VAT services for businesses in Dubai
UAE VAT is charged at 5% and most businesses must register once their taxable supplies pass AED 375,000 a year. We help Dubai SMEs register, file correct returns every period, and fix past errors before they become penalties. You get one team for the whole VAT cycle, from your first TRN to deregistration.
Who needs this
- Businesses whose taxable supplies or imports passed AED 375,000 in the last 12 months, or will in the next 30 days
- Start-ups above AED 187,500 in supplies or expenses that want to register voluntarily and recover input VAT
- VAT-registered companies that want an accountant to prepare and submit every return
- Businesses that have found errors in returns already filed and need to correct them
- Companies with a VAT credit balance that want to claim it back before the time limit runs out
- Owners closing or scaling down a business who need to cancel their TRN
What's included
- Threshold check to confirm whether you must register, may register, or do not need to
- VAT registration prepared and submitted through your EmaraTax account
- Quarterly or monthly VAT return preparation, review and submission
- Input VAT review so you only recover what the law allows
- VAT health check covering invoices, records and past returns
- Voluntary disclosures to correct errors in filed returns
- Refund claims for excess input tax, with supporting schedules
- Reconsideration requests prepared if you disagree with an FTA penalty or decision
- VAT deregistration when your business no longer needs a TRN
Documents we'll ask for
- Trade licence and memorandum of association
- Sales and purchase invoices for the period
- Bank statements for all business accounts
- Customs import and export declarations, if you trade goods
- Previously filed VAT returns, if you are already registered
- Access to your EmaraTax account, or permission to set one up
How it works
- Step 1
Review your VAT position
We look at your turnover, the kind of supplies you make and any past filings. Then we tell you which VAT services you need and which you can skip.
- Step 2
Agree scope and a fixed fee
You get a written quote based on your transaction volume and the work involved. Nothing starts until you approve it.
- Step 3
Collect records and prepare the filing
We request the invoices, statements and customs records we need, reconcile them to your books and prepare the registration, return or disclosure.
- Step 4
Submit through EmaraTax
After you approve the draft, we submit it through your EmaraTax account and send you the FTA acknowledgement and any payment details.
- Step 5
Stay on schedule
We track your tax periods and send reminders before each deadline, so the next return starts on time.
How VAT works in the UAE
VAT in the UAE is a 5% tax on most goods and services. When you are registered, you charge VAT on your sales (output tax) and recover the VAT you pay on business costs (input tax). Each return shows the difference. If output tax is higher, you pay the FTA. If input tax is higher, you carry a credit or claim a refund.
Not every supply is taxed at 5%. Some supplies, such as most exports of goods and services, are zero-rated, which means VAT is charged at 0% but you can still recover input tax. Others, such as the lease of residential property and some financial services, are exempt, which means no VAT is charged and the related input tax usually cannot be recovered. Getting this classification right is the basis of a correct return.
Most SMEs file quarterly. Returns and payment are due by the 28th day after the end of each tax period. A quarter that ends on 30 September, for example, must be filed and paid by 28 October.
Good VAT compliance starts in the books, not in the return. If sales and purchases are recorded with the right VAT treatment as they happen, the quarterly return is mostly a check. If they are not, every return becomes a clean-up exercise, and that is where errors creep in.
Which VAT service do you need?
If you are not yet registered, start with VAT registration. We check whether you are above the mandatory threshold of AED 375,000 or the voluntary threshold of AED 187,500, and then prepare and submit your application through EmaraTax. Our registration fee is AED 250 one-off (excl. VAT).
If you already have a TRN, VAT return filing is the core recurring service. We reconcile your sales and purchases each period, check that your invoices support the figures, and submit the return before the deadline. Pricing starts from AED 250 per quarter (excl. VAT) for up to 50 transactions and is set by your transaction band. If you also take our Accounting & Bookkeeping and corporate tax services, a 10% bundle saving applies to the recurring fees.
If you are closing a business or your taxable supplies have dropped below AED 187,500, you may need VAT deregistration. You must apply within 20 business days of becoming eligible, and a fixed penalty applies if you apply late. Our deregistration fee is AED 500 one-off (excl. VAT).
Health checks, refunds and voluntary disclosures
A VAT health check is a review of your past returns, invoices and records against the law. It is useful before an FTA audit, after a change of accountant, or when you suspect something has been filed incorrectly. You get a written list of issues, the tax effect of each one, and what we recommend you do about it.
If a filed return understated the tax due by more than AED 10,000, it must be corrected through a voluntary disclosure rather than in the next return. From 14 April 2026, the penalty for errors corrected by voluntary disclosure dropped to around 1% per month of the tax difference. Coming forward early costs less than waiting for the FTA to find the error.
From 1 January 2026, a 5-year limit applies to claiming refunds of excess input tax and credit balances. Balances older than that can still be claimed until 31 December 2026. If your business has carried a credit for a long time, now is the time to review it.
What changed for VAT in 2026
Revised VAT and excise penalties apply from 14 April 2026 under Cabinet Decision No. 129 of 2025. Late payment is now charged at 14% per year, calculated monthly, replacing the old 2% plus 4% monthly regime. Some fixed penalties also changed, so check the FTA penalty table for your specific case.
From 1 January 2026, you no longer need to issue a self-invoice when you account for VAT under the reverse charge. The FTA's audit window can now extend up to 15 years in cases of tax evasion or failure to register.
E-invoicing is coming next. Per current MoF guidance, businesses with revenue of AED 50 million or more had to appoint an Accredited Service Provider by 30 October 2026 and go live on 1 January 2027. Smaller businesses must appoint a provider by 31 March 2027 and go live on 1 July 2027. Check for updates, as dates can change.
Penalties and risks to avoid
Late VAT registration
The penalty for failing to register on time is AED 10,000. VAT may also be assessed on sales made from the date you should have registered.
Late payment of VAT
From 14 April 2026, late payment is charged at 14% per year, calculated monthly, under Cabinet Decision No. 129 of 2025.
Errors in filed returns
Errors corrected by voluntary disclosure attract a penalty of around 1% per month of the tax difference from 14 April 2026. Check the FTA penalty table for your case.
Old refund claims
A 5-year limit now applies to reclaiming excess input tax. Older balances can only be claimed until 31 December 2026.
Questions about VAT services
What is the VAT registration threshold in the UAE?
You must register when your taxable supplies and imports exceed AED 375,000 over the past 12 months, or are expected to in the next 30 days. You can register voluntarily if your supplies or expenses exceed AED 187,500.
How often do I need to file a VAT return in the UAE?
Most businesses file quarterly, and some file monthly. The return and payment are due by the 28th day after the end of each tax period.
What happens if I pay my VAT late?
From 14 April 2026, late payment is charged at 14% per year, calculated monthly. A fixed penalty also applies for filing a return late. Check the FTA penalty table for the amounts in your case.
Can I claim back VAT I paid on business expenses?
Yes, if you are VAT registered, the expense is for your taxable business and you hold a valid tax invoice. Some costs are blocked, such as most entertainment for people who are not employees and cars available for personal use.
How long do I have to claim a VAT refund?
From 1 January 2026, a 5-year limit applies to claiming excess input tax and credit balances. Balances older than 5 years can still be claimed until 31 December 2026.
How long must I keep VAT records?
The general VAT rule is 5 years, and real estate records must be kept for 15 years. Because corporate tax requires 7 years, we recommend keeping all accounting and tax records for at least 7 years.
Related services
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