Tax Compliance Hub

Value Added Tax (VAT) in the UAE is a general consumption tax levied at a standard rate of 5% on the majority of goods and services. It was introduced on January 1, 2018, to diversify government revenue sources. VAT is an indirect tax, meaning the end consumer ultimately bears the cost, but it is collected by businesses at each stage of the supply chain where value is added.

AT registration is mandatory for businesses whose annual taxable supplies and imports exceed AED 375,000. Voluntary registration is allowed for those above AED 187,500. There could be other instances where a business needs to register; therefore, please consult with us to determine your registration requirements.

Once the threshold is met or expected to be met, the entity must register for VAT within 30 days. Failure to register on time will result in a penalty of AED 10,000.

A VAT Registration Number (or TRN) is a unique Tax Registration Number issued by the FTA once your VAT Registration is approved. It is essential for invoicing, filing VAT returns, and staying compliant with FTA regulations.

VAT returns in the UAE must be filed electronically via the Federal Tax Authority’s (FTA) EmaraTax portal within 28 days of the end of each tax period. The tax period is usually quarterly, but large businesses (annual turnover above AED 150 million) may be required to file monthly. Failure to file VAT tax returns on time will result in a penalty of AED 1,000 for the first offense and AED 2,000 for subsequent offenses.

Late payment of VAT will result in a penalty of 2% of unpaid tax immediately, 4% after 7 days, and 1% per month thereafter.

Yes. Supplies to foreign clients, imports, or online sales require careful VAT considerations. Incorrectly charging VAT on exports or not accounting for import VAT can lead to noncompliance and fines.

Corporate Tax in the UAE is a federal tax on business profits, introduced for financial years starting on or after 1 June 2023. The standard rate is 0% on taxable income up to AED 375,000 and 9% above that threshold.

All businesses operating in the UAE must register for Corporate Tax with the Federal Tax Authority (FTA), regardless of whether they expect to pay tax. This includes mainland companies, Free Zone entities, branches of foreign firms, and even individuals conducting business activities above a certain threshold. Non-registration can lead to fines ranging from AED 500 to AED 20,000.

If you operate a business in the UAE—whether mainland, Free Zone, foreign branch, or as an individual earning over AED 1 million—you must register for Corporate Tax. Even entities expecting 0% tax must register to remain compliant.

Yes, within legal limits. Using multiple legal entities, holding companies, or appropriate ownership structures can sometimes optimize tax outcomes. However, all structures must comply with UAE tax law, anti-abuse rules, and substance requirements.

• UAE government and related entities

• Extractive industries (e.g., oil, gas, mining)

• Qualifying public benefit entities

• Qualifying investment funds

• Social security and pension funds (as listed by the FTA)

• Register for VAT if eligible.

• Issue proper invoices to brands and clients.

• Keep detailed records of all sponsorships, payments, and expenses.

• File VAT returns on time and claim input VAT on business-related expenses like equipment or studio rent.

• Seek professional advice for cross-border collaborations and digital services.

Nasmah Consulting offers comprehensive VAT, Corporate Tax, accounting, and audit services for businesses across the UAE.

Nasmah Consulting offers comprehensive VAT, Corporate Tax, accounting, and audit services for businesses across the UAE.

VAT Compliance Support

• Registration & Advisory: Guidance on mandatory and voluntary VAT registration, ensuring timely compliance with FTA rules.

• Return Filing: Preparation and submission of accurate VAT returns via the EmaraTax portal.

• Record-Keeping: Assistance in maintaining VAT-compliant invoices and documentation for the required 5-year period.

• Refunds & Recovery: Support in claiming input VAT refunds and managing cash flow efficiently.

• Training & Awareness: Tailored workshops for your finance team to stay updated on VAT rules.

Corporate Tax Compliance Support

• Corporate Tax Registration: Handling registration with the FTA for mainland, Free Zone, and foreign entities.

• Tax Calculation & Filing: Preparing annual corporate tax returns, ensuring accurate profit calculations and deductions.

• Free Zone Advisory: Structuring operations to maximize qualifying income benefits under the 0% regime.

• Penalty Avoidance: Proactive compliance checks to prevent fines for late filing or incorrect disclosures.

• Strategic Planning: Advisory on group structures, cross-border tax implications, and OECD minimum tax rules for multinationals.

Whether you’re a startup, SME, or multinational, Nasmah Consulting ensures your VAT and Corporate Tax obligations are met with precision and confidence. Contact us today to safeguard your compliance and focus on growing your business.