VAT Filing Made Simple: Everything You Need to Know
If you’re planning to start a business in Dubai, it's crucial to understand all compliance requirements — especially VAT registration. Dubai is known for its business-friendly environment, but it also has strict regulations. One of the most important among them is VAT (Value Added Tax), and non-compliance can lead to serious penalties. At Make My Firm, we specialize in business setup services in Dubai, helping entrepreneurs like you smoothly navigate company formation, VAT registration, and other legal requirements. With over a 95% success rate, our team ensures every step is handled professionally and efficiently.
What Is VAT? VAT (Value Added Tax) is a consumption tax applied at each stage of production and distribution. In the UAE, VAT is charged at a flat rate of 5% on most goods and services. Businesses collect this tax from customers and remit it to the government. VAT supports public infrastructure and services in the UAE.
If you're setting up a company in Dubai, understanding VAT is essential, as it affects pricing, finances, and business operations from day one.
VAT Registration in the UAE: Step-by-Step 1. Register with the Federal Tax Authority (FTA) Begin by registering your company on the FTA’s official portal. Required documents include: ● ● ● ●
Trade license Emirates ID Business activity details Financial records
2. Receive Your TRN (Tax Registration Number) After submitting your documents, you'll receive a TRN. This number is mandatory on all VAT-related documents, including invoices.
3. Start Charging VAT Once you receive your TRN, start charging VAT on applicable goods and services and include the TRN on invoices to maintain compliance.
Key VAT Concepts for Dubai Entrepreneurs ● VAT Threshold: Mandatory registration is required if your taxable turnover exceeds AED 375,000 per year. Voluntary registration is allowed if your turnover is above AED 187,500. ● Exempt Categories: Certain services like healthcare, education, and exports outside the GCC are VAT exempt. ● Input vs. Output Tax: ○ Output Tax: VAT collected on sales ○ Input Tax: VAT paid on business purchases You can deduct input tax from output tax to determine your VAT liability.
VAT Filing & Compliance
VAT returns must be filed quarterly or annually, depending on your business structure. ● Filing Deadline: Submit VAT returns within 28 days after the end of the tax period. ● Payments: Pay any owed VAT promptly to avoid penalties.
Common VAT Mistakes to Avoid ● Late registration ● Inaccurate or missing invoices ● Poor recordkeeping
Why Choose Make My Firm? With Make My Firm, you get: ● ● ● ●
End-to-end VAT registration support Expert handling of documentation Ongoing compliance guidance Peace of mind knowing your business is in safe hands
