VAT Services in Dubai, UAE
Accurate, Compliant & Reliable VAT Services
VAT compliance is a legal obligation for every UAE business that exceeds the mandatory registration threshold of AED 375,000 in annual taxable turnover. Introduced at a standard rate of 5% in January 2018, UAE VAT is governed by Federal Decree-Law No. 8 of 2017 and enforced by the Federal Tax Authority (FTA).
At JP Global, we provide comprehensive VAT services in Dubai and across the UAE covering VAT registration on the FTA portal, quarterly and monthly VAT return preparation, VAT audit and health checks, advisory for complex scenarios (imports, exports, free zones, real estate), and deregistration. Our team of FTA-registered tax professionals ensures your business remains fully compliant, avoids penalties, and maximises available input tax credits.
| VAT Fact | Detail |
|---|---|
| UAE VAT Rate | 5% (standard rate) |
| Zero-rated Supplies | Exports, healthcare, education, some food items |
| Exempt Supplies | Bare land, residential property (resale), local passenger transport, financial services |
| Mandatory Registration Threshold | Mandatory Registration Threshold AED 375,000 annual taxable turnover |
| Voluntary Registration Threshold | Voluntary Registration Threshold AED 187,500 annual taxable turnover |
| VAT Return Filing Deadline | 28 days after end of tax period |
| Tax Period (Standard) | Quarterly |
| Tax Period (Large Businesses) | Monthly (annual supplies above AED 150M) |
| Late Filing Penalty | AED 1,000 (first offence), AED 2,000 (repeat) |
| Governing Authority | Federal Tax Authority (FTA), UAE |
| Effective Since | 1 January 2018 |
| Governing Law | Federal Decree-Law No. 8 of 2017 |
VAT Penalties Reference
| Violation | FTA Penalty |
|---|---|
| Late VAT registration | AED 20,000 |
| Late VAT return filing (first offence) | AED 1,000 |
| Late VAT return filing (repeat offence) | AED 2,000 |
| Late VAT payment | 2% of unpaid tax immediately + 4% if still unpaid after 7 days + 1% daily after 30 days (max 300%) |
| Failure to maintain required records | AED 10,000 (first offence), AED 50,000 (repeat) |
| Incorrect VAT return submitted | 50% of unpaid/undeclared tax |
| Failure to display prices inclusive of VAT | AED 15,000 |
| Failure to issue a tax invoice | AED 5,000 per missing invoice |
VAT Registration Services
Businesses with annual taxable supplies exceeding AED 375,000 must register for VAT with the FTA — mandatory registration. Those between AED 187,500 and AED 375,000 may register voluntarily. JP Global handles the complete FTA portal registration process, obtains your Tax Registration Number (TRN), and ensures your registration status correctly reflects your business structure — whether you are a mainland company, a free zone entity, or part of a VAT group.
Services Include:
- VAT registration on FTA portal
- Determining mandatory vs voluntary registration
- VAT group registration
- TRN issuance assistance
- VAT applicability assessment for free zone entities
VAT Return Filing
UAE VAT returns must be filed within 28 days of the end of each tax period monthly for businesses with annual taxable supplies above AED 150 million, and quarterly for all others. Late filing attracts a fixed penalty of AED 1,000 for the first offence, rising to AED 2,000 for repeat offences, plus percentage-based penalties on outstanding VAT. JP Global prepares and submits your VAT returns accurately and on time, managing output VAT, input VAT recovery, reconciliations, and all adjustments for credit notes, bad debts, and zero-rated supplies.
Our VAT Filing Services Include:
- Monthly/Quarterly VAT return preparation
- Review of VAT transactions
- Reconciliation of accounts
- Adjustments for credit notes, bad debts & exemptions
- FTA-compliant submission
VAT Audit & VAT Health Check
We Provide:
- Review of invoices, accounts & ledgers
- VAT risk assessment
- Identification of non-compliant entries
- Recommendations for improving processes
- FTA audit preparation & support
VAT Advisory Services
UAE VAT applies differently depending on your business structure and the nature of your supplies. Free zone companies operating within Designated Zones may be treated outside the UAE VAT system for goods, while services remain taxable. Mainland companies must account for the reverse charge mechanism on imported services. Real estate transactions involve a mix of exempt and zero-rated supplies depending on the property type and usage.
JP Global’s VAT advisory team guides Dubai and UAE businesses through all complex VAT scenarios, ensuring correct treatment of imports, exports, intercompany transactions, e-commerce supplies, and multi-jurisdiction operations. Our advisors are actively updated on FTA public clarifications, Cabinet Decisions, and Ministerial Decisions affecting UAE VAT.
Advisory Includes:
- Reverse charge mechanism
- VAT on imports & exports
- VAT for free zones & designated zones
- VAT for real estate, eCommerce & services
- VAT refunds for businesses
VAT Deregistration
Services Include:
- Filing VAT deregistration request
- Preparing final VAT return
- Ensuring all liabilities are cleared
WHY BUSINESSES CHOOSE JP GLOBAL
- Expert team specializing in UAE tax laws
- End-to-end corporate tax, VAT, ESR & TP services
- 100% FTA-compliant filings and documentation
- Tailored tax strategies for all business structures
- Support for free zone, mainland & multinational companies
- Transparent pricing with exceptional support
What is the VAT registration threshold in UAE?
Businesses with annual taxable supplies exceeding AED 375,000 must register for VAT mandatorily. Voluntary registration is available for those between AED 187,500 and AED 375,000. |
What is the VAT rate in UAE?
The standard UAE VAT rate is 5%, introduced on 1 January 2018 under Federal Decree-Law No. 8 of 2017. Some supplies are zero-rated (0%) or exempt.
When must UAE VAT returns be filed?
UAE VAT returns must be filed within 28 days of the end of each tax period. Most businesses file quarterly; those with annual taxable supplies above AED 150 million file monthly.
What is a TRN number in UAE?
A Tax Registration Number (TRN) is a unique 15-digit number issued by the FTA upon VAT registration. It must appear on all tax invoices issued by the registered business.
Do free zone companies need to register for VAT in UAE?
It depends. Free zone companies in Designated Zones may have different VAT treatment for goods but must account for VAT on services. JP Global advises on the correct VAT position for your specific free zone.
What is the penalty for late VAT filing in UAE?
The FTA imposes AED 1,000 for the first late filing offence and AED 2,000 for subsequent offences, in addition to percentage-based penalties on any outstanding VAT amount.
What is the difference between VAT deregistration and VAT exemption in UAE?
VAT deregistration is the process of cancelling your FTA VAT registration when your taxable supplies fall below the threshold or your business closes. VAT exemption refers to specific supplies (not businesses) that are outside the scope of VAT by law.
Can JP Global represent us in an FTA VAT audit?
Yes. JP Global provides complete FTA audit preparation and representation services, including document review, response preparation, and on-site support during the audit process.