VAT ADVISORY
Clarity, Compliance & Control in
Every Return
Clarity, Compliance & Control in Every Return
Value Added Tax (VAT) is an indirect consumption tax introduced in the UAE in 2018. It applies to most goods and services at a standard rate of 5%.
All businesses with taxable supplies above AED 375,000/year must register with the Federal Tax Authority (FTA), while those above AED 187,500 may register voluntarily.
At AKW Consultants, we simplify VAT, so you stay compliant, audit-ready, and financially efficient.
Five Common VAT Challenges in the UAE
01
Incorrect VAT Classification
Mixing up standard, zero-rated, or exempt supplies leads to underpayment, overpayment, or missed recoverability.
02
Deemed Supplies & Group VAT Mismanagement
Companies often forget to declare deemed supplies or mishandle intra-group transactions.
03
Poor Record-Keeping
Missing invoices, incomplete ledgers, or weak documentation raise audit risks.
04
Filing Errors & Missed Deadlines
Late or incorrect filings trigger penalties and increased FTA scrutiny.
05
Underclaimed Input Tax
Businesses miss legitimate refunds or claim tax on ineligible expenses, losing money or facing penalties.
HOW WE HELP
Our VAT Advisory Solutions
VAT Registration & Group Structuring
- Assess eligibility (mandatory/voluntary registration)
- Register or deregister with the FTA
- Set up Tax Groups to simplify intra-company VAT treatment
VAT Return Filing & Ongoing Compliance
- Prepare and submit quarterly/monthly VAT returns
- Apply Reverse Charge Mechanism correctly
- Manage reconciliations, disclosures, and corrections
Documentation & Record-Keeping
- Build FTA-compliant ledgers and audit trails
- Support with tax invoice formatting, credit notes, and record retention
- Provide assistance during FTA audits and clarifications
VAT Health Checks & Advisory
- Conduct VAT “health checks” to spot risks before audits
- Review input tax eligibility and capital asset recovery
- Advise on deemed supplies and sector-specific VAT treatments
- Support VAT refund applications and ERP compliance
Why Businesses Choose AKW
Chartered Accountants & VAT Experts with deep UAE regulatory insight
End-to-end VAT management from
registration to refunds
Sector-specific VAT expertise in real estate, crypto, gold, healthcare, e-commerce
Proven track record with FTA audits,
disputes & disclosures
Integrated with ERP & cloud accounting systems for automation
Trusted advisor for VAT Group structuring
and cross-border VAT
Your VAT Health. Fully Aligned.
Whether you’re a newly registered entity or facing an FTA audit, AKW ensures your VAT filings are accurate, compliant, and defensible.
FREQUENTLY ASKED QUESTIONS
Who must register for VAT in the UAE?
- Mandatory: taxable supplies ≥ AED 375,000/year
- Voluntary: taxable supplies ≥ AED 187,500/year
How often are VAT returns filed?
Usually quarterly, though high-turnover businesses may be required to file monthly.
What’s the difference between zero-rated and exempt supplies?
| Category | VAT Rate | Input VAT Recovery | Examples |
|---|---|---|---|
| Zero-Rated | 0% | Allowed | Exports, intl. transport, investment metals, some healthcare & education |
| Exempt | 0% | Not Allowed | Residential leases, bare land, financial services |
How long must VAT records be retained?
5 years (15 years for real estate).
What are some VAT penalties in the UAE?
| Violation | Penalty |
|---|---|
| Failure to register | AED 10,000 |
| Delayed deregistration | AED 1,000/month (max 10,000) |
| Failure to display prices inclusive of VAT | AED 5,000 |
| Incorrect Tax Return | AED 1,000 (first), AED 2,000 (repeat) |
| Late VAT payment | Up to 300% cumulative (interest + fines) |
What are the penalties for poor records?
Up to AED 10,000 for a first violation and AED 20,000 for repeat non-compliance.