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What Do I Need to File VAT and Corporate Tax in the UAE?
f you’re running a business in the UAE, understanding how to file VAT and Corporate Tax is essential to stay compliant with local laws and avoid penalties. Whether you’re a freelancer, a small business, or a large company, here’s what you need to know in simple terms.
Here’s what you’ll need to file VAT:
VAT Registration:
- VAT registration is mandatory if your business’s taxable income exceeds AED 375,000 per year.
- Voluntary registration is allowed if you earn more than AED 187,500.
- Register through the FTA portal to receive your Tax Registration Number (TRN).
Tax Invoices:
- You must issue VAT-compliant invoices for all taxable sales.
- Each invoice should include your TRN, customer details, VAT amount, and a breakdown of prices.
Record Keeping:
- Keep detailed records of all sales, purchases, expenses, and VAT invoices.
- These records must be stored for at least 5 years (15 years for real estate businesses).
VAT Returns:
- You usually need to file your VAT return every quarter (some file monthly).
- This is done online via the FTA portal by the 28th of the month following each tax period.
- You’ll calculate how much VAT you collected (output tax) versus what you paid on business expenses (input tax) and pay the difference.
VAT Payment:
- Pay the due amount online or through approved exchange houses.
- Late payments can result in penalties.
Filing Corporate Tax in the UAE
Corporate Tax is a new 9% tax on business profits over AED 375,000, introduced to support the UAE’s long-term economic goals. Here’s what’s needed:
Corporate Tax Registration:
- All businesses, including free zone companies and certain freelancers, must register with the FTA.
- Once registered, you’ll receive a Corporate Tax Registration Number.
Understanding Your Taxable Income:
- Corporate Tax is based on your annual net profit (as per your financial statements).
- The first AED 375,000 is taxed at 0%, and profits above that are taxed at 9%.
- Free zone businesses that meet special conditions may still benefit from a 0% rate on certain types of income.
Financial Statements:
- Prepare financial statements based on accepted UAE accounting standards.
- Some companies may need to have their statements audited, depending on size or legal requirements.
Corporate Tax Returns:
- You must file your return within 9 months after the end of your financial year.
- For example, if your financial year ends on December 31, your return is due by September 30 the following year.
Keeping Records:
- Maintain all relevant documents including income reports, expense records, contracts, and transfer pricing documentation (if applicable).
- These must be kept for 7 years in case of audit or review by the FTA.
How Can Choose UAE Help
Choose UAE makes VAT and Corporate Tax filing simple with straightforward plans tailored to your business needs, whether you’re a freelancer, startup, or established company. Our proven 5-star-rated team guides you through registration, return filing, and compliance—so you stay focused on growth, not paperwork. Book your FREE 30-minute accounting consultation today and get expert support every step of the way.
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