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Navigating VAT (Value Added Tax) compliance in the UAE can be complex and time-consuming.
At Capital Zone Accounting and Bookkeeping, we provide expert VAT accounting services designed to keep your business fully compliant with UAE VAT laws while optimizing your tax position.
Our VAT specialists offer end-to-end support — from VAT registration to return filing, refunds, and voluntary disclosures — allowing you to focus on what matters most: growing your business.
What We Offer
We manage the complete VAT registration process with the Federal Tax Authority (FTA), ensuring your business meets all eligibility and documentation requirements efficiently and on time.
If you’ve discovered errors or omissions in previous VAT returns, we assist in filing voluntary disclosures. Our team ensures your corrections are submitted accurately to the FTA, minimizing penalties and maintaining compliance.
We prepare and submit VAT returns accurately and on schedule. Our team reviews input and output VAT calculations thoroughly to ensure full compliance and minimize the risk of costly fines.
If your business faces VAT penalties, we help you apply for adjustments or waivers by preparing the necessary justifications and documentation to potentially reduce or eliminate fines.
If you are eligible for a VAT refund due to overpayment or qualifying circumstances, we handle the refund application process, ensuring timely submission and proper documentation to facilitate smooth approvals.
We regularly review your VAT practices to ensure they align with the latest FTA guidelines. Our advisory services help you optimize VAT efficiency, identify reliefs, and minimize liabilities.
We reconcile your VAT reports with financial records, verifying that all sales and purchase invoices are correctly accounted for. This ensures the accuracy of your VAT submissions and internal documentation.
Facing a VAT audit? We provide complete support, including document preparation, reconciliation assistance, and representation during the audit process to ensure a smooth and compliant experience.
If you import goods or services from outside the UAE, VAT is not charged by the supplier. Instead, you are required to account for VAT under the reverse charge mechanism (RCM). These imports are considered taxable supplies when calculating your VAT registration threshold.
Example:
If you purchase software services from a US-based company and no VAT is charged, you are still liable to report and pay VAT under RCM—and this amount counts toward your taxable supplies threshold.
Local purchases where VAT has already been charged by the supplier
Non-taxable or exempt purchases (e.g., residential rent, certain financial services)
Normal business expenses like office supplies and salaries
These do not count toward the AED 375,000 threshold for mandatory VAT registration.
| Type of Purchase | Counts Toward VAT Registration? |
|---|---|
| Local purchases (with VAT charged) | ❌ No |
| Imports of goods/services (RCM applies) | ✅ Yes |
| Salaries, residential rent (exempt supplies) | ❌ No |
VAT (Value Added Tax) is a consumption tax applied to most goods and services in the UAE at a standard rate of 5%. Businesses that meet the VAT threshold must register with the Federal Tax Authority (FTA) and file VAT returns accordingly.
You must register for VAT if your taxable supplies and imports exceed AED 375,000 in the past 12 months or are expected to exceed that threshold in the next 30 days. If your turnover is between AED 187,500 and AED 375,000, you may opt for voluntary registration.
Voluntary disclosure allows businesses to correct errors or omissions in previous VAT filings. If you discover a mistake, we assist you in filing a voluntary disclosure to minimize potential penalties and stay compliant.
If you have paid more VAT than due, or if your business qualifies for a VAT refund, we help manage the refund application process with the FTA, ensuring that all documentation is accurate and complete.
Input VAT: The VAT you pay on your business purchases.
Output VAT: The VAT you charge your customers on sales.
You can offset input VAT against output VAT, thereby reducing your overall VAT liability.
Yes, we assist businesses in applying for fine adjustments or waivers by submitting proper justifications to the FTA. This can potentially reduce or eliminate penalties depending on the circumstances.
Our services are suitable for all types of businesses from startups and SMEs to large enterprises. Whether you’re in retail, hospitality, professional services, or any other sector, we tailor our solutions to meet your specific financial and regulatory needs.
We provide financial reports on a monthly, quarterly, and annual basis, depending on your preference and business requirements. These reports include income statements, balance sheets, and cash flow statements, giving you a clear view of your financial performance.
Yes, all our bookkeeping and accounting services are fully VAT-compliant. We manage VAT calculations, returns, and timely submissions to the Federal Tax Authority (FTA), ensuring your business stays compliant and avoids penalties.
Absolutely. We work with a wide range of accounting software, including QuickBooks, Zoho Books, Xero, Tally, and more. Our team can seamlessly integrate with your current systems or help you migrate to a more efficient platform if needed.
Providing expert accounting, tax, and compliance services tailored to help UAE businesses grow, stay compliant, and make smarter decisions.
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