Who needs this service.
You're either over the AED 375,000 mandatory threshold or you're approaching it; either way, getting your VAT position right matters because penalties under FDL 8 are steep and refunds (when due) take months to pursue.
- You're registering for VAT and want to make sure the FTA accepts the application first time.
- You're filing quarterly VAT201 returns and want a second set of eyes before submission.
- You operate from or trade with a designated zone and need the classification right.
- You've under- or over-claimed input VAT and need to file a voluntary disclosure under Article 51 of the Tax Procedures Law.
- You're dealing with reverse charge on imports, intra-GCC supplies, or digital services.
What's included.
- Initial VAT registration with the FTA (or de-registration where appropriate)
- Monthly transaction review to keep the quarterly VAT return clean
- Quarterly VAT201 preparation, founder review, filing within statutory deadlines
- Reverse-charge logic applied per transaction class (imports, designated zone, digital services)
- Input-tax recovery rules including blocked input tax (entertainment, personal-use motor vehicles)
- Apportionment for partially-exempt businesses where applicable
- Voluntary disclosure filings for prior-period corrections
- FTA correspondence handling (reconsideration requests, audits, queries)
UAE VAT at a glance.
| Item | Rate / Threshold | Notes |
|---|---|---|
| Standard rate | 5% | On all taxable supplies of goods and services |
| Zero-rated | 0% | Exports, international transport, healthcare, education, residential property (first sale within 3 years) |
| Exempt | — | Some financial services, residential property (after first sale), local passenger transport |
| Mandatory registration | AED 375,000 | Annual taxable supplies — within 30 days of crossing |
| Voluntary registration | AED 187,500 | Annual taxable supplies or expenses |
| Return cadence | Quarterly (default) | Some large taxpayers required to file monthly |
| Late filing penalty | AED 1,000 / 2,000 | First offence / repeat within 24 months |
Source: Federal Decree-Law 8 of 2017 and amendments; Cabinet Decision 49 of 2021; FTA Public Clarifications.
Reverse charge — FDL 16 of 2025 changes.
From 1 January 2026, the scope of reverse-charge mechanism is expanded under Federal Decree-Law 16 of 2025. We've already updated our compliance pre-flight to flag any client transaction that falls under the new rules. If you trade in scrap metals, gold and diamonds wholesale, or precious metals, the new rules will affect you — we'll walk you through the documentation requirements.