All Posts

Value Added Tax (VAT) registration is a crucial step for many businesses, especially those operating in regions where VAT is a mandatory tax system. Understanding the importance of VAT registration can help businesses comply with legal requirements, improve financial management, and enhance credibility with customers and suppliers. This article explores why VAT registration matters, how it impacts your business, and practical steps to ensure you meet your obligations effectiv

Introduction to the New Penalty Framework To ensure the integrity and timely adoption of this critical digital framework, the Ministry of Finance has published Cabinet Decision No. 106 of 2025. This decision details a structured and significant penalty regime for non-compliance. These penalties highlight the government’s serious commitment to the new system. Overview of Penalties The penalties outlined in this decision are designed to enforce preparation and compliance across

Transport can fall under 3 VAT treatments: Zero rated (0%) Exempt (0% but no input recovery) Standard rated (5%) Understanding which type applies depends on: Type of transport Purpose (passenger vs goods) Local or international. Vehicle type (bus, limo, taxi, truck) Whether the passenger pays directly or through the company contract. Zero rated transport: 1-International transport falls under zero-rated. Examples include: Emirates flight from Dubai to London Sea Cargo from Je

Voluntary VAT Registration: When taxable supplies or taxable expenses exceed AED 187,500 in the previous 12 months or expected to be in the next 30 days, voluntary registration is possible. Mostly startups voluntary register for VAT who have significant input VAT and want to recover it. Mandatory VAT Registration: When taxable supplies +imports (rolling 12 months) exceed AED 375,000 or expected to exceed AED 375,000 in the next 30 days, it becomes mandatory to register for VA