Capital Plus Your Strategic VAT Partner for Long-Term Business Confidence
If you think VAT accounting is just about submitting numbers, think again. One misstep can cost your business thousands in fines. That’s why 10,000+ companies across Dubai trust Capital Plus Auditing of Accounts. With over a decade of experience and a team of 15+ seasoned professionals, we don’t just handle VAT, we master it.
Every return we file is 100% compliant with FTA standards. No guesswork. No delays. No penalties. Whether you’re operating in a mainland company or one of 20+ free zones, we bring precision, control, and confidence to your VAT process. Looking for VAT accounting services that get it right the first time? You’ve just found them.
VAT: What is it?
Value Added Tax (VAT) was introduced in the UAE on January 1, 2018, at a standard rate of 5% on most goods and services. Aligned with GCC-wide efforts, VAT supports economic diversification and reduces reliance on oil revenue, helping fund public services and infrastructure. For businesses, VAT brought significant changes to financial compliance. Accurate registration, accounting, and timely return filing are now essential. That’s why working with professional VAT consultants in Dubai is crucial—ensuring compliance, minimizing liabilities, and avoiding costly penalties.
Why VAT Accounting Matters
Mandatory by Law
VAT compliance is not optional in the UAE. Proper accounting ensures you meet all Federal Tax Authority (FTA) requirements and avoid heavy penalties.
Simplifies Returns
Accurate VAT records make return filing easier, faster, and stress-free—eliminating last-minute errors and missed deadlines.
Enables Growth
A solid VAT accounting system supports scalability and smooth financial operations as your business expands.
Ensures Full Compliance
Proper VAT tracking acts as a built-in checklist, helping you meet every tax obligation without oversight.
Audit-Ready Anytime
Well-maintained records simplify the audit process and reduce the pressure of unexpected FTA inspections.
Adapts to Changes
Up-to-date VAT accounting helps you stay aligned with new tax rules and take advantage of incentives or exemptions.
Supports National Revenue
Your compliance contributes to the UAE’s broader economic development by supporting non-oil revenue streams.
Minimizes Risk
Timely, accurate accounting lowers the risk of penalties—giving you confidence and peace of mind.
VAT Accounting Procedure in Dubai, UAE
Here’s how VAT accounting works in Dubai, explained simply and clearly:
Register for VAT
If your business’s taxable supplies exceed AED 375,000 annually, you need to register for VAT. This is done online through the Federal Tax Authority (FTA) portal. Provide your trade license, financial records, and other required documents to get your Tax Registration Number (TRN).
Issue Proper Invoices
Make sure all your invoices comply with VAT rules. Include the supplier’s name, address, TRN, the invoice date, unique number, description of goods/services, their quantity, total value, the 5% VAT rate, and the VAT amount.
File Your VAT Returns
Every quarter (or monthly for larger businesses), log into the FTA portal and file your VAT return. Provide details of sales, purchases, VAT collected, VAT paid, and any adjustments. Submit it on time to avoid penalties.
Make Payments
Pay your VAT liability through the FTA portal using an e-Dirham card or other authorized payment methods. Ensure your payments are on time to stay compliant.
Claim Refunds
If you’ve paid more VAT (Input VAT) than you’ve collected (Output VAT), you can apply for a refund. Submit the request through the FTA portal with all the supporting documents and wait for approval.
Adjust for Errors or Changes
If goods are returned, payments go bad, or you made a mistake in your previous returns, you can adjust these in your next VAT filing. Keep track of these changes to ensure your records are always accurate.
Stay Organized
Hold onto all your invoices, receipts, contracts, and VAT records for at least five years. This not only keeps you prepared for audits but also makes tax time stress-free.
Be Ready for VAT Audits
The FTA can audit your business at any time. Keep everything well-documented and organized, so you can provide what’s needed quickly and confidently.
Record Every Transaction
Keep clear and accurate records of:
- Sales and the VAT you collect (Output VAT).
- Purchases and the VAT you’ve paid (Input VAT).
- Any zero-rated or exempt transactions.
- Notes for adjustments like returns or discounts.
- Import and export documents.
Calculate VAT Payable
Figure out how much VAT you owe by subtracting Input VAT (the VAT you’ve paid) from Output VAT (the VAT you’ve collected). For example:
- VAT collected on sales: AED 50,000
- VAT paid on purchases: AED 30,000
- VAT to pay: AED 20,000
Essential Documents for VAT Accounting in the UAE
Sales Invoices and Receipts
- VAT-compliant invoices with business name, TRN, invoice date, unique number, VAT rate, and amount.
- Credit/debit notes for returns or adjustments.
- Clear records of zero-rated and exempt sales.
Purchase Invoices
- Supplier invoices showing TRN, VAT amount, and purchase details.
- Categorized as recoverable, non-recoverable, or VAT-exempt.
VAT Return Filings
- Copies of all filed VAT returns and supporting documents.
- Submission proof like FTA receipts or email confirmations.
VAT Account Summary
- Breakdown of Output VAT (sales) and Input VAT (purchases).
- Regular reconciliation with accounting records.
Import & Export Records
- Bills of entry and VAT payment receipts for imports.
- Shipping documents and export declarations for zero-rated exports.
Bank Statements
- Reconciled with VAT payments and refunds.
- Linked to FTA transactions for transparency.
What Our Clients Say
Frequently Asked Questions
Yes, UAE law mandates businesses to retain VAT records for at least five years to meet Federal Tax Authority (FTA) compliance requirements.
The Federal Tax Authority (FTA) is responsible for collecting VAT from registered businesses and ensuring compliance with UAE tax regulations.
A VAT accountant manages VAT compliance by handling transactions, preparing accurate VAT returns, maintaining records, and ensuring adherence to tax laws and regulations.
VAT on accounting services in the UAE is applied at the standard rate of 5%, as per Federal Tax Authority guidelines.
Yes, VAT-compliant accounting software can be customized to generate VAT 201 reports aligned with Federal Tax Authority requirements.
The VAT paid to the clearing agent is recorded as input VAT, which can be reclaimed by the business if it qualifies under FTA guidelines.
Capital Plus Auditing of Accounts provides services in following free zone
