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Learn Everything about VAT Services in UAE

What are the VAT Services in the UAE? For getting the answer of this question we should first know that what is the VAT actually? Right! So let me shed some light on the VAT in the UAE first then we will move toward the VAT services. VAT stands for “Value Added Tax”. It is the tax on the use of goods or services which is imposed on every single level of sale. It is actually a form of indirect taxes and is being implied in more than 180 countries around the globe. So, one thing is understood that it is popularly referred to all over the world.

Who Bears the Value Added Tax?

The ultimate burden of all the Value Added Taxes will be on the end-consumer.

Roll of Businesses in the Value Added Tax

The roll of businesses is to assemble and account the VAT on behalf of the Govt.

Entry of VAT in the United Arab Emirates

Current year, I mean 2018 is the year when the VAT was introduced in the United Arab Emirates. It was the first day of the year i:e 1st January 2018.

Percentage of VAT in the UAE

The UAE govt. decided 5% VAT which is certainly best thing for adding a new source of income to the UAE.

VAT applies on Businesses

It may be applied on the mainland companies as well as on the free zone companies, the basic thing is that business should be tax registered. So, VAT applies on all the businesses which are tax- registered.

VAT applies on Goods

VAT is not applicable on all the goods. It is exempted on around 100 food items, healthcare, educational and social services.

VAT on Renting Property

If you own a residential building then don’t worry because VAT will not be implemented in a residential buildings in the UAE. However, if you have commercial buildings then the same percentage of VAT will be imposed on your property i:e 5%.

VAT on sale or lease of Real Estate

According to the FTA (UAE Federal Tax Authority), the sale or lease of any residential real estate property will be exempted from the VAT.

VAT on Transportation in the UAE

FTA (Federal Tax Authority of UAE) recently issued Public Clarification in November 2018. The source of the means of conveyance shall be subject to the zero rate in the case of, a supply of bus or train that is designed or adapted to be used for public transportation of (10) or more passengers. The FTA has clarified that whether or not the original source of the means of transportation capable for zero rating. It has no influence on the VAT liability of any charges made for the supply of conveyance services.

If we will conclude the transportation VAT then we can say that if the supply is for using for the private transport, it shall be taxable at standard rated i:e 5%. On the other hand if planned to use for public transportation, then supply of means of transport will be Zero Rated.

What are VAT services in the UAE?

Many firms are providing VAT consulting services in Dubai. They provide professionals to assist and provision in filing VAT tax returns, assembling prerequisite tools and technologies designed for the same and also VAT authorized staff. There are many VAT consultants in the UAE and you can avail the following services from a VAT consultant:

  • VAT registration services in Dubai, UAE.
  • VAT consultation services in Dubai, UAE.
  • VAT return filling services.
  • Accounting and auditing services for small and medium sized companies in Dubai, UAE.

Concluding Remarks:

I hope I have discussed all the most important questions about the VAT services. All companies should must charge VAT on taxable goods or services they supply. You can contact to a trustworthy company in the UAE for getting the VAT services in the UAE. First check the real customer reviews on the Google page of the company then ask some specific questions about their business like how many businesses are getting their services. From how many years the company is providing the services in the UAE. Hope you have enjoyed our article. You can share your point of views about the VAT services in the comment section.


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