Value Added Tax (VAT) is an indirect tax on the consumption of goods and services. It is a multi-stage tax applied throughout the supply chain and collected by businesses on behalf of the government. The VAT cost is ultimately borne by the end consumer.

Why is VAT implemented in the UAE?

VAT is implemented in the UAE to diversify revenue sources and reduce dependency on oil-based income. It helps the government fund better public services and infrastructure by generating revenue through taxation.

How will VAT affect your business?

VAT affects businesses financially, operationally, and from a compliance perspective. Financially, it may influence pricing, working capital, and cash flow. Operationally, contracts and IT systems must be adapted. From a compliance standpoint, businesses must register for VAT, file returns, and maintain readiness for FTA audits to avoid penalties.

UAE VAT Services for UK Businesses

VAT Registration in UAE Services

The United Arab Emirates Government introduced Value Added Tax (VAT) on 1st January 2018 with a standard rate of 5% on all goods and services in the country. Businesses in UAE, including those managed by UK entrepreneurs or investors, can benefit from VAT registration to recover certain costs related to this tax.

We get many queries related to VAT. Below are some of the most common questions we get from our clients based in the UK and abroad.

VAT is an indirect tax on goods and services, similar to consumption tax in many countries. It is a comprehensive, multi-stage consumption tax that applies throughout the supply chain and is collected by registered businesses on behalf of the government. Ultimately, the burden falls on the consumer, who is the end user and not on the businesses themselves.

Flyingcolour® assists in all types of company registrations in the United Arab Emirates. We assist UK investors in setting up in Mainland, Free Zones, or Offshore registrations across all Emirates of UAE. We also help in opening bank accounts with all local leading banks. We work closely with all Government Departments and banks to make the business setup process smooth for our UK clients.

VAT Services

World Class Business Services For Companies And Individual’s Across UAE

VAT Registration in UAE Services

Frequently Asked Questions