Value Added Tax (VAT) was introduced in the UAE on 1 January 2018.

The registration for VAT with the Federal Tax Authority is mandatory for any business if:

• The total value of their taxable supplies and imports made within the UAE exceeds the Mandatory Registration Threshold of AED 375,000 over the previous 12-month period; or
• The business anticipates that the total value of their taxable supplies or imports will exceed AED 375,000 in the next 30 days.

It is crucial for registered businesses to remain compliant with the VAT law, rules and regulations to avoid substantial penalties. Penalties can be imposed on:

• Non-payment of VAT;
• Failure to submit the tax return within the timeframe specified in the Tax Law;
• Failure to submit a registration application within the timeframe specified in the Tax Law;
• The submittal of an incorrect tax return etc.

Our team of legal advisors and tax consultants will support you every step of the way from initial advice and planning through to registration of your company with the Federal Tax Authority, advising on VAT compliance and providing legal opinion addressing VAT issues faced by your business.

Contact us for more details.