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VAT and excise tax services UAE — registration, return filing, compliance review, voluntary disclosure, reconsideration and UAE Nationals VAT refund by licensed FTA Tax Agent — Abdelhamid & Co Sharjah

VAT and excise tax services in the UAE — licensed FTA Tax Agent

VAT and excise tax services in the UAE are essential for every business registered with the Federal Tax Authority (FTA). At Abdelhamid & Co. Certified Public Accountants & Auditors L L C SP, we are licensed by the UAE Ministry of Economy (Local Auditors Record No. LC0106-01) and registered as a licensed FTA Tax Agent (TAN: 30003958 | TAAN: 20033908). We manage all VAT and Excise Tax dealings with the FTA directly via the EmaraTax portal on your behalf.

Our VAT and Excise Tax services are governed by Federal Decree-Law No. 8 of 2017 on VAT, Federal Decree-Law No. 7 of 2017 on Excise Tax, Federal Decree-Law No. 28 of 2022 on Tax Procedures, and the penalty framework under Cabinet Decision No. 40 of 2017 as amended by Cabinet Decision No. 129 of 2025 (effective 14 April 2026). Our services also integrate with our corporate tax services, audit services, and accounting services. Learn more about our firm and our team.

What are VAT and excise tax in the UAE?

UAE VAT is a 5% indirect tax on the supply of most goods and services, introduced on 1 January 2018 under Federal Decree-Law No. 8 of 2017. Excise Tax applies to specific goods harmful to health or the environment — including tobacco (100%), energy drinks (100%), carbonated drinks (50%), and sweetened drinks (50%) — under Federal Decree-Law No. 7 of 2017. Both taxes are administered by the FTA and filed via EmaraTax.

Key facts — VAT and excise tax UAE

VAT rate: 5% (standard) | 0% (zero-rated) | Exempt
VAT law: Federal Decree-Law No. 8 of 2017
Excise Tax law: Federal Decree-Law No. 7 of 2017
Tax Procedures: Federal Decree-Law No. 28 of 2022
Mandatory VAT registration: AED 375,000 taxable supplies
Voluntary VAT registration: AED 187,500 taxable supplies
Penalty framework: Cabinet Decision No. 40/2017 as amended by CD 129/2025 (effective 14 April 2026)

Our VAT and excise tax services

We offer a comprehensive suite of VAT and Excise Tax services:

How we deliver VAT and excise tax services

1. VAT and excise tax registration

We assess your registration obligations under Federal Decree-Law No. 8 of 2017, prepare and submit applications via EmaraTax, and ensure your TRN is issued correctly. We handle mandatory (AED 375,000 threshold), voluntary (AED 187,500 threshold), Excise Tax, and VAT group registration.

2. Return preparation and filing

We reconcile your accounting records to return figures, apply the correct VAT treatment to each supply category, prepare accurate returns, and file on time via EmaraTax. Late filing penalties under Cabinet Decision No. 40 of 2017 are AED 1,000 for the first offence and AED 2,000 for subsequent offences.

3. Compliance review and error detection

We conduct systematic compliance reviews of filed returns, input VAT recovery, tax invoices, import records, and supporting documentation to identify errors before an FTA audit is triggered. Our review covers standard-rated, zero-rated, and exempt supplies, reverse charge mechanism transactions, and partial exemption calculations.

4. Voluntary disclosure and penalty management

When errors are identified, we prepare and submit voluntary disclosures via EmaraTax before an FTA audit notification is issued. Under Cabinet Decision No. 129 of 2025 (effective 14 April 2026), the penalty for voluntary disclosure before audit is 1% per month on the underpaid tax, compared to a 15% fixed penalty plus 1% monthly after audit.

5. Tax dispute resolution and reconsideration

We represent you through the full 4-stage UAE tax dispute process: FTA Reconsideration (20 business days) → Tax Disputes Resolution Committee (TDRC) → Federal Court of Appeal → Supreme Court. We draft all submissions and manage deadlines throughout.

Our VAT and excise tax methodology

  • Step 1 — Assessment and registration: We review your business activities, determine VAT and Excise Tax registration obligations, confirm the correct threshold applies, and register via EmaraTax before any penalty exposure arises.
  • Step 2 — Transaction review and classification: We analyse each supply category in your accounting records — standard-rated (5%), zero-rated (0%), and exempt — and verify input VAT recovery eligibility to ensure the return reflects the correct taxable position.
  • Step 3 — Return preparation and reconciliation: We reconcile your accounting records to the VAT return figures, cross-check output tax and input tax figures, prepare the complete return, and file it on time via EmaraTax as your registered Tax Agent.
  • Step 4 — Compliance review: After filing, we conduct a post-filing compliance review covering tax invoices, credit notes, import VAT, reverse charge mechanism, partial exemption calculations, and supporting records to identify any errors that should be corrected via voluntary disclosure.
  • Step 5 — Correction and dispute support: Where errors are found, we prepare and submit voluntary disclosures via EmaraTax and represent you in all FTA correspondence, TDRC proceedings, and court appeals if required under Federal Decree-Law No. 28 of 2022.

Why choose Abdelhamid & Co for VAT and excise tax in the UAE?

  • Licensed by the UAE Ministry of Economy — Local Auditors Record No. LC0106-01
  • Licensed FTA Tax Agent — TAN: 30003958 | TAAN: 20033908
  • UAECA — UAE Certified Accountant
  • IACPA — International Association of Certified Public Accountants
  • EAAA Fellow — Registration No. 124
  • IASCA Fellow — Registration No. 1361
  • Direct EmaraTax access as registered FTA Tax Agent
  • Up-to-date with Cabinet Decision No. 129/2025 penalty framework (effective 14 April 2026)
  • Bilingual team — Arabic and English
  • Transparent, fixed-fee engagements

Frequently asked questions — VAT and excise tax UAE

What is the mandatory VAT registration threshold in the UAE?

AED 375,000 in taxable supplies (or taxable expenses) over the previous 12 months, or expected in the next 30 days. Voluntary registration is available at AED 187,500. We handle the full registration process via EmaraTax, including mandatory, voluntary, and Excise Tax registration.

How often must VAT returns be filed in the UAE?

Standard VAT returns are filed quarterly (every 3 months). Some high-turnover businesses may be assigned monthly VAT filing periods by the FTA. Excise Tax returns are filed monthly. Late filing penalties are AED 1,000 for the first offence and AED 2,000 for subsequent offences under Cabinet Decision No. 40 of 2017.

What are the penalties for VAT errors in the UAE?

Under Cabinet Decision No. 129 of 2025 (effective 14 April 2026), a voluntary disclosure submitted before an FTA audit notification carries a 1% monthly penalty on the underpaid tax. After audit notification, the penalty increases to 15% fixed plus 1% per month. Our compliance review identifies errors early to minimise penalty exposure.

Can you represent us before the FTA as a Tax Agent?

Yes. As a licensed FTA Tax Agent (TAN: 30003958 | TAAN: 20033908), we can represent your business before the FTA for all VAT and Excise Tax matters including registration, return filing, voluntary disclosure, reconsideration requests, and TDRC proceedings via EmaraTax.

What is the difference between voluntary disclosure before and after FTA audit?

A voluntary disclosure submitted before the FTA issues an audit notification carries a 1% monthly penalty on underpaid tax — significantly lower than the 15% fixed penalty plus 1% monthly that applies after an audit notification is received under Cabinet Decision No. 129 of 2025. Acting proactively is always substantially cheaper.

Can UAE Nationals claim a VAT refund on building a new home?

Yes. UAE Nationals are entitled to a full 5% VAT refund on the construction of a new private residence (not a commercial building). The refund application must be submitted within 12 months of building completion. We handle the complete VAT refund application via EmaraTax, including all supporting documentation.

What goods are subject to UAE excise tax?

Under Federal Decree-Law No. 7 of 2017 on Excise Tax, the following goods are subject to excise tax: tobacco and tobacco products at 100%, electronic smoking devices and liquids at 100%, energy drinks at 100%, carbonated drinks at 50%, and sweetened drinks (added sugar or sweetener) at 50%. Importers, producers, and stockpilers of excisable goods must register and file monthly returns.

  • Corporate Tax Services — end-to-end corporate tax compliance under Federal Decree-Law No. 47 of 2022 by licensed FTA Tax Agent.
  • Audit & Assurance Services — ISA-based external and internal audit services supporting VAT-compliant financial statements.
  • Accounting Services — IFRS-compliant bookkeeping ensuring accurate VAT account records for return preparation.

Contact us for VAT and excise tax services in the UAE

📞 Phone / WhatsApp: +971 50 794 8028
📞 Direct: +971 065 289 414
🌐 Office: Sharjah, Al Qasimia, Omran Tower, Office 302

Abdelhamid & Co. Certified Public Accountants & Auditors L L C SP — Licensed by the UAE Ministry of Economy (LC0106-01) | Licensed FTA Tax Agent (TAN: 30003958 | TAAN: 20033908)

Abdelhamid M. Abdelhamid — Partner & Managing Director
Abdelhamid & Co. Certified Public Accountants & Auditors L L C SP
UAECA | IACPA | EAAA Fellow No. 124 | IASCA Fellow No. 1361
UAE Ministry of Economy — LC0106-01 | Working-Auditors Record No. 956
FTA Tax Agent — TAN: 30003958 | TAAN: 20033908
LinkedIn

Last reviewed: April 2026. Content reflects UAE law at date of review.


Contact us

Timing: Sat–Thu: 8AM–6PM 

Mobile\WhatsApp: 0507948028

Phone: 065610040

Email: info@abdelhamidcpa.com

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