The UAE’s introduction of Value Added Tax (VAT) in 2018 marked a transformative shift in the region’s fiscal landscape, imposing a 5% standard rate on most goods and services. As an FTA-approved tax agency, Corcess Consulting provides end-to-end VAT solutions—ensuring full compliance while optimizing recoverable input tax and minimizing financial risks. Whether you’re a startup, SME, or multinational, our expertise helps you navigate VAT complexities with precision.

Understanding UAE VAT 

VAT applies to businesses with annual taxable supplies exceeding AED 375,000, requiring mandatory registration. Those with revenues between AED 187,500 and AED 375,000 may opt for voluntary registration. The regime covers standard-rated (5%), zero-rated (0%), and exempt supplies, each with distinct compliance requirements. Misclassification can lead to penalties—our team ensures accurate tax treatment across all transactions. 

Who Must Register for VAT?

– Mandatory Registration: Businesses exceeding AED 375,000 in taxable supplies or expenses. 

– Voluntary Registration: Businesses below the threshold of AED 375,000 but seeking input tax recovery. 

– Non-Resident Businesses: Required to register if making taxable supplies in the UAE.

Late registration penalties can reach AED 20,000, making timely compliance critical. Corcess Consulting handles seamless VAT registration, ensuring correct categorization (standard, zero-rated, or exempt) from day one. 

Exemptions & Zero-Rated Supplies 

Certain sectors benefit from 0% VAT (e.g., exports, international transportation, healthcare, education) or full exemptions (e.g., residential real estate, local passenger transport). Misapplying these rules risks audits and fines.

VAT Compliance & Filing Services

Maintaining full VAT compliance requires meticulous attention to regulatory requirements. All VAT-registered businesses must file accurate quarterly returns aligned with their turnover declarations, while maintaining complete transaction records for a minimum of five years as mandated by the FTA.

Our team ensures every tax invoice issued meets strict FTA formatting requirements, while implementing robust reconciliation processes to perfectly match your output VAT liabilities with recoverable input tax claims. Through our systematic approach, we transform VAT compliance from a regulatory burden into a streamlined process that protects your business from penalties while maximizing input tax recovery opportunities.

VAT Compliance Deadlines: Why Timely Filing Saves Thousands in FTA Penalties

Missing VAT deadlines triggers severe FTA penalties starting from AED 1,000 for late filing (increasing to AED 2,000 for repeat offenses), plus 2% monthly interest on unpaid tax. Errors in disclosures may lead to fines of 50% of underpaid amounts, while poor record-keeping risks penalties up to AED 50,000. These costs compound quickly—just three months of delays could cost AED 3,000+ in fines and 6% interest.

VAT Audit Protection & Dispute Resolution

The Federal Tax Authority conducts rigorous audits examining supply classifications, input tax claims, cross-border transactions, and documentation compliance. Corcess Consulting provides end-to-end audit defense—from pre-audit health checks to penalty appeals—leveraging our FTA-approved status for direct representation. We resolve disputes efficiently while implementing corrective measures to prevent future risks.

Strategic VAT Optimization

Supply chain restructuring reduces tax leakage, partial exemption methods optimize recoverable input tax, and VAT grouping simplifies filings for eligible entities. Our cross-border transaction guidance ensures international operations remain compliant while maximizing efficiency under UAE VAT laws.

Why Partner With Corcess?

As an FTA-approved Tax Agency, we combine regulatory authority with commercial pragmatism. From registration to audit defense, our experts deliver:

Guaranteed compliant filings with real-time law updates

Automated bookkeeping integration for error-proof records

Staff training programs to build internal compliance competency

📞 Contact Us Today – Protect your business from VAT penalties and optimize recoveries with our FTA-backed expertise.