VAT implementation across the United Arab Emirates on 1 January, 2018

Simplify your international development

  • Home
  • VAT implementation across the United Arab Emirates on 1 january, 2018
Demandez votre remboursement
de tva 2018 !
Date limite au 30 juin 2019/span>
Vous êtes une entreprise hors UE et vous avez effectué des
achats dans un État membre de l'UE !
Vous pouvez peut être en obtenir le rembrousement

VAT implementation across the United Arab Emirates on 1 january, 2018

Effective from 1 January, 2018, the United Arab Emirates (UAE) will start applying the value-added tax to most goods and services.

It is a big turning point for the country that has long lived without tax. Introduction of the VAT which will be fixed at 5 % rate, will allow the country to diversify its revenue streams and reduce its oil dependance.


The new law will concern first and foremost companies with a turnover superior to 375 000 AED. These enterprises will be obliged to register for VAT online. Furthermore, enterprises with a turnover situated between 187 000 AED and 375 000 AED will be able to apply for a voluntary registration. Finally, in order to enable start-ups with no turnover to register for VAT, companies whose expenses exceed the voluntary registration threshold (187 500 AED) may also register.


VAT will be applied to most goods and services at a standard rate of 5 %. Nevertheless, some sectors will benefit from a reduced tax rate of 0 %, for example, exports of goods and services to the countries outside of the Gulf Cooperation Council (GCC), international transportation, certain education and healthcare services and their relevant goods, certain investment grade precious metals, etc.* Besides, some categories of supplies will be exempt from VAT: some financial services, residential properties, bare land, and local passenger transport.


Each VAT registered business will receive a VAT number which will have to figure on all invoices. Invoices will also have to mention the value of supplies subject to VAT as well as the VAT rate. Each trimester, the company will have to submit a tax return. It must be submitted no later than on the 28th day after the end the tax period, and must contain specific mandatory information such as the value of the VAT charged, the value of recoverable VAT, the payable VAT for the tax period, etc.* In addition, registered for VAT or not, the company will need to keep records of its operations so that the authorities can audit its transactions and verify whether the company must register for VAT or not.

The VAT implementation will be a challenge for the businesses that will need to comply with the new system and new obligations. ASD Group has recently opened an office in Dubai in order to meet the growing demand of our clients in the Middle-East. Do not hesitate to contact us for any question regarding your development in the region.

* Non-exhaustive list

Subscribe to ASD Group's newsletter
and receive all our latest information and news.
Newsletter modal
Nos experts sont à votre disposition pour répondre à toutes vos questions.
Pakar kami siap membantu Anda untuk menjawab semua pertanyaan Anda.
Our experts are at your disposal to answer your questions.
Nuestros expertos están a su disposición para responder a todas sus preguntas. ¡Realice una consulta gratuita!
Os nossos especialistas estão à sua disposição para responder a todas as suas questões.
I nostri esperti sono a vostra disposizione per rispondere a tutte le tue domande. Approfitta di una consulenza gratuita !
Unsere Experten stehen Ihnen zur Verfügung um Ihnen alle Fragen zu beantworten.
Na váš dotaz obratem odpovíme. Využijte možnosti konzultace!
Nasi eksperci są do Twojej dyspozycji, aby odpowiedzieć na Twoje pytania.
Experții noștri sunt la dispoziția dumneavoastră pentru a vă răspunde la toate întrebările. Profitați de consultanța gratuită !
Onze deskundigen staan tot uw beschikking om al uw vragen te beantwoorden. Krijg gratis advies!
Нашите експерти са на разположение, за да отговорят на въпросите Ви. Възползвайте се от безплатна консултация!