VAT in Dubai, a guide for businesses in the UAE
Value added tax in Dubai: what entrepreneurs need to know, mandatory registration above AED 375,000, online registration with the FTA, goAML obligations and more.
The UAE, and Dubai in particular, attracts international entrepreneurs with highly attractive conditions for doing business. Alongside the economic advantages, however, tax rules have to be observed, especially when it comes to value added tax (VAT).
What is VAT in Dubai?
Value added tax was introduced on 1 January 2018 and stands at 5% on most goods and services. The Federal Tax Authority (FTA) administers this tax.
Who has to register for VAT in Dubai?
Businesses with annual turnover above AED 375,000 (around 93,000 euros) must register. Registration is completed online with the FTA.
What matters for your business
The following points are decisive:
- VAT obligation and thresholds, registration is mandatory from AED 375,000 annual turnover, voluntary from AED 187,500
- VAT registration and refunds, correct registration with the FTA, optimisation of refunds
- Regular bookkeeping and reporting, monthly or quarterly VAT filings
- Filing of tax returns, timely and accurate submission
- goAML registration, anti money laundering compliance for certain sectors
The benefits of a dedicated accountant in Dubai
Experienced local professionals offer:
- An understanding of both tax systems, your home country and the UAE
- Advice you can actually follow, in clear language
- Support with incorporation
- Digital compliance solutions
Our services for you
We offer:
- Digital bookkeeping to IFRS standards
- VAT registration and refunds
- Annual financial statements and audit ready reports
- goAML registration and compliance
- Founder advisory for international entrepreneurs
Conclusion
VAT in Dubai is not an obstacle, it is a manageable part of running your business. With professional support you can focus on growth. Book an initial consultation.