In the context of the Value Added Tax (VAT) system in the United Arab Emirates (UAE), it is imperative to accurately record taxable transactions and maintain comprehensive records. One essential component of this process is the issuance of tax invoices. These invoices serve as a…
Within the framework of UAE VAT, whenever goods or services are supplied in a currency other than the UAE Dirham, they must be converted into UAE Dirhams. This is especially relevant for businesses involved in exporting goods or services and issuing invoices in a different…
The Profit Margin Scheme – Eligible Goods and Conditions The Profit Margin Scheme offers Taxable Persons the flexibility to calculate tax based on the profit margin generated from the sale of goods rather than the sale value. To apply VAT under the profit margin scheme,…
In the United Arab Emirates (UAE), VAT payment refers to the process of VAT-registered businesses remitting the tax they’ve collected to the government. Starting from January 1, 2018, UAE businesses registered for VAT are obligated to apply a 5% VAT on the taxable supply of…
The UAE introduced VAT on January 1, 2018, imposing a 5% VAT rate on the supply of goods and services within the country. Businesses registered under the UAE VAT system have the responsibility to apply a 5% VAT, collect it, and remit it to the…
Zero-rated supplies within the UAE VAT system pertain to taxable transactions subject to a 0% VAT rate. These transactions are either categorized as such based on the nature of the supply, irrespective of the specific goods or services involved, or they involve specified goods or…
Zero-rated supplies under UAE VAT entail taxable transactions on which VAT is levied at a zero rate. This zero tax rate can apply based on the nature of the supply, regardless of the specific goods or services involved, or for specified items listed under the…
The VAT Audit Process in the UAE A VAT audit in the UAE is an essential compliance check conducted to ensure the accuracy of an individual or entity’s VAT liability. This is achieved by meticulously scrutinizing various records maintained by the taxpayer. The tax audit…
Value Added Tax Registration Number (VAT Registration Number or VRN) In the United Arab Emirates (UAE) VAT system, individuals or businesses with a turnover exceeding AED 375,000 are obligated to undergo mandatory registration, while those with a turnover surpassing AED 187,500 have the option to…
To ascertain whether a business surpasses the mandatory or voluntary registration thresholds in the UAE, the following criteria should be taken into account: Taxable Supplies of Goods and Services: This encompasses all supplies of goods and services within the UAE that are subject to a…
