Principles and basics of VAT in the United Arab Emirates

1-Mandatory registration limit

The mandatory registration limit for taxable supplies shall be AED 375,000 during the twelve months preceding the taxable person upon reaching the mandatory registration threshold Apply to the Federal Tax Authority within 30 days of reaching the registration threshold for registration

2-Optional registration limit

The voluntary registration limit for taxable supplies is AED 187.5 thousand during the twelve months preceding the taxable person upon reaching the voluntary registration threshold Apply to the Federal Tax Authority within 30 days of reaching the registration threshold with an application for registration

Second, types of supplies

1-Taxable supplies at the basic rate of 5%

2-Zero-rated supplies, the most famous of which are

1.Export of goods and services

2.International passenger and commodity transport services

3.Precious metals with 99% purity

4.Residential buildings at the first supply

5.Education Services

6.Healthcare Services

3-Supplies exempt from VAT and are among the most famous

1.Financial Services

2.Residential Buildings

3.Earth Space

4.Local passenger transport services

( With Expert CPA For Request services )