VAT Services in UAE | Registration, Filing & Compliance by MSZ

VAT Services in the UAE

Value Added Tax (VAT) is an indirect tax imposed on the consumption of goods & services at different stages of the supply chain. Introduced in the UAE on 1st Jan’18, at a standard rate of 5%, VAT is borne by the consumer, while businesses collect & remit it to the government.

Why VAT Matters?

VAT plays a crucial role in UAE’s revenue sources beyond oil. It ensures financial transparency and helps with public services funding. Businesses must adapt their models to comply with VAT regulations to curb penalties to ensure smooth operations.

VAT Registration & Eligibility

VAT registration is required for businesses with taxable supplies exceeding AED 375K annually. Voluntary registration is allowed for those exceeding AED 187.5K. Registration is done online on the FTA portal.

VAT Services Offered by MSZ

MSZ provides a full suite of VAT services across the UAE, including:

VAT registration & deregistration
VAT return filing
VAT accounting & bookkeeping
VAT compliance checks
Tax planning & advisory
VAT audit support
Invoice & documentation

VAT Filing and Compliance

VAT-registered businesses need to file returns monthly or quarterly, depending on their annual turnover. MSZ ensures timely filing of Form 201 on the FTA portal, helping you report your input & output tax timely and accurately.

VAT Categories: Zero-Rated vs. Exempt

Zero-rated supplies (0% VAT) include exports and certain educational services- input tax can be reclaimed.

Exempt supplies include financial services, residential buildings, and local passenger transport- input tax cannot be claimed.

Benefits of VAT Services

VAT Services at MSZ:

Accurate tax calculations
Minimal compliance risks
Recovery of eligible input tax
Protection from fines & penalties
Improved financial reporting
Expert guidance on VAT changes

VAT Accounting & Record-Keeping

Maintaining correct & complete financial records is necessary under the VAT law in UAE. MSZ helps businesses organize transactions, sales, and buy data to ensure full compliance.

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How MSZ Supports Businesses with VAT in the UAE

VAT compliance in the UAE can be complex, from registration and filing to bookkeeping and audits. MSZ helps businesses navigate every step, ensuring accurate registration, timely return filing, and full adherence to FTA rules. We guide both mandatory and voluntary registrants on thresholds, zero-rated and exempt supplies, and proper VAT accounting.

Our services cover the full VAT cycle: deregistration, compliance checks, tax planning, invoice management, and audit support. We help organize records, reconcile taxes, reduce compliance risks, and maximize input tax recovery, all tailored to your business and industry.

With MSZ Consultancy, you can focus on running your business while we handle VAT obligations efficiently. From registration to audits and penalties, our team provides the expertise and support to keep your business compliant and confident.

Get a call back now to learn more about VAT in the UAE!

Frequently Asked Questions (FAQs)

Do you have a question about starting a company in the UAE? We've answered some of the most frequently asked questions about what you can expect:

So what actually is VAT?

It's that extra 5% your customers see on their bill. You just collect it and send it to the government.

When does registering become mandatory?

The moment your annual sales cross AED 375,000, you've got to do it.

Why would I register if my sales are lower?

To get money back! If your turnover is over AED 187,500, registering means you can reclaim the VAT you pay on your own purchases.

Can you explain zero-rated vs exempt in plain English?

Sure. Zero-rated is a true 0% - you don't charge your customer VAT, but you can still claim back the VAT you paid. With exempt supplies, you don't charge VAT and you can't claim anything back. It often costs you more.

How often am I stuck doing VAT returns?

Most businesses file every three months. If you're really big, it might be monthly.

What's the real cost of filing late?

They'll fine you AED 1,000 straight away. Do it again, and it doubles to AED 2,000.

What records am I supposed to keep?

Basically every invoice you send and receive, plus your bank statements and financial records. You need to hold onto them all for five years.

What's the real reason to hire MSZ?

So you can focus on your work, not tax paperwork. We handle the whole headache- registration, filing, and facing the FTA if an audit comes knocking.