A: VAT is a tax on the transactions of goods and services, applied at each stage of the supply chain and is based on the value added at each stage.

A: The rate at which VAT is charged is 5% of the transaction cost is taxable under VAT.

A: VAT registration Companies that have an annual turnover above Dh375,000 have to register for VAT mandatorily. Companies that have a turnover under Dh375,000 but above Dh187,500 can voluntarily register for VAT. VAT applies equally on tax-registered businesses managed on the UAE mainland and in the free zones. However, if the UAE Cabinet defines a certain free zone as a ‘designated zone’, it must be treated as outside the UAE for tax purposes. The transfer of goods between designated zones are tax-free. Our VAT assistance service provides VAT registration Services Generating TRN number Annual VAT Filings Please get in touch with us for more information on what categories are exempted from VAT.