Call for Assistance: +971 503506152
Call for Assistance: +971 503506152
Do export of services count towards the VAT registration threshold in the UAE?
May 30, 2023

Yes, in the United Arab Emirates the export of services is considered to be Zero Rated, which means that they are still subject to taxation but at a rate of 0%. Consequently, when determining your VAT registration threshold, they are included in the calculation since they are still considered to be taxable supplies.

Even if a mainland company generates 100% of its revenue from outside the UAE, it is still required to register for VAT and file returns. However, in this scenario, there is no VAT payment necessary since all the revenue is Zero Rated.

It is important to note that if you operate through a Free Zone, your circumstances may differ. Therefore, we recommend contacting us for advice in this area.

We are here to assist you. Moreover, our team of professionals can provide guidance and support in navigating the complexities of VAT regulations, ensuring compliance while optimizing your tax position. For expert tax advice tailored to your needs in the UAE, reach out to us today for the best solutions.

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Theta 7 - An Online Accounting Firm in the United Arab Emirates

Spondoo, a leading online accounting firm, has launched Theta 7, its new branch in the United Arab Emirates. Theta 7 is an online accounting firm that offers a range of accounting services to businesses in the UAE, leveraging technology to offer accurate, timely and cost-effective solutions. With its launch in 2023, Theta 7 is set to revolutionise the accounting industry in the UAE.

Taking my clients out for drinks or dinner? How it works in the eyes of the UAE Federal Tax Authority

Most jurisdictions now restrict or disallow client entertainment expenses, and the UAE is no exception to this. When you take a client out for dinner or drinks, or even paying for a joint golfing trip, this is client entertainment. You can indeed pay for this type of expense via the business, and it is still legitimate to do so.

When considering tax rate thresholds, how is UAE corporate tax calculated?

If a company has a taxable profit of 400,000 AED, the calculation will be (375,000 AED x 0%) + (25,000 AED x 9%) giving a tax bill for the period of 2,250 AED.

Is Dubai Truly Tax-Free? 

Simply put - Yes and no: There is no income tax on a person’s salary, wages, bank interest, dividends, or capital gains in Dubai, however, from June 2023 corporation tax was introduced

Can I Avoid Corporation tax by paying all my profits as a salary in the UAE?

Our answer is – it is not that simple, and the FTA (Federal Tax Authority) are too smart for that one.

Are Free Zone companies subject to tax in the United Arab Emirates (UAE)?

It is important to note that Free Zone companies are not exempt from corporation tax in the UAE, but they may qualify for a 0% tax rate. This is an important distinction as all Free Zone companies be required to register for corporation tax with the Federal Tax Authority (FTA) and file returns at least annually.
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Information provided on the site is merely guidance that may change in line with UAE law and regulations. Users must not consider this to be financial advice or their sole resource when making any financial decision. Theta7 is a trading name for THETA 7 Accounting & Bookkeeping L.L.C, an authorised & licensed accounting firm under the Ministry of Economy and the Federal Tax Authority of the United Arab Emirates.
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