Whether a voluntary VAT registered business, mandatory VAT-registered company or an entity registered as a tax/VAT group, all have to deal with VAT filing. It can’t be helped if you are indulged in taxable activities as per FTA. Being VAT compliant is vitally important for any business, especially if they don’t want to attract unnecessary penalties and hassles. And timely and appropriately conducted VAT return filing keeps you VAT ready and compliant. VAT return filing is part and parcel for any VAT-registered company in the UAE aiming to report the tax authorities (FTA) VAT collected and paid by the entity to the tax authority during the given specific time period. Usually filed quarterly, VAT return filing communicates how much VAT is to be paid or repaid by the tax authorities and allows businesses to pursue the correct financial path.

Under the new corporate taxes, starting from June 2023, the UAE will impose a 9% corporate tax rate on all business activities except the extraction of natural resources. The 9% rate will be applicable if the company’s income exceeds Dh 375,000. The new corporate tax decision comes as the UAE aims to modernize its economy and adapt to international taxation norms. The tax on corporate profits comes as the UAE administration seeks to help large economies close tax avoidance loopholes.