UAE VAT Filing – A quick overview:

Most businesses in the United Arab Emirates are required to file their VAT Quarterly (every 3 months).

However, for newly registered businesses, the challenge often lies in determining the exact start and end dates for that crucial first filing period.

Finding your VAT Period Start and End:

Unfortunately, the VAT period information will only become available in your FTA e-services account after the relevant period has passed. This can leave you somewhat in the dark about which period you’re supposed to be filing for.

So, how does the Federal Tax Authority (FTA) determine your first VAT period?

In the UAE, the commencement of your first quarterly VAT is based on your VAT registration date. For instance, if your VAT registration date falls within the month of June, your first VAT period will run from 1st June to 30th September. Importantly, this first period sets the pattern for your ongoing VAT filing periods.

Subsequent VAT Periods:

Following this example, your second VAT period will run from the 1st of October to the 31st of December.

It’s as simple as that. Your VAT registration date sets the pace for you future filing periods, ensuring a systematic approach to VAT compliance.

Should you seek further expert advice, clarity or guidance, do not hesitate to reach out to us. Our team is just a message away, ready to assist you in your VAT journey.

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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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