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Looking for a hassle-free VAT experience in the UAE? Our Value Added Tax services in Dubai are designed to simplify compliance. We manage all the complexities, ensuring your business meets regulatory requirements smoothly — so you can stay focused on growth while we take care of the rest.
The United Arab Emirates introduced Value Added Tax (VAT) on January 1, 2018, as part of a broader strategy to diversify its economy. With a standard VAT rate of 5%, the UAE maintains one of the lowest indirect tax rates globally. VAT applies to the majority of goods and services and serves as a critical source of revenue to support national infrastructure and public services.
At Smart Biz Setup, we help businesses in the UAE navigate VAT regulations confidently and compliantly. VAT registration is mandatory for businesses with an annual turnover exceeding AED 375,000, while those earning between AED 187,500 and AED 375,000 can register voluntarily.
Once registered, your business is required to charge VAT on taxable supplies, collect VAT from customers, and file periodic VAT returns. This includes reporting input tax (VAT paid on purchases) and output tax (VAT charged on sales).
Smart Biz Setup offers specialized VAT consultancy and audit services to ensure that your business meets all compliance obligations as per the Federal Tax Authority (FTA) guidelines. Our expert consultants assist you in reclaiming input tax, minimizing liabilities, and ensuring that your business operations remain penalty-free.
Our VAT services in Dubai include:
VAT Registration & Deregistration
VAT Return Filing
Input Tax Recovery Assistance
VAT Compliance Checks
Detailed VAT Audits
Consultancy on VAT Laws and Updates
With our support, you can focus on your business growth while we manage your VAT responsibilities with accuracy and efficiency. Partner with Smart Biz Setup to ensure VAT compliance, improved financial clarity, and peace of mind.
Voluntary VAT registration allows businesses to register for VAT even if their taxable turnover has not yet reached the mandatory threshold. If a company’s taxable supplies or expenses exceed AED 187,500 within the past 12 months, it becomes eligible for voluntary registration in the UAE.
Choosing this option enables businesses to reclaim input VAT—the tax paid on purchases—ultimately enhancing cash flow and reducing operational costs. It also adds credibility and prepares the business for future growth under full compliance with UAE VAT laws.
Mandatory VAT registration applies to businesses in the UAE whose taxable supplies and imports exceed AED 375,000 over the previous 12 months. This threshold is set by the Federal Tax Authority (FTA) and is legally binding.
Once registered, the business is required to charge VAT (output tax) on all taxable sales and submit regular VAT returns to the FTA. This ensures proper reporting and collection of VAT across the supply chain.
Failure to register within the required timeframe can result in significant penalties, fines, and legal action. At Smart Biz Setup, we guide you through the entire VAT registration process, ensuring full compliance and helping your business avoid regulatory risks.
Yes, VAT is applicable in UAE Free Zones; however, its implementation varies depending on the zone’s classification. Designated Free Zones, as defined by the Federal Tax Authority (FTA), are subject to specific VAT rules. While certain business-to-business transactions within these zones may be zero-rated or exempt, most goods and services consumed within the zone are still subject to the standard 5% VAT.
Businesses operating in Free Zones must evaluate their VAT obligations carefully. The mandatory VAT registration threshold remains at AED 375,000 in annual taxable turnover, while businesses earning AED 187,500 or more may choose to register voluntarily.
We offer end-to-end VAT solutions designed to keep your business fully compliant with UAE tax regulations.
01. Account Setup Assistance
We provide full support for VAT account creation, guiding you from initial registration to ongoing system maintenance, ensuring a smooth onboarding with the Federal Tax Authority (FTA).
02. Documentation Preparation
Our experts handle all necessary documentation for VAT registration—evaluating, organizing, and preparing all required forms and evidence for seamless processing.
03. TRN Certificate Acquisition
We assist in obtaining your Tax Registration Number (TRN) certificate, ensuring full compliance with legal protocols and proper certification.
04. VAT Registration Support
Our team manages the complete VAT registration process with UAE tax authorities, enabling your business to charge and remit VAT on taxable transactions legally and efficiently.
05. VAT Return Filing
We ensure timely and accurate submission of VAT returns, clearly reporting both output VAT (sales) and input VAT (purchases) for each tax period.
06. VAT Refund Processing
If your input VAT exceeds output VAT, we handle refund claims on your behalf, ensuring maximum recovery with minimal delay.
07. VAT Audit Assistance
In case of audits by the FTA, we provide full support—organizing transaction records, ensuring compliance, and representing your interests throughout the audit process.
08. VAT-Compliant Accounting
We implement reliable VAT accounting systems that maintain precise records of VAT-related activities, enabling accurate reporting and full regulatory adherence.
09. VAT Deregistration
When your business no longer meets the VAT registration threshold or undergoes closure, we manage the formal VAT deregistration process to keep your legal status updated.
Whether you’re a startup, entrepreneur, or global investor, Smart Biz makes your UAE business formation simple, fast, and fully compliant. From Freezone and Mainland to Offshore setups, we manage everything — licensing, visas, banking, VAT, and more.
Book your free consultation today and take the first step toward your UAE business journey.
At Smart Biz Setup, we specialize in helping entrepreneurs, startups, and global investors establish their businesses in the UAE with ease and confidence.
Have questions or need assistance? Our team is here to help – don’t hesitate to reach out.
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