VAT Registration
Mandatory Registration:
Applicable and Mandatory if the total value of its taxable supplies and imports exceeded the mandatory registration threshold of AED 375,000 over the previous 12 months, or the business expects that the total value of its taxable supplies and imports will exceed the mandatory registration threshold in the next 30 days.
Voluntarily Registration:
Applicable and Voluntary if the total value of its taxable supplies and imports or taxable expenses in the previous 12 months exceeded the voluntary registration threshold of AED 187,500, or the business expects that the total value of its taxable supplies and imports or taxable expenses will exceed the voluntary registration threshold in the next 30 days
Transactions subject to VAT
Transactions subject to 5% VAT:
All supplies that fall within the scope of UAE VAT and are not subject to the zero-rate
Transactions subject to 0% VAT:
To be aware of your VAT obligations in UAE, below list of transactions, provided that certain conditions for each (as mentioned in the legislation) are met:
Export of goods and services.
International transport of goods and passengers, and transport-related services.
Certain means of transport, such as trains, sea vessels and aircraft, and goods and services related to such means of transport.
First supply of residential buildings (lease or sale) within 3 years of finalizing their construction.
Airplanes and marine vessels designed for the purpose of rescue or aid through air or sea.
Certain precious investment metals.
Certain financial services.
Supply of residential units (lease or sale), if such supply is not subject to zero-rate.
Bare land.
Local passenger transport.
First supply of buildings specifically designed for charitable institutions (lease or sale).
First supply of buildings that were converted from non-residential to residential units (lease or sale).
Crude oil and natural gas.
Certain educational services and related goods and services.
Necessary and preventive healthcare services and related goods and services.
Transactions exempt from VAT:
To be aware of your VAT obligations in UAE, below list of transactions, accordingly provided that certain conditions for each (as mentioned in the legislation) are met:
Certain financial services.
Supply of residential units (lease or sale), if such supply is not subject to zero-rate.
Bare land.
Local passenger transport.
VAT Obligations in UAE
Mandatory documents to retain for VAT registered businesses
VAT registered businesses in UAE must retain following documentation:
Balance sheets and income statements (profit and loss accounts).
Records of wages and salaries.
Fixed asset records.
Inventory records and statements (including quantities and values) held at the end of any relevant Tax Period and all records of stock-counts related to inventory statements.
Any records as specified in tax law and other legislation.
Bookkeeping in compliance for VAT registered businesses must include records of:
Records of all supplies and imports of goods and services.
All tax invoices, tax credit notes and alternative documents received and issued.
Records of goods and services that have been disposed of or used for matters not related to the business, detailing the VAT paid on those goods and services.
Records of goods and services purchased for which input tax has not been deducted.
Records of exported goods and services.
Records of adjustments or corrections to accounts or tax invoices.