Introduction
Value Added Tax (VAT) was introduced in the UAE in 2018, impacting almost every business operating within the country. While the system is straightforward in theory, many companies struggle with proper registration, filing, and compliance. At NYSA Management Consultancy, we help businesses navigate the VAT landscape with clarity and confidence.
What is VAT?
VAT is a consumption tax levied on goods and services at each stage of the supply chain. In the UAE, the standard rate is 5%, and it applies to most business transactions.
Who Needs to Register for VAT?
Any business with a taxable turnover of over AED 375,000 per annum is mandatorily required to register. Businesses with revenue between AED 187,500 and AED 375,000 can voluntarily register.
Key Steps in VAT Registration:
- Gathering necessary documents (trade license, Emirates ID, bank details, etc.)
- Applying through the Federal Tax Authority (FTA) portal
- Receiving your VAT Certificate and TRN (Tax Registration Number)
Filing VAT Returns
Registered businesses must file their VAT returns quarterly (or monthly in some cases). This includes:
- Reporting total sales and purchases
- Declaring output and input VAT
- Paying any net VAT due to the government
Why Compliance Matters
Failure to comply can result in:
- Heavy fines
- License suspension
- Legal consequences
Conclusion
Staying VAT-compliant is not just about avoiding penalties—it also builds business credibility. Let NYSA handle your VAT registration and returns while you focus on growing your business.