Tax Services


Tax Services

What is VAT?

Value Added Tax is a tax on consumption levied at each stage of the supply chain and ultimately borne by the end consumer.

VAT is a transaction-based indirect tax which is levied at each step of the supply chain. End consumers generally bear the VAT cost while registered businesses collect and account for the tax, in a way acting as a tax collector on behalf of the Federal Tax Authority.

Tax Services

Who will be able to register for VAT?

Any business which exceeds mandatory or voluntary registration thresholds may be required or may be able to register for VAT

A business must register for VAT if its taxable supplies and imports exceed the mandatory registration threshold of AED 375,000.

Furthermore, a business may choose to register for VAT voluntarily if its supplies and imports are less than the mandatory registration threshold, but exceed the voluntary registration threshold of AED 187,500.

Similarly, a business may register voluntarily if its expenses exceed the voluntary registration threshold. This latter opportunity to register voluntarily is designed to enable start-up businesses with no turnover to register for VAT.

What is Taxable Supply?

For the purposes of understanding whether a registration obligation exists, a taxable supply refers to a supply of goods or services made by a business in the UAE that may be taxed at a rate of either 5% or 0%. Imports are also taken into consideration for this purpose, if a supply of such goods or services would be taxable if made within the UAE.

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Excise Tax

Excise Tax is a form of indirect tax levied on specific goods. These goods are typically those that are harmful to human health or the environment. The intent of Excise Tax is to reduce consumption of these commodities while also raising revenues for the government that can be spent on public services. The UAE, Excise Tax is currently applied on the following goods:

Tobacco and tobacco products

Liquids used in electronic smoking devices and tools

Electronic smoking devices and tools
Carbonated drinks (note that this excludes sparkling water)

Energy drinks

Sweetened drinks

Which businesses must register for excise tax?

All businesses that import, produce or release excise goods from a designated zone must consider their registration requirements and compliance responsibilities related to filing and paying Excise Tax.

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Double Taxation Agreements

Double taxation is defined when similar taxes are imposed in two countries on the same tax payer on the same tax base, which harmfully affects the exchange of goods, services and capital and technology transfer and trade across the border.

Public and private companies, investment firms, air transport firms and other companies operating in the UAE, as well as residents, benefit from Avoidance of Double Taxation Agreements (DTA). With the purpose of promoting its development goals, the UAE concluded 115 DTA to with most of its trade partners.

The purpose is avoidance of double taxation agreements
Promote the development goals of the UAE and diversify its sources of national income

Eliminating double taxation, additional taxes and indirect taxes and fiscal evasion
Offer full protection to tax payers from double taxation, whether direct or indirect and avoid obstructing the free flow of trade and investment and promoting the development goals, in addition to diversify sources of national income and increase the size of investments inflows

Take into consideration the taxation issues and the global changes in the economic, financial sectors, and the new financial instruments and the mechanisms of transfer pricing

Encourage the exchange of goods, services and capital movements and remove the difficulties relating to cross-border trade and investment flows

Tax Residency Certificate

A certificate issued by the FTA to enable applications to benefit from Double Tax Avoidance Agreements (DTAA) on income signed by the UAE. Commercial activities certificate: a certificate issued by the FTA to enable applicants to refund VAT paid outside the UAE, whether or not DTAAs are applicable.

Commercial Activities Certificate

A certificate issued by the FTA to enable applicants to refund VAT paid outside the UAE, whether or not DTAAs are applicable.

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Fines Removal Request

If you wish to submit a reconsideration application in relation to any decision made by the FTA, please contact us

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VAT Refund

Every Taxable Person is required to file a VAT return summarizing the VAT due to the FTA for the tax period. When the input tax is greater than output tax on a VAT return, the Taxable Person is able to request a VAT refund after submission of the VAT return or at any later time when there is a credit owed to them.

Vat Refund for building new residences by UAE nationals.

Who is qualified?

Criteria relating to the usage of expenses

Expenses must relate to a newly constructed building which is to be used solely as a residence of the applicant and / or his / her family. 

Criteria relating to the nature of expenses
Services provided by contractors, including services of builders, architects, engineers, and other similar services necessary for the successful construction of a residence.
Building materials, being goods of a type normally incorporated by builders in a residential building or its site, but not including furniture or electrical appliances.
Goods/materials are normally considered to be incorporated into a building when they are fixed in such a way that the fixing or removal of those goods would either require the use of tools, or result in the need for remedial work to the fabric of the building, or substantial damage to the goods/materials themselves.
Examples of goods which are not considered to be incorporated into the building include:

· Removable appliances

· Furniture such as sofas, tables, chairs etc.

· Landscaping, such as trees, grass and plants

· Swimming pools

Examples of goods which are not considered to be incorporated into the building and are eligible for a refund of VAT include:

· Central air conditioning and split units

· Doors

· Fire alarms and smoke detectors;

· Flooring (excluding carpets)

· Kitchen sinks, work surfaces and fitted cupboards

· Sanitary units

· Shower units

· Window frames and glazing

· Wiring when embedded inside the structure of the building

When should you submit your application to the FTA?

The Refund Form must be sent to the FTA within 6 months from the date of completion of the newly built residence which is the earlier of the date: the residence becomes occupied or when it is certified as completed by a competent authority in the UAE (per the Building Completion Certificate).

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Services we provide

If you wish to submit a reconsideration application in relation to any decision made by the FTA, please contact us

VAT Registration At UAE FTA & Issuing Tax Certificates.

VAT Reporting And Submitting Your Tax Returns As Per FTA Requirements.

Taxation Procedures Follow-Up.

Submit Of Requests For Reconsideration And Objections.

Excise Tax Registration And Issuing Tax Certificate.

Issuing (Commercial Activity Certificate) For UAE Residents.

Submitting VAT Refunds Requests.

Issuing Tax (Residency Certificate).

VAT Consultation

With our expertise to interpret and implement VAT, we provide end to end VAT consultation along with hand-holding services to support the business organization for easy operation of a business.

360 Degree VAT Health Check

Through a hands-on approach, MS Plus – Tax Consultant in Dubai undertake 100% check of business transactions and reviews of the current practices, processes, through VAT Tax view point before filing of VAT Return or as per the time frame decided.