VAT Services in Dubai 2025

The UAE is leading among the best places in the world to start a business. Everything that an investor or business owner considers before establishing a business setup in a foreign location is present here. It attracts huge foreign investment every year with investor-friendly policies, a prime location, and a stable economy. However, to run a company without any issues, business owners need to understand VAT in UAE. The VAT system was introduced in the country in 2018. Today, it has become mandatory for every business, from a startup to a large company, to understand its rules. This is applied to almost all goods, and businesses must maintain compliance with its guidelines to avoid penalties. Start Any Business (SAB) can help you with everything, from VAT registration to filing and maintaining good financial health. With us on your side, you only need to focus on growing your business.

What is VAT in UAE?

As we discussed above, UAE VAT was introduced in 2018, at a standard rate of 5%. This applies to most goods and services sold within the country. If a business’s yearly taxable sales are more than AED 375,000, it needs to register for VAT with the FTA. Besides registration, a VAT-registered business has to issue VAT-compliant invoices and file returns regularly on time. Businesses collect this indirect tax on behalf of the government. This tax is charged at each stage of production and sale.However, the final cost is paid by the consumer. Businesses can claim back the VAT paid on their expenses. To claim back their input VAT, they need to adjust the output VAT, which is the VAT they collect. Suppliers from some specific sectors, like healthcare, exports, and education, are either 0% or exempt from this indirect tax.

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How VAT Works in UAE?

The UAE VAT system works like a chain. Businesses registered with FTA for VAT charge this indirect tax at each step of buying and selling what they sell (output tax). They need to pay VAT on what they buy (input tax). Then they need to pay the difference to the government. They can also get a refund if they paid more VAT on their purchases than they collected on sales. Let’s understand how this works with an example. Suppose a technology supplier sells software to a local distributor. The supplier charges VAT on its service and pays it to the government. The distributor then sells the software packages to a retail company. The distributor will again charge VAT and claim back the VAT it paid to the supplier. When the retail company sells the software to end users, it will also charge VAT and claim back the VAT it paid to the distributor. This system makes sure that this indirect tax is not charged twice, and the final consumer actually pays the VAT.

VAT Rate in UAE

In the Emirates, the VAT is mainly divided into three main types. The main difference among them is the ability for businesses to reclaim the tax they paid on business purchases, which is allowed for standard-rate and 0-rated supplies. However, this benefit is not available for exempt supplies.

Zero-Rated Supplies (0%)

These supplies fall under the category of taxable goods and services but have a VAT rate of 0%. Businesses that provide these supplies can reclaim the tax they paid on their purchase. This includes:

Exports: Goods and services that are sold to countries outside the GCC.
International Transport: Services for passengers and goods that start, end, or even pass through the UAE.
Precious Metals: Supply of investment-grade gold, silver, and platinum (99% pure or higher) is also zero-rated.
Real Estate: The first supply of a new residential building within three years of its completion is zero-rated. After this, all other sales are free from VAT charges.
Education: Certain educational services and related goods supplied by qualifying institutions.
Healthcare: Medicines, medical equipment, preventive and curative healthcare services offered by qualifying medical professionals and institutions.

In the United Arab Emirates, the new tax laws have made it mandatory that all the companies require to get VAT services Dubai. All the companies require to register themselves with the governing jurisdiction and get to filing done on a quarterly and monthly basis. This Post-VAT age of UAE Start any Business (SAB) address all your required VAT.

What is VAT?

Value-added Tax (VAT) is one of the most basic indirect tax types applied in most countries. The government of UAE introduced Value Added Tax (VAT) on 1ST January 2018. VAT is an indirect tax that is imposed on the destruction of services and goods. The demand for vat would considerably impact the operation of the business. With the heightened risk, volume, and complication of the transaction, it becomes tougher for taxpayers to meet the tax agreement.

VAT comes in the kind of indirect taxes, and presently, it is used in most countries across the world. It is required by the business entities or people that are enrolled for VAT on account of supplies of services/goods to clients in the ordinary way of business procedures.

Range of Tax Services at Start any Business (SAB) Tax Consultants and Accounting Services LLC:

Tax experts of our company explain and categorize tax groups for you.
Our company offers you tax agents in the UAE.
Start any Business (SAB) carefully examine your balance sheet.
Our company versatility to deal with your legal and financial issues.
We also process accurate and quick tax filing for your company.

VAT services Dubai in 2025 With Start Any Business

Start Any Business (SAB) helps you with VAT registration in the United Arab Emirates and also offers with all your concern related to VAT registration needs. In the UAE VAT registration of companies is a major need. Start Any Business (SAB) offers reasonable, quick, easy and time-effective VAT accounting and inspection services in the UAE. The authorized VAT consultants of our company offer all-over knowledge on tax categorization.

Our company’s objective is to help all types of business by applying their maximum prospective and increasing their financial growth.

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VAT Consultancy Services In Dubai

VAT consultancy services in Dubai play a vital role in calculating and implementing VAT tax for businesses. Value-added tax or vat consultancy services in Dubai have approved experts who provide businesses all-inclusive tax services that range from getting your business a VAT registration to teaching your people on the financial influences of VAT on many goods and services that you handle. Built-in with the VAT consultants in Dubai, you can successfully deal with your VAT registration is obligatory for your business.

Start Any Business can help you to go through a simple procedure to start with VAT registration in UAE. One of the most vital necessities to meet when applying for a VAT number in Dubai is to have a tax identification number. This is achieved concurrently with the Certificate of Incorporation and is declared by the Trade Register in Dubai. As per the tax identification number, a business will be allotted a VAT certificate.

The most essential requirement to meet when implementing a VAT number in Dubai is to have a tax identification number. This is taken concurrently with the Certificate of Incorporation and is declared by the Trade Register in Dubai. As per the tax identification number, a business will be allotted a VAT certificate.

Accounting Services in Dubai

Start Any Business (SAB) provides the best accounting services in Dubai. We are a renowned accounting firm in Dubai that takes care of your distinct financial requirements and also makes sure that your businesses are strategically better and scale to new heights. Our accountants in Dubai will assist you to remarkably decrease the regulatory burden and abundant financial charges acquired.

This enables our associates to transmit and simplify their efforts to focus on core prospect fields and boost company performance with enhanced versatility to respond to developing business and accounting needs in the United Arab Emirates (UAE).

Frequently Asked Questions On VAT Services in Dubai

1. What goods and services are exempt from VAT in Dubai?

List of goods and services are exempt from VAT in Dubai that are:

Education and training
Oil and Gas
Transportation
Healthcare
Real Estate
Select financial service

2. How do I claim VAT refund in Dubai?

To claim a VAT refund, applicants are required to submit a refund form to the Federal Tax Authority (FTA) via email along with supporting documents.

3. How do I submit VAT to UAE?

To access the VAT return for 201, the taxpayer should log in to the FTA e-service portal using your registered username and password. From navigation menu, select the VAT-> VAT 201 -> click on VAT 201 -new VAT return to initiate the VAT return filing process.

4. Is VAT applicable on services in UAE?

UAE suppliers are only entitled to impose the zero rate of VAT on services supplied. In case the setup of its recipient, it is most associated with supply, is outside UAE.

5. How do we calculate VAT?

To calculate VAT, you need to follow these things :

Determine the net price (VAT exclusive price)
Find out the VAT rate
For calculate the VAT price: first, multiply the net amount by VAT rate
Determine the gross amount: multiply the net price by the VAT rate, and then.
Add this to the VAT exclusive amount so you receive the VAT inclusive

6. Is VAT registration mandatory in UAE?

Yes, VAT registration in mandatory in the UAE. When you are expecting to supply goods or services in UAE or arrange for VAT, you are required to register after the VAT law comes into force and there is no other person in UAE due to VAT on your behalf.

7. Who is eligible for VAT registration?

All the businesses residing in the UAE state and in the last 12 months the value of supplies in the member states have exceeded AED 375,000. They must compulsorily register under the UAE VAT.

8. What are the 3 types of VAT?

The three types of VAT are :

Consumption
Income kind
Gross National products

9. When to charge VAT on services?

Once your trade is registered in VAT. When your business income reaches the VAT registration limit. Then charge VAT on services.

10. Can UAE Nationals claim VAT?

UAE citizens are entitled to a refund of Value Added Tax (VAT) imposed on the construction of a new residence for their own use.

11. On which business does VAT apply?

Any business or business of manufacturing, whether it is a sole proprietorship or a partnership company, that sells its products, is liable for VAT registration.

12. How often are companies required to file VAT returns ?

The standard VAT return period applicable to most taxpayers is a quarterly return i.e., three calendar months. In addition, the FTA may request certain types of businesses to file VAT returns on a monthly basis. The last date for filing the return will be the 28th day after the end of the VAT return period.

13. Areas in the UAE exempted from VAT?

Areas that are exempted from VAT in the UAE are:

Supply of some financial services
Residential properties-sale and lease.
Bare land-sale and lease.
Local passenger transport.

14. Is VAT applicable for free zone companies in UAE?

Since the location of supply of goods generally follows the place of goods, the supply of goods to the designated zone is carried out outside the United Arab Emirates. It means that default supplies that such supplies are not subject to UAE VAT.