VAT Compliance & VAT Filing

VAT Compliance & VAT Filing

Dubai’s vibrant economy revolves around Value Added Tax (VAT), a 5% levy on most goods and services. Complying with VAT regulations and filing accurate returns can be daunting, but it’s crucial for businesses to avoid penalties and stay in good standing. Here’s a concise guide to VAT compliance and filing in Dubai:

Registration Requirements:

Mandatory registration for businesses exceeding AED 375,000 annual taxable supplies or imports.

Voluntary registration for businesses between AED 187,500 and AED 375,000, or exceeding AED 187,500 in recoverable VAT expenses.

Compliance Keystones:

Record-keeping: Maintain detailed records of invoices, purchases, and sales for five years.

Invoicing: Clearly display VAT amount on invoices for taxable supplies.

Return filing: File online quarterly (or monthly for some businesses) through the Federal Tax Authority (FTA) eServices portal.

Filing Essentials:

VAT 201 form: Submits details of taxable supplies, purchases, and recoverable VAT.

Payments: Settle VAT due within 28 days of the tax period using approved methods.

Record submission: Upon request, provide supporting documents to the FTA for verification.

Please enable JavaScript in your browser to complete this form.