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VAT SERVICES

VAT audit defense

Professional, accurate, and FTA-compliant solutions optimized specifically for your VAT audit defense requirements in the UAE.

2,000+
VAT Returns Filed
AED 120M+
VAT Refunds Successfully Claimed
100%
Filing Deadline Compliance
7+
Years of UAE VAT Experience

VAT Services in the UAE

Value Added Tax (VAT) was introduced in the UAE on 1 January 2018 at a standard rate of 5%, fundamentally changing the indirect tax landscape for businesses across all Emirates. The Federal Tax Authority (FTA) administers VAT and requires registered businesses to charge, collect, report, and remit VAT on taxable supplies. Our VAT services team combines deep technical knowledge of UAE VAT legislation - including Federal Decree-Law No. 8 of 2017, Cabinet Decision No. 52 of 2017, and the Executive Regulation - with practical experience gained from serving hundreds of businesses across diverse sectors.

Navigating UAE VAT requires careful attention to input tax recovery rules, place of supply provisions, zero-rating criteria for exports and certain Free Zone transactions, and the specific treatment of real estate, financial services, and digital supplies. Common mistakes - such as incorrect tax treatment of intercompany transactions, failure to account for the reverse charge mechanism, or errors in the designated zone regime - can result in costly FTA penalties and reputational damage. Our team ensures you get it right, every time.

From initial VAT registration through to ongoing return filing, refund claims, and FTA audit defence, we provide a complete VAT management solution. Our clients range from startups registering for VAT for the first time to large multinational groups managing complex cross-border supply chains across the GCC and beyond.

Our VAT Service Offerings

Complete VAT lifecycle management - from registration and compliance through to refund recovery and audit defence.

01

VAT Registration

We handle your mandatory or voluntary VAT registration with the FTA, ensuring all required documentation is accurately prepared and submitted through the EmaraTax portal. Our team determines the correct registration category, effective date, and tax group eligibility to position your business for optimal compliance from the outset.

02

VAT Return Filing

Our team prepares and files your periodic VAT returns (VAT 201) on the FTA portal, ensuring accurate reporting of output tax, input tax, and net VAT payable or refundable. We review every transaction for correct VAT treatment, reconcile your VAT account, and submit returns well before the deadline to avoid late-filing penalties.

03

VAT Refund Claims

If your business consistently generates excess input tax - common in export-oriented businesses, new capital-intensive ventures, and certain Free Zone operations - we manage the entire VAT refund application process with the FTA. Our detailed refund submissions are supported by comprehensive documentation that maximises your chances of full and timely recovery.

04

VAT Audit Defence

When the FTA initiates a VAT audit, our specialists step in to manage the process from notification through to resolution. We prepare your audit file, respond to FTA queries, negotiate on proposed assessments, and lodge reconsiderations or appeals where appropriate. Our goal is to protect your business from unwarranted adjustments and minimise any financial exposure.

05

VAT Planning & Advisory

We provide strategic VAT advisory to help you structure transactions, contracts, and supply chains in the most tax-efficient manner permitted under UAE law. Our advice covers topics such as profit margin scheme eligibility, capital asset scheme implications, and the VAT treatment of complex arrangements including agency, joint ventures, and cross-border services.

What You Receive

Precise, audit-ready VAT deliverables that keep your indirect tax obligations fully managed.

FTA VAT registration certificate and TRN
Completed VAT return (Form VAT 201) with supporting schedules
Input and output tax reconciliation workbook
VAT refund application with full supporting documentation
FTA audit response file and correspondence log
VAT health-check report with risk assessment
Transaction-level VAT classification review
Customised VAT advisory memoranda for complex transactions

Frequently Asked Questions

Find answers to the most common questions about our VAT audit defense services in the UAE.

What is the VAT registration threshold in the UAE and do I need to register?+
The mandatory VAT registration threshold in the UAE is AED 375,000 of taxable supplies and imports over the previous 12 months, or if you anticipate exceeding this amount in the next 30 days. Voluntary registration is available for businesses with taxable supplies or expenses exceeding AED 187,500. Registration is completed through the FTA's EmaraTax portal. Failure to register when required can result in a penalty of AED 10,000. Our team assesses your registration obligation and handles the entire process to ensure timely compliance.
How often do I need to file a VAT return in the UAE?+
Most UAE-registered businesses file VAT returns on a quarterly basis, although the FTA may assign a monthly filing period for larger businesses or those in specific sectors. Your specific tax period is assigned by the FTA at the time of registration and displayed in your EmaraTax account. VAT returns must be filed and any net VAT payable must be remitted within 28 days following the end of each tax period. Late filing incurs a fixed penalty of AED 1,000 for the first offence and AED 2,000 for repeat offences within 24 months.
How can I claim a VAT refund from the FTA in the UAE?+
To claim a VAT refund, you must submit a refund application through the EmaraTax portal after filing the relevant VAT return showing a net refundable position. The FTA will review your claim and may request supporting documentation such as purchase invoices, customs declarations, and bank statements. Refunds are typically processed within 20 business days of the FTA accepting the application, though complex claims may take longer. Our team prepares detailed, well-documented refund applications that have a proven track record of full recovery with minimal FTA queries.
What are the most common VAT mistakes businesses make in the UAE?+
The most common VAT errors we encounter include incorrect input tax recovery on blocked items (such as entertainment expenses), misapplication of the reverse charge mechanism on imported services, failure to account for the tax point correctly on continuous supplies, and incorrect zero-rating of exports without proper evidence of export. Additionally, many businesses operating in designated zones incorrectly assume all their supplies are outside the scope of VAT. These errors can trigger FTA penalties and interest charges that significantly exceed the underlying tax amount.
Do Free Zone companies need to charge VAT in the UAE?+
It depends on the type of Free Zone and the nature of the supply. Companies operating in designated zones (as specified by Cabinet Decision) do not charge VAT on goods sold to other designated zone businesses, but they must charge VAT on services and on goods supplied to mainland customers. Companies in non-designated Free Zones are treated the same as mainland businesses for VAT purposes. The distinction between designated and non-designated zones, and between goods and services, is a critical area where professional VAT advice can prevent costly errors.