- The UAE applies a standard VAT rate of 5% to most goods and services, with input VAT recovery allowed for registered businesses.
- Zero-rated supplies (0% VAT) include exports, international transport, certain property, healthcare, and education; these allow input VAT recovery but require full compliance.
- Exempt supplies (e.g., most financial services, residential rent after first supply, bare land, local transport) are not subject to VAT and do not allow input VAT recovery.
- Proper VAT classification, documentation, and planning are essential for minimizing tax costs, improving cash flow, and ensuring audit readiness.
Source: nrdoshi.ae
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.
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