The Impact of VAT on Businesses in the UAE
- Ramzi Khatir
- Jul 19, 2024
- 1 min read
Value-Added Tax (VAT) was introduced in the UAE in 2018. This blog explores its impact on businesses and how to ensure compliance.
VAT Rates
The standard VAT rate in the UAE is 5%.
Registration
Businesses with an annual turnover exceeding AED 375,000 must register for VAT.
Compliance
Ensure proper record-keeping and timely VAT returns to avoid penalties.
Impact on Prices
Understand how VAT affects pricing strategies and customer behavior.
Exemptions
Certain goods and services, such as healthcare and education, are exempt from VAT or zero-rated.
Conclusion
Understanding the impact of VAT on your business can help you manage compliance and minimize its effects on your operations.
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