Understanding VAT Compliance in the UAE

Since 2018 the UAE has enforced VAT at 5% for most goods and services. Proper VAT management prevents fines and keeps your operations audit-ready.

Core requirements

• Register for VAT if you exceed the mandatory registration threshold.
• Issue tax-compliant invoices for every taxable sale.
• Maintain records (invoices, contracts, import/export docs) for a minimum period (commonly 5 years).

Filing & deadlines

VAT returns are typically filed quarterly. Reconcile input tax vs output tax before submission.

Common mistakes to avoid

• Missing filing deadlines
• Incorrectly applying VAT to mixed supplies
• Poor record keeping

Practical steps

1. Use reliable accounting software with VAT features.
2. Train staff responsible for invoicing.
3. Schedule quarterly VAT audits (internal) to catch errors early.