Frequently Asked Questions
- Value Added Tax in Dubai is a consumption tax levied on the value added to goods and services at each stage of production or distribution.
- Businesses whose taxable supplies and imports exceed the mandatory registration threshold of AED 375,000 per annum are required to register for Value Added Tax in Dubai.
- The standard rate of Value Added Tax in Dubai is 5%.
- Yes, certain goods and services are exempt from VAT, such as residential properties, local transport, and healthcare services.
- Yes, tourists can claim a refund of VAT in Dubai paid on eligible purchases made at registered retailers through the Tax-Free Shopping Scheme.
- VAT returns must be filed by registered businesses every quarter, within 28 days following the end of the tax period.
- Non-compliance with VAT regulations may result in penalties, fines, and legal action by the Federal Tax Authority (FTA).
- Yes, certain industries or sectors may benefit from Value Added Tax in Dubai incentives or schemes implemented by the government to promote economic growth and development.
- Yes, businesses can generally recover VAT in Dubai, paid on goods and services used for business purposes, provided they meet the conditions for input tax recovery.
- Businesses can seek assistance from VAT consultants, tax advisors, or directly from the Federal Tax Authority (FTA) for guidance on VAT compliance and regulations in Dubai.