Value Added Tax (VAT) is a mandatory indirect tax applied on taxable supplies of goods and services in the UAE.
Every business meeting specific criteria must register for VAT, maintain compliant records, and submit accurate VAT returns.
VAT was introduced in the UAE on 1 January 2018 at a standard rate of 5%.
Businesses must register if:
– Annual turnover exceeds AED 375,000 (mandatory)
– Annual turnover exceeds AED 187,500 (voluntary registration allowed)
VAT applies to:
– Sales of goods and services
– Imports
– E-commerce transactions
– Digital services
– Professional services
– Commercial leases
– Many Free Zone activities (depending on zone type)
Required if turnover exceeds AED 375,000.
For turnover above AED 187,500.
Useful for:
New companies
High‑expense businesses
Entities wanting input VAT refunds
For companies under common ownership.
VADA HANDLES THE FULL VAT REGISTRATION PROCESS
Eligibility assessment
-Preparation of required documents
-VAT account creation
-Submission through FTA portal
Approval and TRN (Tax Registration Number) issuance
-VAT certificate provided
-Setup of VAT return schedule
-Ongoing filing & compliance management
VAT FILING & COMPLIANCE SUPPORT
VADA manages ongoing VAT responsibilities:
– Quarterly VAT return filings
– Reviewing sales & purchase records
– Reconciling input vs output VAT
– Ensuring correct VAT categorisation
– Submitting nil returns (if required)
– VAT deregistration (when applicable)
VAT RECORD-KEEPING REQUIREMENTS
Companies must maintain:
– Tax invoices
– Tax credit notes
– Purchase invoices
– Import/export documentation
– Bank statements
– Sales records
– Accounting books
– Contracts and agreements
Records must be kept **for 5–7 years** depending on the Emirate.
STEP 1 — Assess VAT registration requirement
STEP 2 — Prepare company documents
STEP 3 — Submit VAT registration application
STEP 4 — Receive TRN (Tax Registration Number)
STEP 5 — Implement accounting system (if needed)
STEP 6 — Record all VAT transactions
STEP 7 — File VAT returns quarterly
STEP 8 — Maintain VAT audit readiness
– Avoid penalties and fines
– Full VAT compliance
– Proper filing for maximum accuracy
– Minimise audit risks
– Smooth communication with FTA
– Complete documentation management
– Professional accounting support
– Stress‑free quarterly submissions
