UAE VAT Consultancy by partnered tax professionals
VAT treatment is not always obvious. Zero-rated or exempt? Reverse charge or not? Input VAT recoverable or blocked? Wrong answers cost you either uncollected output tax or FTA penalties. We provide clear, documented VAT opinions on specific transactions and structures, from AED 500 per query.
When You Need UAE VAT Consultancy
UAE VAT law under Federal Decree-Law No. 8 of 2017 covers over 200 specific scenarios with different VAT treatments. The standard rate is 5%, but zero-rating, exemption, out-of-scope treatment, and reverse charge all apply in specific circumstances. Getting the treatment wrong on a single contract or transaction type can create a systematic error that compounds across every invoice issued. VAT consultancy is most valuable before you start a new business activity, enter a new market, or sign a contract with an unusual payment or supply structure.
| Situation | Advisory Type |
|---|---|
| New business activity with unclear VAT treatment | Advisory to confirm correct output tax treatment |
| Exports of goods or services | Zero-rating conditions and documentation requirements |
| Import of services from overseas | Reverse charge assessment and reporting |
| Mixed-use business (taxable and exempt) | Partial exemption methodology |
| Designated zone transactions | VAT treatment of goods in and out of DZ |
| FTA audit query or dispute | Technical opinion and FTA correspondence support |
Source: Federal Decree-Law No. 8 of 2017. FTA Public Clarifications and Guides issued 2018 to 2026.
How a VAT Consultancy Engagement Works
Query Scoping
You describe the transaction, contract, or business activity you need clarity on. We confirm the scope of the opinion required, the applicable FTA guidance, and whether an FTA Private Clarification is recommended for additional protection. We provide a fixed fee for the opinion before starting.
Research and Opinion Preparation
We research the applicable UAE VAT law, FTA Public Clarifications, Cabinet Decisions, and international VAT principles where UAE-specific guidance is absent. We prepare a written opinion setting out the applicable rules, our conclusion on the VAT treatment, the conditions that must be met to apply it, and the documentation required to support the position.
Written Opinion Delivery
You receive a written VAT opinion in PDF format, referenced to the applicable legislation and FTA guidance. The opinion is your documented basis for applying the VAT treatment on the transaction. For recurring transactions, we provide implementation guidance so your accounting team applies the treatment consistently going forward.
Fixed Fee Per Engagement.
Fee confirmed before work starts. No hourly billing. You know the cost before you commit.
Transaction VAT Opinion
- ✓Single transaction or activity type
- ✓Written VAT treatment opinion
- ✓Legislative and FTA guidance references
- ✓Documentation requirements listed
- ✓Delivered within 3 business days
Structural VAT Advisory
- ✓Business model or contract structure review
- ✓Partial exemption methodology design
- ✓Designated zone transaction mapping
- ✓FTA Private Clarification application
- ✓Ongoing advisory retainer available
FTA penalty for incorrect VAT treatment discovered on audit: 15% fixed penalty plus 1% monthly on the tax difference. A AED 500 opinion on one transaction can prevent a AED 50,000 audit adjustment.
Why CalcUAE for VAT Consultancy
Written Opinions, Not Verbal Answers
Every opinion is delivered in writing with the applicable legislation cited. That document is your evidence of due diligence if the FTA ever questions the treatment.
partnered tax professionals
Opinions are prepared by partnered tax professionals, not generalist accountants. We can also make FTA Private Clarification applications on your behalf where the law is genuinely ambiguous.
Fixed Fee, Confirmed Upfront
No hourly billing. We confirm the fee before starting. For recurring transaction types, a one-time opinion covers the treatment going forward.
FTA Audit Support
If you receive an FTA audit query on a transaction we have opined on, we provide the technical response and FTA correspondence support as part of a follow-on engagement.
UAE VAT Consultancy: Common Questions
What is the difference between zero-rated and exempt supplies in UAE VAT?
Both zero-rated and exempt supplies result in 0% VAT charged to the customer. The critical difference is input VAT recovery. For zero-rated supplies (exports, international transport, certain healthcare and education), the supplier can fully recover input VAT on related costs. For exempt supplies (residential property, bare land, local passenger transport, certain financial services), the supplier cannot recover input VAT on related costs. Misclassifying a zero-rated supply as exempt means you lose input VAT recovery you are entitled to. Misclassifying an exempt supply as zero-rated means you incorrectly recover input VAT and face an FTA adjustment.
When does reverse charge VAT apply in the UAE?
Reverse charge applies when a UAE VAT-registered business receives services from an overseas supplier who is not registered for UAE VAT. The recipient must calculate the UAE VAT that would have applied, report it as output tax on their VAT return, and also claim it as input tax (if the services are used for taxable purposes). Reverse charge also applies to certain imports of goods through the EmaraTax customs integration. The net effect is zero for fully taxable businesses, but for businesses with exempt supplies, the output tax is a real cost.
What is partial exemption and when does it apply?
Partial exemption applies when a business makes both taxable supplies (standard or zero-rated) and exempt supplies. In this situation, input VAT on costs that relate directly to taxable supplies is fully recoverable, input VAT on costs that relate directly to exempt supplies is not recoverable, and input VAT on overhead costs must be apportioned between taxable and exempt use. The FTA standard method uses the ratio of taxable turnover to total turnover. Businesses can apply for approval to use a special method if the standard method does not reflect the actual use of inputs.
Can I get an official FTA ruling on a VAT question?
Yes. The FTA accepts Private Clarification applications on specific VAT questions where the correct treatment is genuinely uncertain. A Private Clarification from the FTA gives you legal certainty on the treatment and protects you from penalties if you apply it in good faith. We prepare and submit Private Clarification applications as part of our structural advisory service. The FTA typically responds within 40 business days.
What are the most common VAT errors FTA audits catch?
Based on FTA guidance and common audit patterns: incorrect zero-rating of domestic supplies (treating local sales as exports without meeting the conditions), failure to apply reverse charge on imported services, incorrect input VAT recovery on blocked items (entertainment, personal use vehicles), failure to account for VAT on deemed supplies (goods taken for personal use), and partial exemption calculation errors for mixed-use businesses. A VAT health check before an FTA audit is far cheaper than the penalties after.
Get a Written VAT Opinion on Your Transaction
WhatsApp us a description of the transaction or activity. We confirm the fee and turnaround time the same day. From AED 500.
WhatsApp +971 55 963 0486