Running a business in Dubai? One term you’re going to see a lot is VAT (Value Added Tax). At Mirhaa Bookkeeping and Taxation Co., we help business owners make sense of VAT when to register, how to file, and what mistakes to avoid. Here’s your quick guide.
What is VAT & Why It Matters
VAT is a tax that’s charged at each stage of the supply chain, from supplier to consumer. It supports public services and infrastructure roads, hospitals, schools, etc. But for businesses, it means you have compliance responsibilities: collecting the tax, filing returns, and keeping accurate records.
If you miss deadlines or make errors, you could face penalties. That’s where experts like us step in.
Do You Need to Register for VAT?
Yes if your taxable supplies and imports exceed the mandatory registration threshold in the UAE. As of now, that threshold is AED 375,000 in annual taxable supplies. If you expect to hit that, registration is required.
If you’re below but expect to cross the threshold, it might be wise to register voluntarily — sometimes the benefits (like reclaiming VAT on expenses) outweigh the costs.
Key VAT Compliance Steps
- Maintain Accurate Records
Keep invoices, receipts, contracts—anything that shows goods/services sold, VAT collected, and VAT paid. Digital or paper, but organized. - File VAT Returns on Time
Typically every quarter (but depends on your classification). Missed deadlines = fines. - Understand Input vs. Output VAT
- Output VAT: what you collect from customers.
- Input VAT: what you pay on your purchases.
- Seek Expert Advice
VAT law can be technical: what counts as a taxable supply, what goods/services are zero-rated or exempt, etc. A small misinterpretation can lead to trouble.
How Mirhaa Can Help
At Mirhaa, we offer:
- VAT Registration services — to get you set up correctly from the start.
- VAT Consultancy & Advisory — helping you understand the finer rules and plan for your business.
- VAT Return Filing Assistance — submitting returns correctly and on time.
- VAT Deregistration — if your business no longer needs to be VAT-registered.
We tailor everything to your business needs so you spend less time worrying about compliance, and more time growing.
Bottom Line
VAT is a fundamental part of doing business in the UAE now. It brings responsibility, but also structure, transparency, and the possibility of reclaiming certain costs. To avoid penalties, maximize benefits, and ensure peace of mind — talking to tax professionals early is always a smart move.
