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The UAE introduced VAT in 2018, requiring e-commerce businesses to register if taxable supplies exceed AED 375,000, with voluntary registration available from AED 187,500 for input VAT recovery.
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VAT application depends on the place of supply: domestic sales are taxed at 5%, exports can be zero-rated with proper documentation, and services are taxed based on customer location.
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Imports incur 5% VAT based on customs value; VAT-registered businesses may defer payment and recover input tax, while reverse charge applies for certain overseas purchases.
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Selling through agents involves different VAT treatments depending on whether the agent is disclosed or undisclosed, affecting invoicing and tax reporting responsibilities for both parties involved.
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