UAE tax value added in the UAE is an indirect tax imposed by the government on certain goods, services, and products supplied. However, it is ultimately borne by the end consumer. VAT serves as a new source of government income used to develop public services, support systems and policies, and foster a knowledge-based economy to attract investors across all sectors.

UAE tax value added in the UAE

VAT is a tax applied to goods and services throughout the supply chain, from production to sale. It is one type of sales tax applied to taxable products. First implemented in the UAE on January 1, 2018, VAT is charged at a standard rate of 5% on most goods and services, while certain products are zero-rated.

Calculating VAT in the UAE

The government mandates that businesses registered for UAE tax value added maintain records detailing profits and tax amounts due. VAT is calculated at 5% of total inputs and must also be paid by businesses that acquire goods and services at the same rate.

However, companies are not required to pay the total VAT accumulated on sales. Instead, VAT is calculated using this formula: VAT = Output Tax – Input Tax.

Requirements for VAT registration

Masar Legal Accounting Office assists businesses with VAT registration in the UAE by helping prepare the following documents:

• A copy of the company’s tax registration certificate.
• Establishment contract and commerce license copy.
• Copies of identity cards or passports.
• A personal information file for the manager.
• A copy of the lease agreement.
• Customs registration number.
• IBAN (International Bank Account Number).
• A statement of the company’s supplies.

UAE tax value added for non-residents

Previously, all shoppers were required to pay UAE tax value added in the UAE. However, since November 2018, the Federal Tax Authority has allowed tourists to claim VAT refunds on their purchases, subject to the following conditions:

• The tourist’s stay in the UAE does not exceed 90 days.
• The purchased goods are not carried out of the UAE.
• The goods are not excluded from the refund system.
• The seller is registered in the VAT system.
• Refund requests can be made at the store by presenting a passport, where details are entered into the Planet electronic system.
• Refunds can then be collected in cash at the airport from the VAT refund counter.

Best consultant for UAE tax value added

Masar Legal Accounting is recognized as a top choice for VAT consultation in the UAE for the following reasons:

• Their consultants are meticulous in preparing and reviewing records and files.
• The firm has extensive experience in assisting businesses with VAT registration.
• A skilled team of accountants and VAT specialists ensures fast and efficient service.
• Their consultants maintain accurate records over the years and prepare companies for VAT registration, reducing the risk of errors in tax returns and avoiding legal issues.

This guide explains how UAE tax value added is calculated in the UAE, why Masar Legal Accounting is a reliable partner for VAT registration, and how their expertise ensures compliance with legal requirements efficiently and professionally.

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