Fees for landlords and investors in Dubai , VAT for businesses and properties and housing charges.
VAT registration and declarations
Businesses with a turnover of more than USD 90,000 (AED 375,000) for taxable goods or services in a year must register for VAT. Companies with a turnover of more than USD 45,500 (AED 187,500) per year can choose whether or not to register for VAT. Large companies can ask their suppliers for a tax registration number (TRN); small businesses often choose the option of registering for VAT.
VAT returns must be filed within 28 days of the end of the tax period that applies to the business.
The standard fiscal period is:
• Quarterly for companies with an annual turnover of less than AED 150 million
• Monthly for companies with an annual turnover of 150 million AED or more
Businesses that collect VAT from their customers which is then remitted to the government can reclaim the VAT they pay to suppliers. This is to avoid VAT being applied multiple times to a given good or service.
Dubai taxes and fees
The UAE has always attracted top talent and investors due to its tax-free status. Although there is no tax on personal income, wages, capital gains and inheritance, a value added tax (VAT) was introduced in 2018, after the price of oil has put pressure on government coffers. A standard rate of 5% VAT applies to most products, goods and services in the country, which has led to a slight increase in the cost of living.
The amount of VAT is usually included in the asking price for goods and services – so the price that appears on the label is the price to pay.
Apart from VAT, the governments of the various emirates have always imposed fees for various services, such as a council tax, property transfer fee, registration fee and knowledge and innovation fee.
At the national level, the UAE also charges customs duty on so-called “immoral” products such as alcohol, tobacco, soft drinks and energy drinks.
