FAQ’s

We offer expert VAT registration, filing, and consultation services, ensuring that your business adheres to UAE VAT regulations. Our team assists you in understanding your obligations, making accurate calculations, and meeting submission deadlines.

Absolutely. Our team of skilled tax professionals specializes in creating customized tax optimization and corporate tax planning strategies. We help you minimize tax liabilities while ensuring compliance with UAE tax laws.

We cater to a diverse range of industries across the UAE, including but not limited to retail, hospitality, real estate, technology, manufacturing, and service sectors. Our services are adaptable and tailored to suit your industry’s specific requirements.

Value added tax (VAT) is the tax that is levied on consumption of goods and services at each stage of the supply chain.

If your business exceeds the mandatory threshold i.e, if in the previous twelve months, the taxable supplies and imports have exceeded AED 3,75,000 or expected to exceed in the coming 30 days then you are bound to register for VAT.

Yes, you can voluntarily register for VAT under if the taxable supplies or imports (taxable expenses) have exceeded AED 1,87,500 in the previous twelve months or are expected to exceed in the coming 30 days.

Taxable supplies are the supply of any good or service in the UAE that falls under the purview of VAT and is not an exempt supply.

A zero-rated supply is a taxable supply on which VAT is levied at the rate of 0%. Thus, effectively no output tax is collected in respect of zero-rated supplies. Registered VAT entities making zero-rated supplies are entitled to claim their input tax deductions in respect of tax paid on goods or services acquired while making such taxable supplies.

All taxable supplies which are not exempt supplies are taxed at 5%.

Yes, even if the business makes only zero-rated supplies the taxable person is under the obligation to file a VAT return.

Yes, VAT needs to be paid by the importer under Reverse charge mechanism before the goods are cleared at the customs.

A VAT return must be filed within 28 days from the end of the tax period.

Any person conducting business activity and is registered or is under the obligation to register for tax purposes.

Tax period is a period for which the amount of tax that is payable is calculated. A tax period may be Quarterly, monthly depending on the entity.

An Exempt Supply is defined as a supply of goods or services for consideration while conducting business in the State, where no tax is due and no Input Tax may be recovered.

Reverse Charge Mechanism (RCM) under VAT eliminates the responsibility for the businesses outside the UAE to register for VAT in UAE. It is mainly used for transactions across the border. 

In a normal course of business, supplier supplies goods to the customers and collect VAT from the customers, which is then paid to the Federal Tax Authority (FTA). Under reverse charge mechanism (RCM), the supplier does not charge VAT to the customer, the buyer or end customer pays the tax directly to the government authority.

Corporate tax is a tax levied on the net income or profits of an organization i.e, the revenue minus all the expenses incurred by a business.

Corporate tax is levied at 9% on the profits of a business i.e, 0% up to AED 3,75,000 and 9% above 3,75,000.

A permanent establishment is a fixed place in the UAE from where the business activity is conducted or the management is located wholly/partially or major business decisions are taken. However, a place that is taken only for the purpose of delivery and storage of goods/collecting information or any activity that is conducted which is preparatory or auxiliary in nature is not classified as a permanent establishment.

Dependent agent PE: If a person habitually concludes contracts on behalf of the Non-resident in the UAE.

tax purposes.

All taxable persons are required to register for corporate tax i.e, all business entities must register for corporate tax. Those in the free zones are also required to register for corporate tax within the specified deadlines.  

A Government entity and government-controlled entity

A person who conducts an extractive or non-extractive business activity, meeting the requirements of corporate tax law.

A non-resident person that derives only state sourced income and doesn’t have a Permanent Establishment in the state.

A resident juridical person including the free zone persons are supposed to register within the below provided deadlines if the date of issue of License falls before 1^st March 2024

For businesses which have an incorporation date after 1^st March 2024 the deadline for registration would be 3 months from the date of incorporation or license issue date.

Resident person in case of businesses or companies recognized as PJSC, LLC, LLP etc., are those which are incorporated in the UAE either in mainland or free zone.

In the case of foreign entities, if the business is effectively controlled and managed in the UAE and substantial business decisions are taken in the UAE then they are considered as resident persons for tax purposes.

Natural persons or individuals deriving income from domestic and foreign business incorporated in the UAE are considered as resident persons.

A juridical person who does not fall under the purview of resident person is a non-resident person i.e, any business that is not incorporated in the UAE and does not manage or control its business activity from the UAE can be termed as a non-resident person.

Natural persons who are not deriving any income from business conducted in the UAE are non-resident persons.

Corporate tax return is to be filed only once in the relevant tax period and should be filed and paid within 9 months of the end of the tax period.

For Example: If a company falls under the tax period of 1^st January 2024 to 31^st December 2024, then the tax return must be filed and tax that is due must be paid by 30^th September 2025.

Tax period is the period for which the taxable income is calculated for the entities. The UAE follows the Gregorian calendar year i.e, from 1^st of January to 31^st of December of the respective year. However, the calendar year may vary for different entities like 1^st April to 31^st March or 1^st July to 30^th June etc.

 A penalty of AED 10,000 will be charged for delay in registration of corporate tax.

Reverse Charge Mechanism (RCM) under VAT eliminates the responsibility for the businesses outside the UAE to register for VAT in UAE. It is mainly used for transactions across the border. 

In a normal course of business, supplier supplies goods to the customers and collect VAT from the customers, which is then paid to the Federal Tax Authority (FTA). Under reverse charge mechanism (RCM), the supplier does not charge VAT to the customer, the buyer or end customer pays the tax directly to the government authority.