Value Added Tax (VAT)
1. General Definition Value Added Tax (VAT) is an indirect tax imposed on the import and supply of goods and services in the United Arab Emirates. It is calculated at a rate of 5% on most supplies. 2. Scope of…
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Registration of Sole Proprietorships for VAT Purposes
First: Definition of Sole Proprietorship A sole proprietorship is an entity wholly owned (100%) by a natural or legal person. A sole proprietorship does not have a separate legal personality from its owner and is considered part of that person…
VAT Treatment of the Real Estate Sector
VAT Treatment of the Real Estate Sector Definition of Real Estate Real estate includes land, buildings, structures, and engineering works permanently attached to the land. A real estate supply refers to the transfer of ownership, usage rights, or benefit to…
VAT Refund for UAE Nationals on New Home Construction
1. Introduction and Overview This system was established to enable UAE Nationals to reclaim the Value Added Tax (VAT) paid on the costs of constructing their new private residences. It applies exclusively to natural persons who are UAE citizens and…
Accounting Standards and their Relation to Corporate Tax
1. Legislative Background – The Federal Corporate Tax Law No. 47 of 2022 imposes a federal tax on the profits of companies and businesses in the UAE. – The law came into effect on June 1, 2023. This guide complements…
Registration of Natural Persons – Corporate Tax
1. Who is a Natural Person? A natural person refers to any living human being, whether residing in the UAE or abroad, who conducts business or business activities in their own name, such as: – Sole proprietors – Individual partners…