VAT Registration

Value Added Tax or VAT is a tax on the consumption or use of goods and services levied at each point of sale. More than 180 countries around the world use VAT as a form of indirect tax. The end-consumer ultimately bears the cost. Businesses collect and account for the tax on behalf of the government.

About VAT
Value Added Tax (VAT) was introduced in the UAE on 1 January 2018. The rate of VAT is 5 per cent. VAT will provide the UAE with a new source of income that it will continue to utilize to provide high-quality public services. It will also help government move towards its vision of reducing dependence on oil and other hydrocarbons as a source of revenue.
Implication of VAT on individuals VAT, as a general consumption tax, will apply to the majority of transactions in goods and services. 

VAT-registered businesses generally:
⚫ must charge VAT on taxable goods or services they supply
⚫ may reclaim any VAT they have paid on business-related goods or services
⚫ keep a range of business records which will allow the government to check that they have got things right.