End-to-End VAT Services for UAE Businesses
From registration to quarterly filing, Aquarius manages your VAT compliance with zero stress and full transparency.
Get a comprehensive understanding of our services and solutions with our informative brochure.
VAT Services in the UAE
Stay VAT-compliant, avoid penalties, and streamline your filings — Aquarius makes it simple.
Value Added Tax (VAT) has been in effect in the UAE since January 1, 2018. Charged at 5%, it applies to most goods and services and affects nearly every business operating in the country. Whether you’re newly registering or need help with filing, Aquarius provides end-to-end VAT solutions to keep you compliant and penalty-free.
What Makes VAT in the UAE Unique?
Unlike some global jurisdictions, the UAE’s VAT regime has sector-specific nuances and strict documentation requirements. Freezone companies, for example, may deal with zero-rated transactions for exports or mixed supplies depending on the zone (designated vs non-designated). Misclassifying a supply, even unintentionally, can lead to steep penalties.
Many businesses also overlook reverse charge mechanisms when importing goods or services, which can distort their input tax recoveries and increase audit risk.
Additionally, the FTA now requires digital records and audit trails. Inaccurate bookkeeping or unstructured files are no longer tolerable under recent enforcement guidelines.
VAT Registration & Deregistration
We manage your complete VAT lifecycle with the Federal Tax Authority (FTA), from initial assessment of registration thresholds (AED 375,000 mandatory / AED 187,500 voluntary) to submitting required documentation via the EmaraTax portal. For deregistration, we ensure compliance with conditions, final return submission, and proper closure to avoid future penalties or audits.
VAT Return Filing
Our team prepares and files your quarterly or monthly VAT returns with precision. We reconcile your sales, purchases, and zero-rated or exempt supplies in real time, reducing input mismatches and reclaim delays. We also handle adjustments, corrections, and late filing implications while ensuring full FTA compliance.
VAT Return Filing
Our team prepares and files your quarterly or monthly VAT returns with precision. We reconcile your sales, purchases, and zero-rated or exempt supplies in real time, reducing input mismatches and reclaim delays. We also handle adjustments, corrections, and late filing implications while ensuring full FTA compliance.
VAT Recordkeeping & Reconciliations
FTA requires VAT records to be maintained for at least 5 years (15 for real estate). We structure your invoice logs, tax invoices, supply contracts, credit notes, and ledgers in a format that withstands audit review. Our reconciliation process ensures your internal accounts match VAT submissions, eliminating discrepancies.
VAT Compliance Reviews
We perform in-depth compliance audits to assess the accuracy of VAT application across your business transactions. This includes checking tax invoices, contract clauses, place-of-supply rules, and exemption justifications. Our reviews reduce the risk of fines by proactively identifying errors or inconsistencies before the FTA does.
Input VAT Optimization
Our specialists help you maximize recoverable input VAT while staying within legal limits. We categorize eligible, partially eligible, and blocked expenses, and advise on apportionment rules for businesses with mixed supplies (e.g., educational institutions, healthcare, real estate leasing). This ensures optimal tax positioning and avoids under- or over-claiming.
Reverse Charge Mechanism (RCM) Handling
Importing services (e.g., from consultants or software providers) or goods? You may be liable to self-account for VAT under the Reverse Charge Mechanism. We ensure proper entries in your VAT return, classify imported items correctly, and maintain mandatory RCM documentation to ensure clean audits and avoid penalties.
FTA Audit & Reconsideration Support
Facing a VAT audit or penalty notice? We step in to assist with document collation, FTA correspondence, audit file preparation, and representation during the audit process. In the case of fines, we handle reconsideration requests by submitting legal justifications and rectifying historical filing errors, often leading to reduced or waived penalties.
VAT Treatment for Freezones
Operating in a Freezone doesn’t always mean you're VAT exempt. We advise on correct VAT treatment for businesses in designated and non-designated zones such as DMCC, JAFZA, DAFZA, and IFZA. Our guidance ensures proper VAT handling of local vs cross-border supplies, avoiding common errors in inter-zone transactions.
Why Choose Aquarius?
FAQs
Is VAT applicable to Freezone companies in the UAE?
Yes, especially if you deal with the Mainland or import/export goods. Treatment depends on whether your Freezone is designated or not.
What happens if my business files VAT late in the UAE?
The FTA imposes automatic penalties. Aquarius ensures your deadlines are tracked and filings are accurate.
Can I correct a previously filed VAT return?
Yes. If errors are found, you can file a voluntary disclosure. We help prepare and submit it professionally to avoid escalations.
How do I know if my invoices are VAT-compliant?
We audit your invoice formats to ensure they include all required fields, like TRN, breakdowns, and accurate tax points.
