Profitrack provides end-to-end VAT solutions — from registration and compliance to audits and advisory — ensuring your business remains fully compliant with UAE Federal Tax Authority regulations while maximising your tax efficiency.
The UAE introduced Value Added Tax (VAT) at a standard rate of 5% in January 2018, marking a significant shift in the country's fiscal landscape. Since then, compliance with FTA regulations has become a critical responsibility for every qualifying business in the UAE — and the penalties for non-compliance can be severe.
At Profitrack, our team of qualified VAT consultants brings deep, hands-on experience with UAE VAT law. We guide businesses through every step — from initial registration and day-to-day compliance to complex advisory and audit support — ensuring that your VAT obligations are handled with complete accuracy and confidence.
| VAT Category | Rate | Examples |
|---|---|---|
| Standard Rate | 5% | Most goods and services |
| Zero-Rated | 0% | Exports, international transport, healthcare, education |
| Exempt | Exempt | Certain financial services, residential real estate, local transport |
From your first registration to ongoing compliance and beyond, our VAT team handles every dimension of your UAE VAT obligations.
We guide your business through the entire VAT registration process with the FTA — gathering and verifying all required documentation, submitting your application accurately, and ensuring registration is completed without delays. Mandatory for businesses with taxable supplies exceeding AED 375,000 annually.
Ongoing compliance is the backbone of sound VAT management. We keep your business continuously up to date with all FTA filing requirements, maintain accurate and complete VAT records, manage payment schedules, and ensure every transaction is correctly classified — so you never face a compliance gap.
Strategic VAT planning can unlock significant savings. Our advisors identify applicable zero-rating provisions, input tax credits, and planning opportunities unique to your industry and business model — maximising your tax efficiency while keeping you firmly within the boundaries of UAE VAT law.
Whether you face an FTA audit or want to proactively identify risks, our thorough internal VAT audits review your records, returns, and processes from the ground up. We identify discrepancies, resolve potential issues, and prepare your business to face any external audit with complete confidence.
Accurate and timely VAT return filing is non-negotiable under UAE law. Our team prepares and submits your quarterly or monthly VAT returns with full documentation, reconciles input and output tax, and manages any adjustments or corrections — ensuring zero errors and zero late filings.
Equip your internal team with the knowledge to handle VAT correctly at the source. We deliver tailored training sessions covering UAE VAT fundamentals, correct invoice treatment, record-keeping obligations, and common compliance mistakes — building internal capability that reduces errors and costs.
Our VAT consultants don't just file returns — we become a proactive compliance partner that safeguards your business and actively seeks ways to reduce your VAT burden.
Stay informed with our expert guides on UAE VAT rules and obligations.
Understanding the distinction between exempt and zero-rated supplies is crucial for correct VAT treatment. Read our comprehensive guide.
Late VAT submissions carry serious financial consequences under UAE law. Find out what penalties apply and how to avoid them entirely.
Get quick answers to the most common questions we receive about Value Added Tax in the UAE.
Any business with taxable supplies and imports exceeding AED 375,000 per year is required to register for VAT with the Federal Tax Authority (FTA). Voluntary registration is available for businesses whose taxable supplies exceed AED 187,500 per year. Failure to register when required can result in significant penalties, so it is important to monitor your revenue thresholds carefully.
The UAE applies a standard VAT rate of 5% on most goods and services. However, certain supplies are zero-rated (0%), including exports of goods and services outside the GCC, international transport, and specific healthcare and education services. Other supplies are VAT-exempt entirely — such as certain financial services, bare land transactions, and local passenger transport. Correctly classifying each supply type is essential for accurate VAT accounting.
VAT returns are typically filed quarterly in the UAE, with the deadline falling on the 28th day of the month following the end of the tax period. For example, if your tax period ends on 31 March, your return and payment are due by 28 April. Some businesses are assigned a monthly filing period by the FTA. Missing the deadline — even by one day — triggers an automatic penalty, so proactive deadline management is critical.
The FTA imposes strict penalties for late or incorrect VAT filings. For a first-time late submission, the penalty is AED 1,000. For any subsequent late filing within 24 months, the penalty increases to AED 2,000. Additional penalties apply for underpayment of VAT, incorrect returns, and failure to maintain proper records. These penalties accumulate quickly, making proactive compliance the most cost-effective approach.
Yes, absolutely. Our experienced VAT team provides comprehensive FTA audit support — from pre-audit preparation and document organisation to representing your business during the audit process and responding to FTA queries and assessments. We also conduct proactive internal VAT audits to identify and resolve any potential issues before the FTA does, giving you complete confidence in your compliance position.
Whether you need to register, file a return, or resolve an FTA issue, Profitrack's expert VAT consultants are ready to help. Book your free consultation now.