VAT basics in the UAE
VAT is a tax on consumption.
Read the guideBWMC KNOWLEDGE HUB
UAE VAT guides and practical checklists
Start with the issue you need to understand. These introductory guides explain the key questions, records and next steps, with links to official FTA material.
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19 guides. Requirements depend on the transaction, the period and current legislation.
When should a business register for VAT?
For UAE-resident businesses, the mandatory registration threshold is AED 375,000 of taxable supplies and imports and the voluntary threshold is AED 187,500, subject to the applicable tests.
Read the guideHow are supplies classified for VAT?
A sale must be assessed using its facts.
Read the guideWhat does reverse charge mean?
Reverse charge places the responsibility for accounting for tax on the recipient for specified transactions.
Read the guidePreparing a VAT return
A VAT return reports the transactions and adjustments for the tax period assigned to the business.
Read the guidePaying VAT and checking the balance
A submitted return does not itself settle the liability.
Read the guideKeeping VAT records and supporting evidence
Reliable VAT records connect the return to invoices, contracts and accounting entries.
Read the guideExcise tax is separate from VAT
Excise tax applies to specified goods under its own rules.
Read the guideAssessing excise registration
Excise registration depends on the activity and goods involved.
Read the guideHistorical VAT transactions and transitional rules
Transitional rules concern transactions spanning a change in the law, including the introduction of VAT in 2018.
Read the guideWhy the place of supply matters
Place-of-supply rules determine where a transaction is treated as taking place for VAT purposes.
Read the guideDesignated zones and VAT
A VAT designated zone is not the same as any free zone.
Read the guideReconciling VAT on imports
Imported goods require a review of customs records and VAT treatment.
Read the guideWhich tax period should include a transaction?
The date of supply determines when tax becomes due.
Read the guideDetermining the taxable value
The value used for VAT may need adjustment for discounts, non-cash consideration or other specific circumstances.
Read the guideVAT errors, penalties and next steps
The consequence of a VAT error depends on the breach, dates, amounts and applicable legislation.
Read the guideWhen can input VAT be recovered?
Input VAT recovery is conditional.
Read the guideVAT credits and refund applications
A credit balance and an approved cash refund are different things.
Read the guideImport declarations and the VAT return
Customs documentation should be reconciled with the accounting records and the VAT return.
Read the guideNeed advice for a specific transaction?
Use the guides for orientation. For a filing decision, correction or unusual transaction, arrange a review of the facts and supporting records.
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