The United Arab Emirates (UAE) has implemented a Corporate Tax (CT) regime to diversify its economy and align with international tax standards. Understanding the CT framework is crucial for business operating within the UAE to ensure compliance and optimize tax planning.
What is VAT and who needs to Register?
VAT is a 5% tax imposed on most goods and services in the UAE. Businesses meeting certain turnover thresholds must register and comply with VAT regulations.
Mandatory VAT Registration:
Businesses with annual taxable turnover above AED 375,000
Companies engaged in the import/export of goods & services
E-Commerce businesses and freelancers crossing the VAT threshold
Voluntary Registration:
Businesses with turnover above AED 1875,000 but below AED 375,000 can opt to register for VAT
Helps businesses claims input tax credit and establish credibility
VAT Exempt Businesses:
Some financial services, local transport, residential real estate transactions may be exempt.
Our UAE VAT Services
At Dawley, we provide end-to-end VAT solutions to ensure your business tax-compliant and penalty free