Steps to follow for filing Value Added Tax (VAT) in the UAE


  1. Determine VAT registration requirements: Assess whether your business meets the criteria for mandatory VAT registration. If your annual taxable supplies exceed the threshold set by the UAE Federal Tax Authority (currently AED 375,000), you must register for VAT.
  2. Classify your supplies: Categorize your goods and services based on their VAT treatment. The main classifications are standard-rated supplies (5% VAT), zero-rated supplies (0% VAT), and exempt supplies (no VAT).
  3. Calculate taxable value: Determine the value of goods or services on which VAT is applicable. This is typically the selling price or consideration received for the supply of goods or services.
  4. Calculate VAT amount: Multiply the taxable value by the applicable VAT rate (5% for standard-rated supplies) to calculate the VAT amount. VAT amount = Taxable value * VAT rate
  5. Determine the total invoice amount: Add the VAT amount to the taxable value to calculate the total amount payable by the customer. Total amount = Taxable value + VAT amount
  6. Maintain proper records: Keep detailed records of all VAT-related transactions, including sales, purchases, and expenses. Ensure that you have invoices, receipts, and other supporting documents for VAT calculation and reporting purposes.
  7. Issue VAT-compliant invoices: Ensure that your invoices meet the requirements set by the UAE Federal Tax Authority. Include all necessary details, such as VAT registration number, VAT amount, and a clear indication of the VAT treatment for each supply.
  8. File VAT returns: Prepare and submit VAT returns to the UAE Federal Tax Authority within the specified deadlines. VAT returns typically cover a specific period (e.g., quarterly) and require reporting of VAT collected from customers and VAT paid on purchases.
  9. Settle VAT liability: Pay the VAT liability to the UAE Federal Tax Authority within the designated time frame to avoid penalties or interest charges.
  10. Conduct periodic VAT audits: Regularly review your VAT processes and documentation to ensure compliance with VAT regulations. Consider engaging tax professionals or consultants to perform VAT audits and provide guidance on adherence to VAT rules.

It’s important for businesses to understand and effectively manage the impact of VAT on their operations. Seeking guidance from experts in VAT regulations can help businesses navigate the complexities of VAT and ensure compliance while minimizing any adverse effects on their operations.

Kaplan offers an internationally certified VAT Diploma in UAE. This VAT course will provide you with a deep understanding of the regulation and provide strategies for tax computation. It is available in both classroom and online formats, and it is offered in English and Arabic. By enrolling in this VAT training, you will have the opportunity to learn from experienced tax experts and benefit from valuable study materials and resources. Speak to our program advisers to know more!