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VAT Services in Dubai
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VAT advisory, enrollment support, returns, refunds, and filing work reviewed by the Managing Partner.
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Our Suite of VAT Services in Dubai
VAT Onboarding Support
Get support with your VAT enrollment, documents and FTA process from start to finish.
VAT Return Filing
Prepare and file your VAT returns on time with accurate support that helps you avoid mistakes and penalties.
VAT Consultancy
Get simple, clear advice on VAT rules and compliance so your business makes the right decisions every time.
VAT Deregistration
Get support with VAT deregistration, including the required documents, steps and FTA process.
VAT Audit
Review your VAT records, fix issues, and prepare for audits to keep your business compliant.
VAT Refund for Businesses
Claim VAT refunds with complete support to prepare documents, check eligibility, and submit requests.
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Need VAT services in Dubai?
Contact Beaufort Associates for senior-led VAT compliance support.
Why Choose Our Services for Value Added Tax?
Here are the main benefits of opting for Beaufort Associates.
- Timely Return Filing
- 3-Step Review of all VAT Work
- Full Documentation Handling
- Managing Partner Oversight
VAT Made Easy
3-Step Solution for 360° VAT Support
Step1
Free Review & VAT Needs Assessment
We review your business and identify exactly which VAT services you need.
Step 2
Complete VAT Support & Coordination
We support onbaording applications, filing, record checks and ongoing compliance.
Step 3
Ongoing VAT Compliance
Stay on track with timely filings, advice and ongoing VAT support.
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What Our Clients Say
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Highly dedicated staff, consistently delivering quality work.
Naho Yamaoka
Office Manager, NTT
Quick responses and timely follow ups.
Tamraz Mammadov
Manager, Vista International
Outstanding professionalism and knowledge of the subject.
Amit Falnikar
Finance Manager, TransMak
Highly recommended! The staff is incredibly talented!
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Chaiman, Abbasi Group
Understanding VAT in the UAE
What are the three types of VAT treatment in the UAE?
1. Standard-rated supplies: VAT is charged at 5%, unless a special rule applies.
2. Zero-rated supplies: VAT is charged at 0%, and related input tax may generally be recoverable if the VAT recovery conditions are met.
3. Exempt supplies: VAT is not charged, and input tax directly related to exempt supplies is generally not recoverable, subject to the VAT apportionment rules.
Legal Reference
Federal Decree-Law No. (8) of 2017 on Value Added Tax, Articles 3, 45, 46, 54, 55 and 58
What is the VAT rule in the UAE?
The UAE applies VAT at a standard rate of 5% on taxable supplies and imports, unless a zero-rate or exemption applies. VAT is charged at different stages of production and distribution, and VAT-registered businesses collect output VAT on taxable supplies.
Key VAT Rules in the UAE (Explained Simply)
- Standard VAT Rate is 5%
- Some supplies may be zero-rated or exempt.
- VAT registration is required when taxable supplies and imports exceed the mandatory threshold.
- VAT returns are generally filed monthly or quarterly.
- VAT returns and payment are due within 28 days after the end of the tax period.
- Late filing, late payment, incorrect reporting or missing records may lead to FTA penalties.
Legal Reference
Federal Decree-Law No. (8) of 2017 on Value Added Tax, Articles 1 and 3
Cabinet Decision No. (52) of 2017 on the Executive Regulation of Federal Decree-Law No. (8) of 2017 on Value Added Tax, Articles 7, 8 and 64
Cabinet Decision No. (40) of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE, as amended
What is the Minimum Turnover for VAT in the UAE?
VAT registration is generally mandatory if the value of taxable supplies and imports exceeds AED 375,000 over the relevant 12-month period, or is expected to exceed that amount in the next 30 days.
Voluntary registration may be available if taxable supplies/imports or taxable expenses exceed AED 187,500. Businesses should check the specific VAT registration rules before deciding whether registration is required.
Legal Reference
Federal Decree-Law No. (8) of 2017 on Value Added Tax, Articles 13 and 19
Cabinet Decision No. (52) of 2017 on the Executive Regulation of Federal Decree-Law No. (8) of 2017 on Value Added Tax, Articles 7 and 8
How to Compute VAT in the UAE?
For a simple VAT calculation, a VAT-registered business generally calculates output VAT on taxable sales and deducts recoverable input tax on eligible business purchases.
The difference is reported in the VAT return as VAT payable or refundable, subject to the VAT recovery rules and supporting documentation.
VAT payable = output tax – recoverable input tax, subject to VAT recovery rules and proper supporting documents.
Legal Reference
Federal Decree-Law No. (8) of 2017 on Value Added Tax, Articles 1, 54, 55 and 58
Cabinet Decision No. (52) of 2017 on the Executive Regulation of Federal Decree-Law No. (8) of 2017 on Value Added Tax, Article 64
How is VAT applied in the UAE?
Below is a simple example that explains how VAT is applied on goods:
Step 1: Manufacturer → Wholesaler
Example:
- The manufacturer sells goods to a wholesaler for AED 1,000 (excluding VAT).
- VAT at 5% = AED 50
So the manufacturer’s invoice is:
- Goods: AED 1,000
- VAT (5%): AED 50
- Total: AED 1,050
The manufacturer:
- Collects AED 50 VAT from the wholesaler
- Pays this AED 50 to the FTA (after adjusting its own input VAT, if any)
Step 2: Wholesaler → Retailer
Now the wholesaler sells the goods to a retailer.
Example:
- Selling price to retailer: AED 1,500 (excluding VAT)
- VAT at 5% = AED 75
Invoice to retailer:
- Goods: AED 1,500
- VAT (5%): AED 75
- Total: AED 1,575
The wholesaler:
- Had paid AED 50 VAT to the manufacturer (input VAT)
- Collects AED 75 VAT from the retailer (output VAT)
So, VAT payable to FTA =
Output VAT (75) – Input VAT (50) = AED 25
Step 3: Retailer → Final Consumer
Now the retailer sells the goods to the end consumer.
Example:
- Selling price to consumer: AED 2,000 (excluding VAT)
- VAT at 5% = AED 100
Invoice to consumer:
- Goods: AED 2,000
- VAT (5%): AED 100
- Total: AED 2,100
The retailer:
- Had paid AED 75 VAT to the wholesaler (input VAT)
- Collects AED 100 VAT from the consumer (output VAT)
So, VAT payable to FTA =
Output VAT (100) – Input VAT (75) = AED 25
Final Result – Who Really Pays the VAT?
Let’s look at the VAT amounts:
- Manufacturer paid to FTA: AED 50
- Wholesaler paid to FTA: AED 25
- Retailer paid to FTA: AED 25
Total VAT paid to FTA = 50 + 25 + 25 = AED 100
This AED 100 is exactly the 5% VAT on the final consumer price (AED 2,000 × 5%).
So the final consumer pays the full VAT.
Each business in the chain only passes the VAT along and pays the difference.
In Summary:
- VAT is added at each sale in the chain.
- Each business claims back the VAT it paid and pays only the difference.
The final consumer is the one who actually bears the full VAT cost.
Note: The above example assumes standard-rated supplies, VAT-registered businesses and recoverable input tax. In that situation, VAT is collected at each stage, businesses deduct eligible input VAT, and the final consumer generally bears the VAT cost.
Legal Reference: Federal Decree-Law No. (8) of 2017 on Value Added Tax, Articles 1, 3, 54, 55 and 58
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Frequently Asked Questions
VAT is a tax applied in the UAE at a standard rate of 5% on taxable supplies and imports, unless a zero-rate or exemption applies. VAT-registered businesses collect output VAT on taxable sales and may deduct recoverable input tax on eligible purchases when the VAT recovery conditions are met.
Legal Reference: Federal Decree-Law No. (8) of 2017 on Value Added Tax, Articles 1, 3, 54, 55 and 58
Some supplies are exempt from VAT, including certain financial services, residential property leases or sales, bare land and local passenger transport. VAT is not charged on exempt supplies, and input tax directly related to exempt supplies is generally not recoverable, subject to apportionment rules.
Legal Reference: Federal Decree-Law No. (8) of 2017 on Value Added Tax, Articles 46 and 58
Cabinet Decision No. (52) of 2017 on the Executive Regulation of Federal Decree-Law No. (8) of 2017 on Value Added Tax, Article 55
Input VAT is VAT paid or payable on business purchases or imports. A VAT-registered business may recover eligible input VAT through its VAT return if the VAT recovery conditions are met and the required tax invoices or import documents are kept.
Legal Reference: Federal Decree-Law No. (8) of 2017 on Value Added Tax, Articles 1, 54 and 55
Output VAT is the VAT charged by a VAT-registered business on taxable supplies. For a standard-rated supply of AED 1,000, VAT at 5% is AED 50.
Legal Reference
Federal Decree-Law No. (8) of 2017 on Value Added Tax, Articles 1 and 3
Yes. Free zone businesses are generally subject to the UAE VAT rules. Only Cabinet-listed Designated Zones have special VAT treatment, and only where the relevant conditions are met. Businesses established in Designated Zones are still treated as established in the UAE for VAT purposes and may have normal VAT registration, reporting and recordkeeping obligations.
Legal Reference: Federal Tax Authority Designated Zones VAT Guide (VATGDZ1), sections 2.2 and 2.3
Cabinet Decision No. (52) of 2017 on the Executive Regulation of Federal Decree-Law No. (8) of 2017 on Value Added Tax, Article 51
No — the UAE FTA does not allow TRN (VAT number) searches by company name.
But if you already have the TRN, you can verify it on the FTA TRN Verification Portal.
In simple words:
You cannot find a company’s VAT number by name, but you can validate a VAT number if you have it.
Legal Reference: Federal Tax Authority TRN Verification Portal
VAT started in the UAE on 1 January 2018 at a standard rate of 5%.
In simple words:
VAT began in 2018.
Legal Reference
Federal Decree-Law No. (8) of 2017 on Value Added Tax, Article 3
UAE Legislation Portal parent page for Federal Decree-Law No. (8) of 2017 on Value Added Tax
VAT stands for Value Added Tax.
Legal Reference
Federal Decree-Law No. (8) of 2017 on Value Added Tax, Article 1
VAT-registered businesses should keep proper VAT records, including tax invoices, tax credit notes, VAT returns, accounting records and supporting documents. VAT records are generally kept for at least 5 years, but records related to real property must be kept for 15 years. Additional records may be required depending on the business and transactions.
Legal Reference
Federal Decree-Law No. (8) of 2017 on Value Added Tax, Article 78
Cabinet Decision No. (52) of 2017 on the Executive Regulation of Federal Decree-Law No. (8) of 2017 on Value Added Tax, Article 71
Federal Decree-Law No. (28) of 2022 on Tax Procedures
Cabinet Decision No. (74) of 2023 on the Executive Regulation of Federal Decree-Law No. (28) of 2022 on Tax Procedures
Disclaimer: This page sets out our understanding of UAE VAT based on the legislation and guidance in force at the date of last review. The position may change, and the application to a particular set of facts may require further analysis. Nothing on this page constitutes professional, legal or tax advice. Beaufort Associates accepts no liability for action taken or not taken in reliance on this page. Please contact us for advice tailored to your circumstances.
Sources
Primary sources referenced on this page:
- Federal Decree-Law No. (8) of 2017 on Value Added Tax
- Cabinet Decision No. (52) of 2017 on the Executive Regulation of Federal Decree-Law No. (8) of 2017 on Value Added Tax
- Federal Decree-Law No. (28) of 2022 on Tax Procedures
- Cabinet Decision No. (40) of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE, as amended
- Federal Tax Authority Designated Zones VAT Guide (VATGDZ1)
- Federal Tax Authority VAT Registration topic/service pages and VAT User Guide
- Federal Tax Authority VAT Returns and Payments page / VAT Returns User Guide
- Federal Tax Authority TRN Verification Portal screenshot provided by the user
We have referenced the legislation in force as at the last review date. The UAE tax framework is evolving; later changes may affect the position. Speak with us for advice on your specific circumstances.
