What is Input Tax and Output Tax in UAE VAT? Full Guide (2025)
What Is Output Tax? Output tax is the VAT a business charges to its customers on the sale of goods or services. It is collected on behalf of the Federal Tax Authority (FTA). 🔹 Example: You sell a product for AED 10,000 Output VAT at 5% = AED 500 Invoice total = AED 10,500 This […]
Filing VAT Returns in the UAE: Monthly vs Quarterly – Which One Applies to You?
What is VAT Return Filing? A VAT Return is an official summary submitted to the Federal Tax Authority (FTA) that reports: Total sales and purchases VAT collected (output VAT) VAT paid on expenses (input VAT) VAT due or refundable It’s a mandatory filing for all VAT-registered businesses in the UAE, either monthly or quarterly, depending […]
How to File VAT Returns in UAE: Complete Step-by-Step Guide (2025)
What Is a VAT Return? A VAT return is an official document submitted to the Federal Tax Authority (FTA) summarizing: Total sales and purchases Output VAT collected on sales Input VAT paid on expenses VAT payable or refundable All VAT-registered businesses in the UAE must file their returns monthly or quarterly, depending on their FTA-assigned […]
UAE VAT Threshold 2025 – Mandatory & Voluntary Registration Guide
What Is the VAT Threshold in UAE? In the UAE, VAT registration thresholds determine whether a business is required—or allowed—to register with the Federal Tax Authority (FTA) for VAT purposes. As of 2025, the UAE VAT system includes: A Mandatory Registration Threshold of AED 375,000 A Voluntary Registration Threshold of AED 187,500 Mandatory VAT […]
Difference Between VAT Exempt and Zero-Rated in UAE – Complete 2025 Guide
Why Is This Difference Important? Understanding the difference between zero-rated and exempt supplies is essential because it affects: What is Zero-Rated VAT? A zero-rated supply is: You must register for VAT and file returns if you only make zero-rated supplies and exceed the AED 375,000 threshold. Examples of zero-rated supplies in UAE: What is VAT Exempt? An exempt supply is: […]
Who is Exempt from VAT in the UAE? Complete Guide for 2025
What Does “VAT Exempt” Mean? In UAE VAT law, VAT exempt means a good or service is not subject to VAT and no VAT is charged on its supply. Unlike zero-rated supplies, you cannot recover input VAT on expenses related to exempt activities. Why Are Some Supplies Exempt? Certain industries are exempt to: Which Sectors Are VAT Exempt in […]
VAT Registration in UAE: Step-by-Step Guide for Businesses (2025)
What is VAT Registration in UAE? VAT registration is the process through which a business obtains a Tax Registration Number (TRN) from the Federal Tax Authority (FTA). Once registered, the business is legally allowed to: Who Needs to Register for VAT in UAE? There are three categories: Mandatory Registration If your taxable turnover exceeds AED 375,000 in the […]
What is VAT in the UAE? Everything You Need to Know (2025 Update)
What is VAT? VAT (Value Added Tax) is a 5% indirect tax levied on the supply of most goods and services in the UAE. It was introduced on January 1, 2018, as part of the GCC-wide tax agreement to reduce reliance on oil-based income. Why Was VAT Introduced in UAE? The main reasons: Who Needs to […]
Branch vs. Subsidiary in the UAE: Corporate Tax Differences Explained (2025 Update)
Introduction: In the UAE, businesses often ask:“Should we set up a branch or a subsidiary — and how does each affect our corporate tax liability?” With the Corporate Tax Law now fully enforced since June 2023, the structure you choose directly impacts your registration obligations, reporting rules, and tax exposure. This blog provides a clear breakdown […]
UAE Free Zone Companies & Corporate Tax: Updated 2025 Guide
Introduction: As UAE Corporate Tax enforcement tightens in 2025, Free Zone businesses are under pressure to prove they meet the conditions for the much-desired 0% tax rate. The Federal Tax Authority (FTA) has clarified that all Free Zone entities are subject to Corporate Tax — but only some can qualify for relief under QFZP (Qualifying Free […]
Corporate Tax for Natural Persons and Sole Proprietors in the UAE (2024 Guide)
Introduction: One of the most frequently searched questions in the UAE is:“Does Corporate Tax apply to individuals or freelancers?” The short answer is: Yes — if you’re conducting a business or professional activity and meet the income threshold. Under UAE Corporate Tax Law, natural persons, including freelancers, influencers, consultants, and sole proprietors, must comply with […]
Transfer Pricing Rules in the UAE: What Every Business Must Know (2024 Guide)
Introduction: With the introduction of Corporate Tax in the UAE from June 1, 2023, the country has also implemented Transfer Pricing (TP) regulations to prevent profit shifting and ensure tax fairness. Whether you’re a multinational or a local group of companies, related party transactions are now under strict scrutiny. This blog breaks down everything UAE-based businesses are searching […]
