VAT registration, accurate returns, refunds and FTA audit defence — with the 2027 e‑invoicing mandate planned for before it becomes urgent.
UAE VAT looks simple at 5%, but most penalties we see come from the details: wrong tax points, missing tax invoice fields, reverse‑charge imports not declared, designated‑zone confusion, and input tax recovered on blocked expenses. Since VAT's introduction in 2018 we have filed thousands of returns and represented clients in FTA audits and reconsiderations.
| Item | Rule |
|---|---|
| Standard rate | 5% on most goods and services; 0% on exports, international transport, certain education/healthcare and first supply of new residential property; exempt: local passenger transport, bare land, residential leases, some financial services. |
| Mandatory registration | Taxable supplies & imports above AED 375,000 in the past 12 months or expected in the next 30 days. |
| Voluntary registration | Above AED 187,500 of taxable supplies or taxable expenses. |
| Return deadline | 28th day of the month following the tax period. |
| Late return | AED 1,000 first time, AED 2,000 for a repeat within 24 months; late payment penalties accrue on the unpaid tax. |
| Records | 5 years (15 years for real estate). |
Importers and traders, e‑commerce sellers, contractors and real‑estate developers, restaurants and hotels, clinics, and service companies billing clients outside the UAE. If you have received an FTA notice, contact us before responding.
When taxable supplies and imports exceed AED 375,000 over the past 12 months, or are expected to exceed it in the next 30 days. Registration must be applied for within 30 days; late registration carries an AED 10,000 penalty.
Most SMEs file quarterly; larger businesses file monthly as assigned by the FTA. Returns and payment are due by the 28th of the month after the period ends.
Generally not on entertainment, or on motor vehicles available for personal use. We review your expense categories and recover everything you are entitled to — without creating audit exposure.
If the tax effect exceeds AED 10,000 you must file a voluntary disclosure within 20 business days of discovering it; smaller errors can be corrected in the next return. Acting quickly reduces penalties.
Not yet, but the mandate is fixed: 1 January 2027 for AED 50m+ revenue businesses and 1 July 2027 for the rest. Choosing an accredited provider and cleaning master data in 2026 avoids a rushed and expensive transition.
Speak directly with a Chartered Accountant — not a sales desk. Free 30‑minute consultation, fixed fees, no surprises.