Understanding VAT in UAE: Regulations, Exemptions, and Recent Changes Explained

VAT in UAE introduced on January 1, 2018 with a standard rate of 5%
VAT is imposed on taxable supplies and businesses must issue valid VAT invoices
UAE businesses must meet criteria for VAT registration if annual income exceeds AED 375,000
UAE likely to adopt e-invoices and enhance VAT rates over time
VAT is an indirect tax charged on supply of goods and services in UAE
VAT registration is mandatory for businesses with annual income exceeding AED 375,000
VAT-registered businesses collect tax on behalf of government and file VAT returns
UAE’s VAT system includes exemptions for specific supplies and zero-rate supplies
VAT plays an important role in UAE’s revenue generation system
VAT registration process in UAE is compulsory for individuals and enterprises meeting specific criteria

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.