Tax & VAT · UAE

VAT Services & Accounting in Dubai & the UAE

From returns and refunds to audits and full compliance support, Cressford Chartered Accountants manages the complete VAT lifecycle for businesses across Dubai and the UAE. Returns are filed on time, input VAT recovered correctly, and the books maintained to a standard that withstands any FTA inspection, for a fixed monthly fee, without the quarterly scramble.

✓ On-time FTA filing, every period
✓ VAT audit support
✓ Fixed monthly fees
Prefer to speak with us? Call +971 54 389 0111
Chartered Accountants · Dubai · UAE

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Thresholds

Who falls within the scope of UAE VAT?

VAT obligations are determined by taxable turnover, not profit:

Mandatory threshold, AED 375,000

Obligations apply where taxable supplies and imports exceeded AED 375,000 over the preceding twelve months, or are expected to do so within the next thirty days.

Voluntary threshold, AED 187,500

The voluntary threshold is reached once turnover or expenses pass AED 187,500, frequently worthwhile for the recovery of input VAT.

Free zone companies are included

Free zone status does not confer exemption. Where taxable supplies exceed the threshold, the same obligations apply.

The position is confirmed from actual figures before any step is taken.

Talk to our VAT team →
Rates

UAE VAT rates: 5%, 0% and exempt

The UAE standard VAT rate is 5%, but not all supplies are treated alike, and the distinction between zero-rated and exempt is material to input VAT recovery:

Category
Rate
Examples
Standard-rated
5%
Most goods and services
Zero-rated
0%
Exports, international transport, first sale of new residential property, certain healthcare and education
Exempt
No VAT
Certain financial services, bare land, local passenger transport, residential leases
The distinction is practical: zero-rated businesses can still recover input VAT; exempt businesses generally cannot. Supplies are classified correctly at the outset, a common source of costly error.
One team

The complete VAT lifecycle, one team

Start
VAT Health Check
Threshold checks, documentation and FTA portal submission, end to end.
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Ongoing
Return Filing & Compliance
Accurate periodic returns, reconciled to the books, filed before the deadline every period.
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Recover
VAT Refunds
Refund applications prepared, evidenced and defended through FTA queries.
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Exit
VAT for Closing Businesses
Final returns and clean VAT exits handled alongside company liquidation.
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Verify
TRN Check
Verification of any supplier's tax registration number before reliance is placed on its invoices.
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Ahead
E-Invoicing
Preparation for the UAE's e-invoicing rollout before it becomes mandatory.
Learn more →
Return filing

VAT return filing and deadlines

Within 28 days of the period end

The VAT return (Form VAT 201) and any payment are both due within 28 days of the end of each tax period, filed through the FTA's EmaraTax portal.

Monthly or quarterly

The FTA assigns the filing frequency. Most businesses file quarterly; those with turnover above AED 150 million file monthly.

Nil returns still count

A return must be filed for every period even where there was no activity. A late nil return carries the same penalty as any other.

Filing and payment are separate obligations

Submitting the return on time but paying late still attracts a penalty. Both are completed before the deadline.

Every return is reconciled to the books, entitled input VAT recovered, and filing completed early, so that a slow EmaraTax evening never becomes a fine.

Current for 2026

VAT penalties in 2026, and how they are kept at zero

The UAE overhauled VAT penalties under Cabinet Decision No. 129 of 2025, effective 14 April 2026. The current figures:

Violation
Penalty (from 14 April 2026)
Missing the VAT threshold deadline
AED 10,000 (fixed)
Late return filing
AED 1,000 first offence / AED 2,000 repeat within 24 months
Late payment
14% per annum, charged monthly on the unpaid balance
Incorrect return
AED 500
Failure to keep proper records
AED 10,000 first offence / AED 20,000 repeat

Two points are worth noting. The late-payment rule has changed: it is now a flat 14% per annum, replacing the former compounding structure of 2% plus 4% monthly plus 1% daily that could reach 300% of the tax. And unlike corporate tax, VAT carries no automatic penalty waiver, so punctual filing is the only genuine protection. Correcting an error through voluntary disclosure remains considerably less costly than an FTA-raised assessment.

Scope of service

Scope of our VAT service

VAT-compliant bookkeeping and a tax-ready chart of accounts
Correct classification of standard-rated, zero-rated and exempt supplies
Periodic VAT return preparation, reconciliation and punctual EmaraTax filing
Input VAT recovery, correctly evidenced and claimed in full
VAT health checks and support during FTA audits and queries
Voluntary disclosures correcting past errors before they become assessments
Refunds and full lifecycle support via our dedicated VAT services
Why Cressford Chartered Accountants

Why companies appoint Cressford Chartered Accountants for VAT

A managed calendar, not a quarterly scramble

Filing deadlines are built into a managed compliance calendar, so returns are prepared and filed early, every period, without the client chasing.

Audit and tax within one firm

Because the firm also audits, VAT returns reconcile to the accounts, removing the inconsistencies that trigger FTA queries.

Fixed monthly fees, senior-led

A predictable monthly fee agreed in advance, with senior professionals on the file throughout.

Dubai-based

Office 2514, DAMAC Smart Heights, Barsha Heights (Tecom), Dubai. Engagements conducted in person or fully remotely.

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FAQ

VAT questions, answered

When must a business register for VAT in the UAE?

The mandatory threshold is AED 375,000 of taxable supplies and imports over the preceding twelve months, or expected within the next thirty days. The voluntary threshold is AED 187,500. Free zone companies are subject to the same thresholds.

What is the UAE VAT rate?

The standard rate is 5%. Certain supplies are zero-rated, including exports and international transport, and others are exempt, including certain financial services and residential leases. The classification determines input VAT recovery.

How often are VAT returns filed, and when are they due?

The FTA assigns a monthly or quarterly frequency; most businesses file quarterly, and those with turnover above AED 150 million file monthly. The return and any payment are due within 28 days of the period end.

What are the penalties for late VAT filing or payment?

Under Cabinet Decision No. 129 of 2025, effective 14 April 2026: AED 1,000 for a first late return (AED 2,000 for a repeat within 24 months), late payment at 14% per annum charged monthly, and AED 10,000 where the threshold deadline is missed.

Do free zone companies pay VAT?

Free zone status does not exempt a company from VAT. Where taxable supplies exceed the threshold, the same filing obligations apply, with specific rules for designated zones.

Do you also handle VAT refunds and the full lifecycle?

Yes. The complete lifecycle is managed by one team: periodic filing, refund support, e-invoicing readiness and clean exits.

What VAT records must be kept?

Tax invoices, credit notes, import and export records, and the accounting records supporting each return, retained for at least five years. Proper record-keeping failures attract penalties of AED 10,000, rising to AED 20,000 for repeat offences.

VAT handled, penalties avoided

The complete VAT lifecycle managed by one team, at a fixed fee agreed in advance.