How does VAT affect business setup in Dubai?
Key Takeaways:
- The UAE introduced Value Added Tax (VAT) in January 2018, with a standard rate of 5% on most goods and services.
- VAT registration is mandatory for businesses with taxable supplies and imports exceeding AED 375,000 annually. Voluntary registration is possible from AED 187,500.
- Proper record-keeping, issuance of tax invoices, and timely filing of VAT returns are crucial compliance requirements for any Business setup in Dubai.
- Free zones have specific VAT treatments, with “Designated Zones” offering unique rules for goods, which can impact supply chains.
- Failing to comply with VAT regulations can result in significant penalties from the Federal Tax Authority (FTA).
The introduction of Value Added Tax (VAT) in the UAE in January 2018 marked a significant shift in the country’s tax landscape, moving it towards a more diversified revenue model. For anyone undertaking a Business setup in Dubai, understanding how VAT affects their operations … Read the rest >>>>