Centric Consultants

The United Arab Emirates (UAE) introduced Value Added Tax (VAT) on 1st January 2018. VAT is a consumption tax that is applied to the value added at each stage of production or distribution of goods and services. The current standard VAT rate in the UAE is 5%.
 

Under the UAE VAT regime, businesses that have an annual turnover of AED 375,000 or more are required to register for VAT. Once registered, businesses must charge VAT on their taxable supplies and file regular VAT returns with the Federal Tax Authority (FTA).
 

In addition to the standard VAT rate of 5%, there are also zero-rated and exempt supplies. Zero-rated supplies are taxable supplies that are charged at 0% VAT, such as exports of goods and services. Exempt supplies, on the other hand, are supplies that are not subject to VAT, such as financial services, healthcare, and education.

VAT registration and compliance can be complex, and businesses may face penalties for non-compliance. Therefore, it is important for businesses to seek professional advice and support to ensure that they comply with the VAT regulations.

The United Arab Emirates  is set to implement new corporate taxes,  As a result, businesses operating in the UAE will need to prepare for these changes to avoid being caught off guard.

To minimize their tax obligations, businesses can take advantage of various tax planning strategies. For example, they can explore opportunities to claim deductions and exemptions, as well as consider restructuring their operations to reduce their tax liability. Centric Consultants can help support in this front.