Since the 1st of January, 2018, the UAE has had a value added tax (VAT) on qualifying products and services. The tax is set at 5% of the value of goods or services sold. While the pricing of these products or services are to be advertised with the 5% VAT included, the selling price of the item and the percentage of value added tax need to be displayed separately on the invoice or bill of purchase. Certain businesses such as those engaged in the supply of aircrafts and ships are exempted from paying VAT. The FTA has set a voluntary registration threshold of sales reaching or exceeding AED 187,500 for VAT registration and AED 375,000 for mandatory registration.

On the 1st of June 2023, the Federal Tax Authority (FTA) introduced the Corporate Tax at 9% of the total profits generated by qualifying businesses that are over the threshold of AED 375,000. While all businesses in the Free Zone and Mainland across the UAE are required to register for Corporate Tax mandatorily, the liability of the business to pay tax depends on certain qualifying criteria such as reaching or exceeding an annual revenue of AED 3,000,000. Aside from this, FTA has also deemed certain business activities exempt from paying corporate tax, such as investment funds, government entities, and extraction of natural resources.

We offer VAT and Corporate Tax registration services as part of our suite of value-added solutions to help businesses operate smoothly and in full compliance with the FTA regulations at all times. This also includes quarterly VAT filings; monthly bookkeeping and accounting services through our licensed and qualified accounting partners.