UAE VAT Compliance

A UAE-resident business is generally required to register when its taxable supplies and imports exceed AED 375,000 over the previous 12 months, or are expected to exceed that amount in the next 30 days. Voluntary registration may be available when relevant taxable supplies, imports or taxable expenses exceed AED 187,500. Different rules apply to non-resident businesses, so the position should be assessed using the actual activities and circumstances.

The standard VAT Tax Period is generally three calendar months, although the FTA may assign a different period, including monthly reporting in some cases. VAT returns and any related payment are generally due within 28 days after the end of the assigned Tax Period. The business should follow the specific filing calendar shown in its EmaraTax account.

Records typically include sales and purchase ledgers, tax invoices, credit notes, customs documents, VAT control accounts and previous returns. We can work alongside an internal finance team or external accountant to reconcile these records, raise exceptions and prepare the return workings. Clear responsibilities and deadlines are agreed before the engagement begins.

Reliable VAT returns depend on sufficiently complete and reconciled accounting records. If the books are incomplete, unreconciled or lack supporting tax documentation, we first identify the outstanding work and its impact on the VAT position. Where necessary, accounting clean-up or catch-up work can be handled through a separate Accounting & Bookkeeping scope while appropriate VAT work continues where possible.

Yes. Free Zone status does not automatically remove a business from UAE VAT. The treatment depends on the specific transactions and whether the location is a Designated Zone meeting specific conditions. Free Zone businesses should assess registration and transaction treatment based on their actual operations.

A net refundable position may be carried forward or may support a refund request. However, a refund is not guaranteed simply because input VAT exceeds output VAT. The underlying transactions, recovery eligibility and supporting evidence should be reviewed carefully before submitting a refund application.

VAT deregistration depends on the circumstances. It may become mandatory where the business stops making taxable supplies or no longer meets the conditions for VAT registration, including where relevant taxable activity falls below the voluntary registration threshold and is not expected to exceed it in the applicable forward-looking period. Where deregistration is mandatory, the application generally must be submitted within 20 business days from the date the deregistration obligation starts. Businesses whose taxable activity remains above the voluntary threshold but below the mandatory threshold may need to assess whether voluntary deregistration is available.

Yes. VAT and Corporate Tax are separate UAE tax regimes with separate registration, return and compliance obligations. Being registered for VAT does not register a business for Corporate Tax, and a business must assess its obligations under both regimes independently.

The matter should first be assessed to determine the affected period, value and required response. Depending on the facts, a correction in a subsequent return or a Voluntary Disclosure may apply. We can support reviews of historic errors and FTA queries within an agreed scope, though we cannot guarantee penalty relief or specific FTA outcomes.

Fees depend on the registration status, assigned tax period, transaction volume, number of entities, VAT complexity, condition of the accounting records and whether historical issues exist. We review the starting position and provide a proposal based on the agreed scope rather than a generic package.