The UAE introduced VAT in 2018, and compliance continues to be a core area of focus for the Federal Tax Authority (FTA). Incorrect filings, misclassifications, and noncompliance can lead to penalties. Frequent Errors: Overclaiming input VAT Incorrect treatment of exempt vs. zero-rated supplies Late submissions and payments Best Practices: Perform regular VAT reconciliations Review contract VAT clauses Implement system controls for correct coding Legal Reference: Federal Decree-Law No. 8 of 2017 on VAT and its amendments Cabinet Decision No. 52 of 2017 and its amendments Key Challenges: Applying reverse charge mechanisms VAT implications in cross-border services FTA audit readiness Why Engage an Accredited Tax Advisor? A tax advisor ensures robust compliance, interprets FTA updates, and mitigates risk of errors—protecting your company during audits. Conclusion: Sustainable VAT compliance requires proactive management and expertise. A professional advisor adds value by minimizing er...
Abdelrahman assists clients with consulting, compliance, due diligence and risk management for direct taxation, international tax, and transfer pricing, managing over $50B in assets across the UAE, GCC, and MENA. Abdelrahman is an approved UAE FTA Tax Agent (TAAN 20054466).