Vat Tax in the UAE

Astorts Group delivers bespoke VAT conformity consultancy in the United Arab Emirates beyond mere form‑filling or portal submissions. Since VAT’s inception on 1 January 2018, companies have had to overhaul bookkeeping routines, redefine billing flows, and embed tax controls within operational systems. We guide clients through these transformations, enabling them to translate regulatory obligations into efficient financial frameworks.

We recognize that VAT intersects with margins, pricing strategy, procurement cycles and growth plans. Our advisory is rooted in sector‑specific analytics, ensuring every VAT-related process reflects the business’s actual transactional profile rather than generic best practices.

Through tailored diagnostics, technical integration, and regulation-sensitive design, we support startups, SMEs, free-zone registrants and international corporations in establishing VAT governance protocols that mitigate exposure and support resilience. Our focus is on embedding compliance as part of scalable infrastructure—not an administrative afterthought.

What VAT Means In UAE Context

Value Added Tax in the UAE represents a federally mandated consumption levy retrieved at every step of a supply chain. Established via Government Resolution No 52 of 2017, the tax became effective in January 2018 at a flat percentage of 5%. Mandatory registration is triggered when VAT-applicable transactions supplies and imports surpass AED 375,000 annually, turnover from AED 187,500 to AED 375,000 can qualify for non-compulsory enrolment.

Unlike corporate income taxation, VAT is transaction-centric. Every invoice, payment, or discount affects the net payable tax. Corporations obliged to provide invoices that comply with FTA specifications, track input and charged VAT, and retain transaction-level documentation for audit readiness. Astorts Group’s VAT advisory encompasses:

1. Financial Data Structuring. Developing ledgers and journal templates aligned with VAT categories.
2. Financial Statement Adaptation. Ensuring trial balances and internal financial reports properly reflect VAT lines.
3. FTA Registration And Return Filing. From TRN acquisition through e‑submissions.
4. Payroll VAT Integration. Structuring payslips and remuneration solutions for entities engaging in taxable activities.
5. Customs And Import Advisory (EORI Support). Assisting with VAT accounting for international operations.
6. Tax Health Reviews And Self‑Assessment. Identifying optimization opportunities and adherence gaps.

Every service offering is calibrated based on transactions volume, sector, and operational complexity.

Astorts Group Team

We are a Professional Business Advisor Firm based in Dubai, London and Singapore, with Affiliates and Partners in many World Financial Capital City.

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Regulatory Obligations And Core VAT Standards

VAT oversight falls under the Federal Tax Authority, which enforces compliance through automated systems and routine reviews. Registered entities must demonstrate continuous control over VAT treatment across procurement, billing, and refunds. Obligations under UAE VAT legislation include:

• applying a uniform 5% tax rate to all standard supplies;
• submitting VAT declarations in line with your designated cycle (once per quarter or every month);
• delivering compliant invoices showing TRN, taxable totals, and VAT line details;

• retaining transaction-level documentation, invoices, and adjustment data archived for five years minimum;
• accurately reconciling input VAT claims and recognizing partial exemption rules;
• registering in and notifying changes via the FTA portal promptly;
• managing reverse-charge accounting for imported services or cross-border supplies;
• completing digital payments and declarations exclusively via the FTA system.

Designated zones may qualify for VAT exclusions if goods remain within controlled free-zone movement parameters. Astorts Group offers scenario-based interpretation, sector-specific advice (e.g. for real estate, hospitality, digital services), and review of group filings or internal VAT allocation.

End‑to‑End VAT Compliance Journey

Astorts Group steers clients through every step of VAT implementation:

• Pre‑Registration Diagnosis. Assess if your transaction profile meets domestic or export thresholds.
• FTA TRN Application. Preparation, data collation and liaison until confirmation issuance.
• System Integration Audit. Modification of accounting, invoicing and POS systems to reflect VAT rates and codes.
• Periodic VAT Filing. Compilation of VAT returns, calculation of net dues, electronic submission, and timely payment.
• Beyond Filing. Ongoing compliance audits, representation during FTA queries or audits, and proactive planning around voluntary disclosures.

We can also assist with VAT grouping strategies, partial exemption models, and structuring multinational issuing invoices in a compliant but tax-efficient manner.

Request Your Tailored VAT Conformity Proposal

All companies in the UAE carries a unique VAT footprint shaped by revenue patterns, cost streams, and operational channels. Astorts Group offers modular service tiers priced according to actual tax complexity, invoicing frequency, and FTA interactions required.

Submit a request for your bespoke VAT compliance plan and quote, and we will provide a clear, actionable roadmap tailored to your fiscal ecosystem. From single‑registration tasks to year‑round support frameworks, we ensure VAT obligations enhance—not impede—your strategic objectives.

Astorts Group Team

We are a Professional Business Advisor Firm based in Dubai, London and Singapore, with Affiliates and Partners in many World Financial Capital City.

Contact us