VAT (Value Added Tax)

Businesses that have import and export goods on or above AED 3,75,000 are meant to mandatorily register for VAT. The business that trade goods on or below AED 1,87,500 have an option of registering their business for VAT. The business has to pay the government, the tax that it collects from its customers. At the same time, it receives a refund from the government on tax that it has paid to its suppliers. 

Businesses that are VAT registered collect VAT taxes from the customers on behalf of the government on any taxable goods and services at the rate of 5%. UAE government applies VAT on tax-registered businesses at a rate of 5% on a taxable supply of goods or services at each step of the supply chain. The Tourist that visits UAE also pays VAT on any sale that they commence.

The VAT is applied to every tax-registered businesses that are established in UAE mainland as well as freezone. If the UAE Cabinet defines a certain freezone as a designated zone it must be treated as outside the UAE for tax purposes. The transfer of goods between designated zones is tax-free.

Many-a-times, VAT payment is delayed or are due. This may cause a huge penalty amount. But with the help of Quicksetup.ae, you can resolve your VAT penalty issue within no time. With the help of our VAT experts, we can reach to various VAT departments to lower your penalty fees as much as possible, sometimes it can be waved off as well.