VAT Registration & Compliance

The UAE has introduced the Value Added Tax (VAT) in January 2018 following the introduction of VAT in the GCC countries. VAT is a consumption and indirect tax applied upon consumption of goods and services.

VAT registration

It is mandatory for companies having annual turnover of AED 375,000 or more to register for VAT and file VAT return. In UAE, company having turnover between AED 187,500 – AED 375,000 has the option to register for VAT under the UAE VAT Law. However, it is not compulsory to register for VAT. Companies having annual turnover less than AED 187,500, there is no need to register for VAT.

VAT rates applicable in UAE

The standard flat rate applicable in UAE is 5 %. However, there are some supplies which are zero rated and also some are totally exempted from VAT. The zero- rated and exempted supplies are as follows:

Zero rated

Direct or Indirect Exports
International Transport
Air Passenger Transport
Supply of Air, Sea and Land Means of Transport
Goods and Services Related to the Supply of the Means of Transport
Aircraft and Vessels for Rescue
Supply of Goods and Services Related to the Transfer of Goods or Passengers
Investment in Precious Metal
Sale of the Residential Building
Charitable Building Supplies
Oil & Gas
Educational Services
Healthcare Services

Exempted

Some financial services
Financial services
Supply of bare land
Supply of local passenger transport

As VAT is a new concept in the UAE, the registration and implementation of VAT requires expert guidance. Premier has the experience and knowhow to assist you with your VAT registration, implementation and compliance. Thereafter assisting and advising on VAT related matters, health check, VAT implementation to VAT filing and monitoring. Our services are as follows:

VAT advisory and consultancy
Conducting health checks
VAT registration with authority
VAT implementation/compliance/monitoring
Preparation of VAT returns
Filing of VAT returns
VAT recovery