Business: Any activity that is practiced regularly or continuously, such as industrial, commercial, artisanal, professional, etc.- Taxable Supply: A supply of Goods or Services for a Consideration by a Person conducting Business in the State, and does not include Exempt Supply but includes 5% or 0% supply and also import value, if they are subject to supply in the State.
- Mandatory Registration: Business to register within 30 days, if Value of Taxable Supplies is > AED 375,000 in last or expect in future 1 year
- Voluntary Registration: Business to register within 30 days, if value of Taxable supplies or Taxable Expenditures > AED 187,500 in past 12 months
- Input Tax is VAT paid on Purchase of goods and services including import
- Output Tax is VAT charged on Supply of goods and services in the State
- Input Tax Credit – ITC is VAT paid on purchases is typically ITC
- VAT group Registration is Single registration for all Related Entities
- Reverse Charge is VAT remitted by Purchaser/Service receiver
- VAT remittance (Net of Output and Input VAT to be remitted by the Seller)
- VAT reporting (Details of Purchases and Sales along with VAT details to be reported to Government)
- Invoice-based VAT is Levying VAT on Taxable Invoice value, Irrespective of payment of invoices or whenever payment is received, VAT is calculated and paid
- VAT Exempt (Goods and services are exempted from levying VAT by the supplier
- VAT Types (Standard Rate VAT - 5%; ZERO-rated VAT – 0%; VAT Exempt)
- Fee-based income in case of Financial Service - VAT is applicable but some are recoverable but some are not
- Margin-based income in case of Financial Services - VAT is exempt
