VAT consultants in Dubai

UAE has introduced VAT in 2018. This indirect tax changed the way local companies are doing the business. Many of them are hiring VAT consultants in UAE in order to be sure they do accounting and VAT filing properly. 

Even though most UAE authorities do not require to file auditing reports of financial files, it has become advisable that every company does accounting. 

Keeping the books is important for your own corporate records. It helps to have a clear picture of income and expenses and plan future spendings. 

VAT rules in UAE

In the UAE, Value Added Tax (VAT) has been in place since 1 January 2018 at a standard rate of 5% on most supplies of goods and services. Those who plan to set up a company in Dubai must assess the VAT treatment of their transactions based on the place of supply, type of supply (goods or services), and whether the customer is a business or a consumer.

Companies registered on the UAE mainland and in free zones are generally subject to the same VAT framework, provided they make taxable supplies in the UAE. The fact that a business operates from a free zone does not automatically exempt it from VAT. VAT registration is still required once the applicable thresholds are met. Certain designated zones are treated as being outside the state for specific supplies of goods, subject to strict conditions on storage, movement, and documentation. These rules can significantly affect import, export, and warehousing structures, especially for trading and logistics businesses.

Offshore entities (such as JAFZA Offshore or RAK ICC companies) are generally not permitted to conduct business within the UAE market and therefore usually fall outside the scope of UAE VAT. However, they must be used strictly for their intended purposes, and any planned activities should be reviewed to confirm whether VAT implications arise.

A business must mandatorily register for VAT if its taxable supplies and imports exceed AED 375,000 over the previous 12 months or are expected to exceed this threshold in the next 30 days. Voluntary VAT registration is possible from AED 187,500 in taxable supplies and imports, which can be beneficial for start‑ups and growing businesses.

In most cases, VAT‑registered businesses in the UAE are assigned a quarterly tax period for filing VAT returns and paying any VAT due. However, the FTA may grant a monthly tax period for larger or higher‑risk businesses. The assigned tax period is confirmed by the FTA in the VAT registration certificate and must be strictly followed.

Recent amendments to the UAE VAT legislation, effective from 1 January 2026, further refine procedural rules around reverse charge, input tax recovery, and timelines for filing corrections and refunds. These changes increase the importance of having robust VAT processes and documentation in place. Emirabiz supports clients in reviewing contracts, tax positions, and reporting procedures to ensure they remain compliant with the latest VAT rules and FTA guidance.

E‑invoicing and digital VAT compliance

The UAE is introducing a nationwide e‑invoicing framework that will gradually become mandatory for VAT‑registered businesses. A pilot phase is expected to start in 2026, followed by phased mandatory adoption for selected categories of taxpayers from 2027 onwards.

Under the e‑invoicing system, tax invoices and credit notes will need to be issued in a structured electronic format, transmitted and stored in line with specific technical and legal requirements. This will have a direct impact on accounting systems, approval workflows, and document archiving processes.

Emirabiz assists clients in assessing their readiness for e‑invoicing, defining the functional requirements for ERP and accounting systems, and aligning invoice formats and processes with upcoming FTA specifications. Early preparation helps businesses avoid disruption and reduce the risk of non‑compliance penalties once e‑invoicing becomes mandatory.

If your company becomes liable for VAT, do not forget to add that 5% to every Invoice. 

The easiest way to pay your VAT is to open bank account in Dubai.

VAT Penalties and Fines in the UAE

Generally, fines and penalties in UAE are quite severe. As a business, you need to be sure you comply with FTA regulations to avoid unpleasant “surprises”. 

The FTA imposes significant administrative penalties for VAT non‑compliance, including failure to register or deregister on time, late filing or payment of VAT returns, issuing incorrect or incomplete tax invoices, and maintaining inadequate records. Penalties are subject to periodic updates by the FTA and are set out in the official table of administrative penalties published on the FTA website. In practice, sanctions for repeated or serious breaches can reach tens of thousands of dirhams, especially where errors remain uncorrected for multiple tax periods.

Emirabiz helps businesses minimize their exposure to penalties by reviewing VAT processes, ensuring proper invoicing and documentation, and assisting with voluntary disclosures and corrective filings where needed. 

However, you should be careful when registering with FTA, because not every business needs to be registered and pay VAT. In case you register incorrectly, financial penalties will be imposed on your company. 

In case you liquidate your company, do not forget that you should deregister with FTA. Fine for late de-registration may reach 10,000 AED.

VAT and Corporate Tax go hand in hand

Since the introduction of UAE Corporate Tax, VAT and corporate tax compliance have become closely interconnected. Inconsistent treatment of income and expenses for VAT and corporate tax purposes can trigger questions from the authorities and complicate audits.
Emirabiz offers integrated support covering both VAT and Corporate Tax, helping businesses align their accounting policies, documentation, and reporting across both regimes. This holistic approach reduces compliance risk and provides better visibility over the overall tax position of the company.

VAT services in Dubai offered by Emirabiz

• Monthly accounting
• Audit reports 
• VAT registration 
• Filing of VAT returns 
• Visiting accountant - our accountant comes to your office 
• Preparation of Invoices and records keeping 

E‑invoicing implementation support:

• Gap analysis of current invoicing and documentation processes against upcoming e‑invoicing requirements.
• Coordination with software vendors and IT teams to configure ERP and accounting systems for compliant e‑invoicing.
• Designing and testing compliant tax invoice and credit note formats.
• Training finance and operations teams on new e‑invoicing workflows and controls.

Tax agent in UAE can answer most important VAT questions you have:

• Do free zone companies need to pay VAT? 
• Can an offshore company get a tax registration number? 
• How to prepare VAT reports for Federal Tax Authority?
• Do I need to pay VAT if my business is conducted abroad?
• Are my Invoices issued correctly?

Tax agent in UAE can answer most important VAT questions you have:

• Do free zone companies need to pay VAT? 
• Can an offshore company get a tax registration number? 
• How to prepare VAT reports for Federal Tax Authority?
• Do I need to pay VAT if my business is conducted abroad?
• Are my Invoices issued correctly?