately used by the person and his family. This will allow the recovery of VAT on such expenses as contractor’s services and

How will insurance be treated?

Generally, insurance (vehicle, medical, etc) will be taxable. Life insurance, however, will be treated as an exempt financial service.

How will partial exemption work?

Where a VAT registered person incurs input tax on its business expenses, this input tax can be recovered in full if it relates to a taxable supply made, or intended to be made, by the registered person. In contrast, where the expense relates to a non-taxable supply (e.g. exempt supplies), the registered person may not

Will there be bad debt relief?

VAT registered businesses will be able to reduce their output tax liability by the amount of VAT that relates to bad debt which has been written off by the VAT registered business. The legislation will include the conditions and limitations concerning the use of this relief.

Will there be VAT grouping?

Businesses that satisfy certain requirements covered under the Legislation (such as being resident in the UAE and being related/associated parties) will be able to register as a VAT group. For some businesses, VAT grouping will be a useful tool that would simplify accounting for VAT.

What sectors will be exempt?

The following categories of supplies will be exempt from VAT: The supply of some financial services (clarified in VAT legislation); Residential properties; Bare land; and Local passenger transport

How will real estate be treated?

The VAT treatment of real estate will depend on whether it is a commercial or residential property. Supplies (including sales or leases) of commercial properties will be taxable at the standard VAT rate (i.e 5%). On the other hand, supplies of residential properties will generally be exempt from VAT. This will ensure that VAT would

Can businesses offset customs duty against VAT payments?

VAT shall be payable in addition to the customs duties paid by the importer of the goods and cannot be deducted. VAT shall be computed on the value that includes the customs duties.

Online Registration Portal for VAT in UAE & Excise Tax

Online Registration Portal for VAT. You can register now: https://eservices.tax.gov.ae/en-us/

Who can or will be able to register for VAT?

A business must register for VAT if their taxable supplies and imports exceed the mandatory registration threshold of AED 375,000. Furthermore, a business may choose to register for VAT voluntarily if their supplies and imports are less than the mandatory registration threshold, but exceed the voluntary registration threshold of AED 187,500. Similarly, a business may register

How long must a taxable person retain VAT invoices for?

Any taxable person must retain VAT invoices issued and received for a minimum of 5 years.

What sectors will be zero rated?

AT will be charged at 0% in respect of the following main categories of supplies: Exports of goods and services to outside the GCC; International transportation, and related supplies; Supplies of certain sea, air and land means of transportation (such as aircrafts and ships); Certain investment grade precious metals (e.g. gold, silver, of 99% purity);

What sectors will be exempt?

The following categories of supplies will be exempt from VAT: The supply of some financial services (clarified in VAT legislation); Residential properties; Bare land; and Local passenger transport

For VAT/Tax advice contact now

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