VAT compliance made simple with expert support in the UAE
Since the implementation of Value Added Tax (VAT) in the UAE in 2018, businesses within Dubai have been challenged with the compliance process. VAT has now become part of the regulatory framework and this includes the mandatory and time sensitive registration and filing. VAT compliance can involve complex calculations related to input and output VAT, as well as events surrounding zero-rated, and exempt supplies. Without burning specialised knowledge, your business may experience significant penalties, the potential of an audit, or costly mistakes with your VAT return filings and record keeping.
At dubaisetupnow, we are focused on offering VAT services in Dubai that are designed with the various characteristics of startups, SMEs, and large businesses in mind. Our professionals VAT consultants will help ensure compliance with the Federal Tax Authority (FTA) through any range of service, from VAT registration, VAT return filings, maintaining records, tax advisory, and audits etc. We ensure that your financial processes are accurate, transparent and compliant with UAE tax legislation so that you can concentrate on developing your business, and we will focus on being efficient and accurate with your VAT process.
What Is VAT and Why Is It Important in Dubai?
VAT (Value Added Tax) is an indirect tax on consumption, which is imposed on the sale or consumption of most goods and services in the UAE. The VAT standard rate in the UAE is 5%. The business collects VAT from the customer, and they must send it to the Federal Tax Authority (FTA).
VAT is 5%, which is low when compared to other parts of the world, but it is important for businesses not to forget to register, collect, or file VAT as these mistakes can result in severe penalties, legal action, and the loss of a good reputation in business matters.Key VAT responsibilities in Dubai include:
- Timely VAT registration
- Issuing VAT-compliant invoices
- Submitting accurate VAT returns
- Keeping proper tax records
- Managing VAT on imports, exports, and zero-rated items
Who Needs VAT Services in the UAE?
Any business with a taxable turnover exceeding AED 375,000 annually must register for VAT. Even companies with turnover between AED 187,500 and AED 375,000 may opt for voluntary registration. If your business is new or scaling fast, it’s vital to assess your VAT position early.
Sectors that benefit from VAT services in Dubai include:
- Trading and e-commerce companies
- Construction and real estate businesses
- Professional services firms
- Hospitality and F&B outlets
- Manufacturing and logistics operations
- Freelancers and digital entrepreneurs
What Do VAT Services in Dubai Typically Include?
Professional VAT advisers and tax consultants provide a wide range of services to relieve your compliance obligations.
At dubaisetupnow, our VAT experts provide full-service support to various types of businesses.
VAT Registration & Deregistration
We achieve the registration of businesses with the FTA so they acquire their TRN (Tax Registration Number) and we will also initiate deregistration when a business is eligible to do so, and ultimately protecting our clients from incurring unnecessary penalties.
VAT Returns
We accurately prepare and file your VAT returns quarterly and ensure input/output VAT has been correctly reported, and documented accordingly.
VAT Audit & Health Check
Our internal VAT audit allows us to identify any risks and compliance gaps, and encourages a business to prepare for an FTA Audit, minimizing any risk associated.
VAT Record Unable to Deliver
Our VAT consultants offer assistance to maintain proper VAT records in accordance with UAE legislation by ensuring there is sufficient documentation for tax invoices, regular import/export documentation, and an ongoing transaction drop.
VAT Impact Assessment
If you are starting a new business model or service we provide VAT impact assessments that ensure your new project is VAT efficient and avoids potential VAT expenses.
Reconsideration & Penalty Notice Appeal
If you receive a penalty from the FTA/ a fine, our team provides all documentation and assists to file a reconsideration request to settle your disputes with the FTA
What Are the Common Challenges Businesses Face with VAT in Dubai?
Despite clear regulations, many businesses unknowingly violate VAT rules due to:
- Misclassifying zero-rated or exempt supplies
- Delays in VAT return submissions
- Using non-compliant invoicing systems
- Improper accounting for reverse charge mechanism
- Failing to update records during business changes
With dubaisetupnow’s expert VAT support, you can avoid these pitfalls and focus on what matters—growing your business.
Why Choose dubaisetupnow for VAT Services in Dubai?
We’re more than just a compliance firm. We’re your strategic tax partner.
At dubaisetupnow, our certified tax consultants help you simplify VAT processes, minimize risks, and maintain 100% FTA compliance. Whether you’re just starting out or expanding across the GCC, we provide:
- Personalized VAT planning for your business model
- End-to-end VAT registration and filing
- Transparent pricing and bilingual support
- Guidance on audits, tax reconsideration, and advisory
- Integration with accounting software for automated compliance
Frequently Asked Questions (FAQs)
No, businesses only need to register for VAT if their yearly business taxable turnover is AED 375,000 or more. However, businesses with a yearly turnover ranging from AED 187,500 - AED 375,000 are able to register voluntarily and this is often recommended for start-ups who want to grow their business.
The standard VAT rate is 5% in the United Arab Emirates and this applies to most goods and services unless subject to zero-rated or exempt, as per FTA regulations.
If your company is VAT registered, you may be able to reclaim input VAT on qualifying expenditures, effectively reducing your total VAT liability, as long as you keep appropriate tax invoices and records.
The FTA has a penalty of AED 1,000 for a first offence, a fine of AED 2,000 for an additional offence, in the same class of offence, which relates to late submission of VAT returns. Further late payment of VAT will incur interest monthly at a competent rate.
Exported goods outside the GCC region are generally zero rated. Exports outside the GCC region are VAT charged at 0%. Accurate records must be retained to substantiate the zero rating.
We provide full VAT Services - from registration and returns, through audits, reconsiderations, and advisory. We can ensure you are fully compliant with the FTA and free from penalties.
Yes, businesses can deregister for VAT if they no longer exceed the taxable threshold or have closed down. We help with the correct deregistration processes so you won’t breach any regulations.
Yes, it’s strongly recommended to use accounting software that is FTA-compliant for accurate VAT reporting. We prefer to help with the integration of your systems and train your staff so you don’t end up with additional manual errors.
Yes. After your license and visa are issued, we will help you open a corporate bank account with leading banks which could be Emirates NBD, Mashreq, ADCB, etc. We will prepare your KYC documents so the ownership process runs smoothly.
The business registration can mostly be completed in a 2-5 business-day period in most Free Zones and 3-5 working days for Mainland setups and 5-7 days for Offshore companies. We ensure a smooth and quick process from beginning to end.
Ready to Simplify VAT Compliance for Your Business in Dubai?
Stay Legally Compliant, Avoid Penalties & Focus on Growth with Expert Tax Support
Whether you’re launching a startup, scaling an SME, or managing a large enterprise in the UAE, handling VAT can be overwhelming without proper guidance. From timely registration to accurate return filings and audit readiness, every step matters when it comes to staying on the right side of the Federal Tax Authority (FTA). Mistakes can lead to penalties, reputational damage, or even business disruption.
At dubaisetupnow, we offer comprehensive VAT services tailored to your business model—ensuring 100% compliance, accurate filings, seamless audits, and strategic tax efficiency. Whether you need help registering for VAT, appealing a penalty, planning tax strategies, or integrating automated VAT systems—we’ve got you covered with transparent, multilingual support and industry expertise.
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