Since its introduction, Value Added Tax (VAT) has been a core compliance challenge in the UAE. Incorrect registration timing, inaccurate filing, or missing deadlines expose businesses to severe penalties—the fine for late VAT registration alone is AED 10,000. FrankDigit Accounting Services is an FTA-Approved Tax Agent specializing in managing the entire VAT lifecycle for Dubai businesses, from strategic registration advice to guaranteed, error-free quarterly return filing via the EmaraTax portal.
Our service provides the ultimate defense against compliance risk, ensuring full adherence to the Federal Tax Authority (FTA) regulations. We deliver peace of mind through Confidentiality, Transparency, and Integrity (CTI), ensuring your Tax Registration Number (TRN) is secured and your Input VAT is maximized, keeping your business fully compliant.
Value Added Tax (VAT) is charged at a standard rate of 5% on most goods and services. Businesses in the UAE must constantly monitor their turnover against two critical thresholds:
- Mandatory Registration: Required if your taxable supplies and imports exceed AED 375,000 in the last 12 months or are expected to exceed this in the next 30 days.
- Voluntary Registration: Available if your taxable supplies or expenses exceed AED 187,500 (often advisable for new businesses incurring high initial VAT on expenses).
Once registered, compliance is mandatory, including the preparation and submission of the VAT Return (Form VAT 201) within 28 days of the end of the tax period via the EmaraTax portal.
We handle all aspects of the VAT journey, transforming a compliance burden into a structured, optimized process.
| Deliverable | How FrankDigit Delivers |
|---|---|
|
VAT Eligibility & Registration |
Proactive monitoring of thresholds and expert submission of mandatory/voluntary application to the FTA to obtain your TRN. |
|
Quarterly VAT Return Filing |
Accurate preparation and electronic filing of the VAT 201 return on the EmaraTax portal within the 28-day deadline. |
|
Input Tax Recovery & Advisory |
Expert review of all purchases to maximize eligible Input VAT claims, legally minimizing your VAT liability. |
|
VAT-Compliant Invoicing |
Setting up your accounting software (Zoho/Xero) to generate invoices that meet all FTA requirements (TRN, 5% VAT rate, correct format). |
|
VAT Health Check & Audits |
Periodic internal reviews of your records and transactions to preemptively identify errors, guaranteeing audit-readiness. |
The complexity of VAT extends far beyond basic sales, requiring nuanced advisory to ensure long-term compliance and financial safety.
We provide critical advice on VAT treatment in specific situations, such as transactions within Designated Zones (Free Zones) and the correct application of Zero-Rated (0%) versus Exempt categories. This is vital for businesses involved in international trade (exports, services supplied outside UAE) to ensure the proper VAT application is used, which directly impacts your filing and audit exposure.
The UAE has a multi-tiered system of penalties for VAT non-compliance. Late VAT Return filing incurs a fixed fine (AED 1,000 for the first time, escalating to AED 2,000). Crucially, late VAT payment carries escalating penalties starting immediately and reaching up to 300% of the unpaid tax. Our systematic filing and payment management process is designed to eliminate these penalties and maintain your company’s excellent standing with the FTA.
We install a robust, end-to-end VAT system that ensures compliance from the first day of business.
- Decode (Compliance Strategy): We assess your turnover and business activities to determine the optimal registration type (Mandatory or Voluntary) and configure your accounts to correctly track Output and Input Tax.
- Simplify (Registration & Setup): We prepare all required documentation (Trade License, Financial Records, ID) and handle the full VAT registration process, securing your TRN and setting your preferred reporting cycle.
- Automate (Filing & Review): We perform monthly bookkeeping review, prepare the quarterly VAT 201 return, submit the filing via EmaraTax, and advise on any refund claims or voluntary disclosures needed.
Don’t let VAT penalties drain your resources. Secure expert registration and guarantee timely filing with an FTA-Approved Tax Agent.
📞 Contact FrankDigit Accounting Services today for complete VAT compliance and advisory.