Masar Legal Accounting Office assists you in completing all procedures and steps for UAE VAT compliance on your behalf. This type of tax has an indirect impact on consumption and applies to most goods and services supplied at each stage of the supply chain. Therefore, it is essential to comply with the laws and regulations governing it, which our office strives to clarify for you.

UAE VAT compliance

Compliance with VAT in the UAE requires adherence to specific laws and procedures established by the Federal Tax Authority (FTA), including:

Registration

Mandatory registration: Required for individuals or companies whose annual revenue exceeds AED 375,000.

Voluntary registration: Permissible when revenue is below AED 375,000.

VAT calculation

The VAT rate in the UAE is 5% on most goods and services. Registered businesses can claim VAT deductions on purchases from clients.

Tax return filing

Companies must submit tax returns periodically (monthly or quarterly) based on their revenue size. The FTA mandates submission within 28 days after the tax period ends, emphasizing timely payment of due taxes to avoid penalties.

Invoicing

Companies are required to issue invoices containing all relevant details, such as their name, tax registration number, invoice date, sales value, and VAT amount.

Compliance with specific provisions

Some goods and services are VAT-exempt in the UAE, such as education, healthcare, and certain financial services. Others may be partially exempt or subject to a zero rate, such as exports outside the GCC region.

Verification

The FTA may conduct investigations and audits to ensure the company’s compliance with tax laws. This may involve reviewing accounting records, invoices, and other documentation.

Updates

Companies must stay updated with any changes to VAT laws to ensure continuous compliance.

The best legal accounting office in UAE

Masar Legal Accounting Office provides comprehensive details on UAE VAT compliance including sectors subject to a zero rate and specific exemptions granted by the state. These exemptions apply to companies exporting products abroad or operating in free zones. We also clarify penalties, fines, and other related matters that you need to be aware of.

VAT violations in UAE

Masar Legal Accounting Office provides a comprehensive guide to UAE VAT compliance along with details of the penalties imposed by the Federal Tax Authority (FTA), as follows:

Failure to register

If a company or business fails to register under the VAT system despite exceeding the mandatory threshold, a fine of AED 10,000 will be imposed for the first offense. This amount may increase for repeated violations.

Incorrect or incomplete tax returns

Submitting incomplete or incorrect tax returns, including errors, incurs a fine of 1% of the due tax for each day of delay.

Late payment of tax

A penalty of 2% is imposed for late payment of tax, which increases to 4% if payment is delayed beyond seven days.

Failure to retain records and invoices

A fine of AED 10,000 is imposed for each violation involving the failure to retain proper records and invoices.

In conclusion, after clarifying the steps for UAE VAT compliance as we assure you that the only office capable of helping you achieve these steps effortlessly and efficiently is Masar Legal Accounting Office. As one of the best accounting and legal firms in the UAE, we assist you in obtaining all the accounting and legal services you need with ease.

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