What you need to know about VAT
VAT was introduced to the UAE in 2018 to provide a new income source for the country to provide high quality public services.
The current VAT rate is 5%
Businesses providing goods or services are required to collect VAT from their customers and transfer this to the government throughout the year.
All companies in the UAE are required to register for VAT once they surpass AED 375,000 of revenue. This must be monitored over a rolling 12 month period. Even if you have no VAT due, you may still required to register and file a quarterly return.
VAT registration and quarterly returns, as well as other services such as book keeping and Corporation tax filings are included in our Strive's Financial Compliance Services. Book a call with us to discuss your accounting requirements.
Is VAT applicable to my customers based outside of the UAE
No. Much like other countries that have a VAT scheme, VAT is only charged to customers within the country. International invoices are exempt from VAT.
Are there any goods exempt from VAT?
There are a small number of goods/services categories that are exempt such as certain financial services, land transactions, leasing and selling residential property and transportation services.