Value Added Tax - VAT

With the announcement by the Ministry of Finance that VAT will be implemented in the UAE by 1st January, 2018, companies are on a limited timeline to prepare for the first phase of VAT implementation in their business. Limitless Chartered Accountants tax department have already made substantial progress on preparing their tax administration systems and focusing its clients to develop their business in preparation for VAT.

Value Added Tax (VAT) is an indirect tax which is in place in more than 150 countries globally. United Arab Emirates in specific and GCC council in general has taken a decision to implement the VAT system with effect from January 1, 2018. The VAT rate has been agreed at rate of 5% on most of the goods and services. VAT will most likely impact every UAE business and with 1st January 2018 not being far, we will help you be prepared.

Examining the impacts of VAT in the UAE on a multi- dimensional basis – cash flow implications, accounting obligations, IT systems, governance procedures – making the necessary changes and testing the results is how we intend to equip businesses to be VAT ready.

How does VAT function ?

A VAT registered entity must charge Output VAT to their customers on the goods and services provided, recover Input VAT that has been suffered on expenses and purchases which relate to their taxable outputs and comply with the administrative and reporting requirements of the VAT regulations.

VAT will be charged at each level of the supply chain and will be collected by the businesses on behalf of the government. . In due course, VAT is borne by the end consumer. VAT concept is applicable on most local consumptions and services in UAE with some exceptions on basic food items, essential medicines and exports of goods and services which are zero rated supplies.


We provide VAT consultancy services with extensive experience, resources, and exposure to tax regimes of many countries to address your needs of adhering to local regulations as well as being profitable. Our team takes care of VAT, Excise Tax, international taxation, indirect taxes, guiding about local tax laws, and compliance of tax and VAT regulations in different countries.

  • VAT Consultancy Services
  • Excise Taxation Consultancy
  • Tax Planning Services
  • Filing Returns with VAT Authorities