Here are some common questions about Value Added Tax
1.What is Value Added Tax (VAT) in the UAE?
VAT is a consumption tax applied to the supply of most goods and services in the UAE. The standard VAT rate is 5%.
2.Who needs to register for VAT in the UAE?
Businesses must register for VAT if their taxable supplies and imports exceed AED 375,000 per year. Voluntary registration is allowed for businesses with taxable supplies and imports exceeding AED 187,500.
3.How do I register my business for VAT in Dubai?
VAT registration is done through the Federal Tax
4.What are VAT returns and how often must they be filed?
VAT returns summarize a business’s VAT liabilities and recoverable VAT. Most businesses must file VAT returns quarterly, while some may need to file monthly depending on turnover.
5.What happens if I fail to register or file VAT on time?
Late registration, delayed filing, or incorrect reporting may result in penalties and fines imposed by the FTA.
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