VAT Services

VAT should support your business operations, not create avoidable compliance problems.

From registration and return filing to invoice reviews, input VAT recovery, refunds, and audit preparation, our VAT services in the UAE help businesses manage their VAT responsibilities with greater accuracy and control.

At Eighty20 Business and Financial Solutions, we support businesses with VAT registration, return preparation, VAT reconciliations, refund applications, deregistration, transaction reviews and ongoing VAT compliance.

Our approach is practical: we first understand how your business operates, then structure the VAT process around your transactions, accounting systems and Federal Tax Authority requirements.

What Is VAT in the UAE?

Value Added Tax, or VAT, is a consumption tax charged at different stages of the supply chain.

The standard VAT rate in the UAE is 5%. Certain supplies may be zero-rated, while others may be exempt depending on the conditions set out in UAE VAT legislation.

For a VAT-registered business, VAT generally involves two key amounts:

• Output VAT: VAT charged on taxable sales
• Input VAT: VAT incurred on eligible business purchases and expenses

The amount payable to or recoverable from the Federal Tax Authority depends on the business’s transactions and the applicable VAT recovery rules.

Who Needs to Register for VAT in the UAE?

VAT registration depends mainly on the value of taxable supplies and imports.

A UAE-resident business generally must register for VAT where the value of taxable supplies and imports:

• Exceeds AED 375,000 during the previous 12 months, or
• Is expected to exceed AED 375,000 during the next 30 days

A UAE-resident business that does not meet the mandatory threshold may generally apply for voluntary VAT registration where taxable supplies, imports or qualifying taxable expenses exceed AED 187,500 during the relevant period.

Different rules can apply to non-resident businesses making taxable supplies in the UAE.

Mandatory VAT Registration vs Voluntary VAT Registration

Understanding the difference is important because one is a legal obligation while the other is an option available to eligible businesses.

Area	Mandatory VAT Registration	Voluntary VAT Registration
Registration status	Required when the applicable threshold is met	Optional where eligibility conditions are met
Threshold	AED 375,000	AED 187,500
Main test	Taxable supplies and imports	Taxable supplies, imports or qualifying taxable expenses
Previous period test	Previous 12 months	Previous 12 months
Forward-looking test	Expected to exceed threshold in next 30 days	Expected to exceed threshold in next 30 days
Can business choose not to register?	No, if mandatory conditions are met	Yes
Why businesses register	To meet a legal VAT obligation	Often to recover eligible input VAT and establish VAT processes earlier
Suitable for	Businesses above the mandatory threshold	Eligible growing businesses below the mandatory threshold
VAT return obligation after registration	Yes	Yes
FTA compliance obligations after registration	Applicable	Applicable

The registration thresholds above reflect the current Federal Tax Authority rules.

Our VAT Services in UAE

VAT Registration UAE

Businesses searching for VAT registration services near me should look for support that assesses the actual registration position before an application is submitted. VAT registration should be based on taxable activities, turnover, expected revenue and the applicable FTA rules rather than assumptions.

Our support can include:

• Reviewing taxable turnover
• Assessing expected revenue
• Reviewing taxable expenses for voluntary registration
• Identifying the appropriate registration basis
• Preparing registration information
• Supporting the EmaraTax application
• Reviewing supporting documentation
• Responding to information requests relating to the application

VAT registration should be based on the actual activities and taxable turnover of the business rather than assumptions.

VAT Return Filing UAE

VAT returns and related VAT payments are generally due within 28 days after the end of the relevant tax period. Businesses should monitor the VAT filing deadline UAE penalty risk carefully by ensuring returns and payments are completed within the applicable statutory timeframe.

Our VAT return filing UAE service can include:

• Reviewing sales transactions
• Reviewing purchase transactions
• Checking output VAT
• Reviewing input VAT
• Reconciling VAT accounts
• Identifying unusual transactions
• Preparing VAT return calculations
• Supporting return submission
• Preparing supporting schedules

The objective is not simply to submit a return, but to ensure the amounts being reported can be supported by the underlying accounting records.

VAT Reconciliation

VAT returns should agree with accounting records.

We help businesses reconcile:

• Revenue with VAT returns
• Output VAT ledgers
• Input VAT ledgers
• Import transactions
• Reverse-charge transactions
• Credit notes
• Adjustments
• VAT control accounts

Regular VAT reconciliation can identify errors before they accumulate across several tax periods.

VAT Refund Services

A VAT-registered business may be in a refundable position where recoverable input VAT exceeds output VAT, subject to the applicable VAT recovery rules.

The Federal Tax Authority allows eligible taxable persons to submit VAT refund requests through EmaraTax.

Our VAT refund support can include:

• Reviewing the refundable VAT balance
• Checking input VAT documentation
• Reviewing tax invoices
• Preparing supporting schedules
• Identifying unsupported VAT claims
• Preparing refund application information
• Assisting with FTA information requests

A VAT credit does not automatically mean that every amount is refundable. Eligibility depends on the nature of the underlying expenses and the applicable UAE VAT rules.

VAT Health Check

A VAT health check is a structured review of the company’s VAT processes and records.

We may examine:

• VAT registration status
• Tax invoices
• VAT return calculations
• Input VAT recovery
• Output VAT
• Reverse-charge treatment
• Imports
• Exports
• Credit notes
• Adjustments
• VAT reconciliations
• Record keeping
• VAT classifications

The purpose is to identify potential compliance issues before they are discovered during an FTA review or tax audit.

VAT Audit Support

If a business is subject to an FTA review or audit, clear and organised records are essential. Our FTA VAT services can support the review of information requests, VAT reconciliations, transaction schedules, historical VAT treatment and relevant supporting documentation.

Our support may include:

• Reviewing the information request
• Organising VAT records
• Reconciling submitted returns
• Preparing transaction schedules
• Identifying differences
• Supporting responses to factual accounting queries
• Reviewing historical VAT treatment

The exact scope depends on the nature of the FTA request and the issues being reviewed.

Tax Invoice Review

VAT invoices need to contain the information required under UAE VAT rules.

We review invoice structures to help identify missing or incorrect information and assess whether accounting and ERP systems are producing VAT documentation consistently.

The review can cover:

• Supplier details
• Customer information where required
• Tax Registration Number
• Invoice date
• Supply information
• VAT rate
• VAT amount
• Currency treatment
• Credit notes
• Simplified or full tax invoice requirements where applicable

Input VAT Recovery Review

Not all VAT paid by a business is automatically recoverable.

We review whether input VAT claims appear to meet the conditions for recovery and whether supporting tax invoices and records are available.

Common review areas include:

• General operating costs
• Motor vehicle costs
• Entertainment expenses
• Mixed-use expenditure
• Imports
• Employee-related expenses
• Capital expenditure
• Exempt and taxable activities

Where an expense relates to both taxable and exempt activities, input VAT recovery may require an appropriate apportionment method.

Reverse-Charge Mechanism Review

Certain imports of goods or services can create reverse-charge VAT obligations.

We review whether relevant transactions have been correctly identified and accounted for within the VAT return and accounting system.

VAT Deregistration UAE

VAT deregistration may become relevant where a business:

• Stops making taxable supplies
• Ceases business activity
• Falls below the relevant registration criteria
• No longer meets the conditions under which registration should continue

The FTA provides a formal VAT deregistration process through EmaraTax. Where deregistration is mandatory, the application generally must be submitted within 20 business days from the date the obligation to deregister begins.

Our support can include reviewing the deregistration position, preparing turnover information and organising the supporting records required for the application.

What Is the Difference Between Zero-Rated and Exempt VAT?

This is an important distinction in UAE VAT.

Treatment	Zero-Rated Supply	Exempt Supply
VAT rate charged	0%	No VAT charged
Treated as taxable supply	Yes	No
Input VAT recovery	Generally available subject to normal recovery conditions	Generally restricted for costs related to exempt supplies
Examples may include	Certain exports, qualifying healthcare, education and other specified supplies	Certain financial services, residential property, bare land and local passenger transport
Registration impact	Can count as taxable supplies	Generally treated differently from taxable supplies

The exact VAT treatment depends on the conditions in UAE VAT legislation.

How Our VAT Process Works

Businesses looking to hire a VAT agent in the UAE should ensure the provider first understands how the company earns revenue, purchases goods and services, invoices customers, and records transactions before preparing VAT calculations or returns.

Step 1: Understand Your Business

We review how the company earns revenue, purchases goods and services, invoices customers, and records transactions.

This helps identify:

• Taxable activities
• Zero-rated activities
• Exempt activities
• Imports
• Exports
• Related-party transactions
• Cross-border transactions
• Potential reverse-charge obligations

Step 2: Review the VAT Position

We assess the company’s current VAT status.

This may include:

• Registration requirements
• VAT classifications
• Tax-period obligations
• Input VAT recovery
• Output VAT
• Existing VAT errors
• Historical returns

Step 3: Review Systems and Invoices

VAT compliance depends heavily on accounting and invoicing systems.

We review whether VAT codes, tax invoices, and transaction records are being generated consistently.

Step 4: Prepare and Reconcile VAT Data

VAT information is reconciled with the accounting records before the return is finalised.

This helps reduce discrepancies between:

• Sales ledgers
• Purchase ledgers
• General ledger
• VAT control accounts
• VAT returns

Step 5: Prepare the VAT Return

The return is prepared using the reconciled transaction data and supporting information.

Step 6: Review Before Filing

Significant or unusual transactions are checked before submission.

Step 7: Support Ongoing Compliance

VAT should be managed continuously rather than reviewed only when the filing deadline arrives.

Ongoing support can include:

• Periodic VAT reconciliations
• Transaction reviews
• Invoice checks
• VAT treatment queries
• Refund support
• Deregistration support
• FTA correspondence support

What Records Should UAE Businesses Maintain for VAT?

VAT compliance depends on reliable documentation.

Relevant records may include:

• Sales invoices
• Purchase invoices
• Tax credit notes
• Debit notes
• Import documentation
• Export documentation
• Customs records
• Bank records
• General ledgers
• VAT control accounts
• Contracts
• Supporting transaction documents
• VAT returns
• VAT calculations

Records should be maintained in a way that allows the FTA to verify the information used to prepare tax returns.

Certain records relating to real estate are subject to a longer retention period, with the FTA guidance specifying 15 years for relevant real-estate records.

Is Your VAT and Invoicing System Ready for UAE eInvoicing?

This is now an important 2026 consideration.

The UAE Electronic Invoicing System pilot commenced on 1 July 2026. Businesses may also voluntarily implement the system from that date, subject to the technical requirements.

The new system is different from simply emailing a PDF invoice.

The Ministry of Finance defines an eInvoice as structured invoice data that is electronically issued, exchanged and reported. PDF files, Word documents, scanned invoices and ordinary email attachments are not, by themselves, UAE eInvoices.

Current UAE eInvoicing Rollout

Business Category	Current Requirement
Revenue of AED 50 million or more	Appoint an Accredited Service Provider by 30 October 2026 and implement eInvoicing from 1 January 2027
Revenue below AED 50 million	Appoint an Accredited Service Provider by 31 March 2027 and implement eInvoicing from 1 July 2027
Government entities in scope	Implement from 1 October 2027 under the applicable timetable
Voluntary implementation	Available from 1 July 2026

The original deadline for businesses above AED 50 million to appoint an Accredited Service Provider was extended from 31 July 2026 to 30 October 2026.

Businesses should therefore begin reviewing:

• ERP and accounting systems
• Customer master data
• Supplier master data
• Invoice fields
• Tax codes
• VAT classifications
• System integration capability
• Accredited Service Provider requirements

Why Is VAT Compliance More Than Filing a Return?

A VAT return is only the final output of a much larger process. Effective VAT compliance services in the UAE should connect accounting records, tax invoices, transaction classifications, reconciliations, and VAT returns rather than treating filing as a standalone task.

Errors usually begin earlier, for example:

• Incorrect invoice setup
• Wrong tax codes
• Missing input VAT documentation
• Incorrect zero-rating
• Exempt transactions treated as taxable
• Reverse-charge transactions omitted
• Import VAT not reconciled
• Duplicate VAT claims
• Incorrect credit notes

That is why effective VAT compliance in the UAE should connect the accounting system, invoices, tax treatment, and VAT return rather than treating filing as a standalone task.

Common VAT Risks for UAE Businesses

Late VAT Registration

Businesses that cross the mandatory registration threshold need to identify the obligation promptly and follow the applicable registration requirements.

Incorrect Input VAT Claims

Recovering VAT without satisfying the relevant recovery conditions can create exposure during an FTA review.

Incorrect VAT Classification

Applying 0%, 5% or exempt treatment incorrectly can affect both invoices and VAT returns.

Unreconciled VAT Accounts

Differences between the accounting ledger and VAT returns can make later reviews more difficult.

Incorrect Cross-Border VAT Treatment

Imports, exports, and international services may require additional VAT analysis.

Poor Documentation

Even where the underlying VAT treatment is correct, inadequate supporting records can create compliance problems.

Why Use VAT Consultants in UAE?

A VAT consultant should do more than calculate a figure before the deadline. Businesses working with VAT consultants in Dubai should receive support in understanding transaction classifications, input VAT recovery, documentation requirements, VAT reconciliations, and potential compliance risks.

The VAT consultant cost in the UAE can vary depending on the scope of work, transaction volume, complexity of VAT treatments, number of tax periods involved, and whether the business requires registration, filing, health checks, refunds or ongoing compliance support.

Professional VAT support should help a business understand:

• Why VAT applies
• How transactions should be classified
• Which VAT can potentially be recovered
• Which documents are required
• How returns connect with the accounts
• Where potential VAT risks exist
• What needs to change when UAE rules are updated

Our approach is to make VAT information understandable while keeping the technical treatment aligned with the business’s actual transactions.

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