Understanding UAE VAT: Who Needs to Register and How It’s Done

Planning to start or already running a business in the UAE? Then it's important to learn how VAT affects your operations. VAT was launched in the UAE in January 2018 to support economic diversification away from oil reliance. Since then, VAT compliance has become a legal responsibility for eligible businesses. In this guide, you'll find comprehensive information on VAT in the UAE, including eligibility, registration steps, and how to stay compliant. The language used is simple and clear so that even someone with a basic understanding of business can follow along. What is VAT? The majority of goods and services sold are taxed by the government under VAT regulations. It is collected at each stage of the supply chain and is ultimately paid by the final consumer. Businesses registered for VAT act as intermediaries to collect taxes for the government. In the UAE, a five percent VAT is levied on transactions that meet the taxable criteria. This means if a business sells a...