Quick answer: Abdelhamid & Co CPA provides end-to-end VAT and Excise Tax compliance services in the UAE — covering Tax Agency representation, registration, quarterly return filing, voluntary disclosure, reconsideration requests, and refund claims — under Federal Decree-Law No. 8 of 2017 on Value Added Tax, Federal Decree-Law No. 7 of 2017 on Excise Tax, and Federal Decree-Law No. 28 of 2022 on Tax Procedures, with late-filing and late-payment penalties governed by Cabinet Decision No. 129 of 2025. VAT applies at 5% on most goods and services; mandatory registration is required when taxable supplies exceed AED 375,000 per annum. Excise Tax applies at 100% on tobacco and energy drinks, and 50% on carbonated drinks, alcohol, and sweetened beverages. Abdelhamid & Co Certified Public Accountants & Auditors LLC is fully authorised to act before the Federal Tax Authority: Ministry of Economy licence LC0106-01 | Licensed Auditor Registry No. 956 | Tax Agent TAN: 30003958 | Tax Agency TAAN: 20033908 | EAAA Fellow No. 124 | IASCA Fellow No. 1361 | over 25 years of professional experience. See our full services overview or learn about our firm. The UAE introduced Value Added Tax on 1 January 2018 at a standard rate of 5% on most goods and services, with targeted zero-rating (exports, international transport, qualifying healthcare and education) and exemptions (bare land, residential resale, most financial services). Excise Tax followed in 2017 on specific harmful goods. Both taxes are administered by the Federal Tax Authority through the EmaraTax portal. Every VAT-registered business must file periodic returns and pay the net VAT by the 28th day of the month following the tax period. Non-compliance generates penalties under Cabinet Decision No. 129 of 2025 — a 2% immediate surcharge on unpaid tax at the due date, rising to 4% per month on the remaining balance, plus flat late-filing penalties. As a licensed Tax Agency (TAAN: 20033908) and Tax Agent (TAN: 30003958), we manage the full compliance cycle on your behalf and represent you before the FTA in all disputes and audits. We act as your licensed Tax Agent and Tax Agency before the Federal Tax Authority — submitting returns, responding to queries, managing assessments, and representing you in all FTA correspondence, audit meetings, and reconsideration hearings. A formal power of attorney is registered on EmaraTax, giving us legal authority to act on your behalf. Our Tax Agent Number (TAN: 30003958) and Tax Agency Number (TAAN: 20033908) are on file with the FTA — verifiable at tax.gov.ae. See our dedicated Tax Agency Service page for full details. A structured diagnostic of your VAT and Excise Tax position covering: supply classification (standard-rated, zero-rated, exempt), input tax eligibility under Articles 54–56 of the VAT Law, partial exemption calculations, reverse-charge obligations on imported services, and Excise Tax liability for designated-zone movements. We deliver a written report ranking findings by penalty exposure under Cabinet Decision No. 129 of 2025 and providing prioritised remediation steps. We manage the complete FTA registration process: confirming threshold satisfaction (AED 375,000 mandatory / AED 187,500 voluntary), preparing the EmaraTax application, uploading supporting documents, and obtaining your Tax Registration Number (TRN). Tax Group registration — where multiple related entities elect to file as a single taxable person — is also within our scope. For de-registration, we verify all legal conditions are met and no outstanding returns or liabilities exist before submission, avoiding the AED 10,000 late de-registration penalty under Cabinet Decision No. 40 of 2017. We prepare and file your quarterly (or monthly) VAT returns by the 28th day following the tax period-end, and your Excise Tax returns covering imports, production, stockpiling, and designated-zone releases. Our process includes: reconciling VAT on sales and purchases against accounting ledgers, verifying input tax claims against original tax invoices per FTA VATP036, computing the net payable or refundable amount, and electronically submitting via EmaraTax. Late filing attracts AED 1,000 (first offence) and AED 2,000 (repeat within 24 months) under Cabinet Decision No. 129 of 2025, in addition to 2%+4% monthly surcharges on unpaid tax. Where the FTA issues a tax assessment or penalty, Article 43 of Federal Decree-Law No. 28 of 2022 allows 20 working days for a formal reconsideration request. Missing this window forfeits the right to object permanently. We prepare the legal grounds, gather supporting evidence, draft the written submission, and present your case to the FTA Reconsideration Committee. If reconsideration is unsuccessful, we advise on Tax Dispute Resolution Committee (TDRC) escalation and, where appropriate, Federal Court proceedings. Where historical errors are identified — under-declared output tax, over-claimed input tax, or incorrect Excise Tax calculations — Article 10 of Federal Decree-Law No. 28 of 2022 allows voluntary correction. Proactive disclosure before the FTA opens an audit eliminates the 50% first-detection penalty and replaces it with the lower voluntary disclosure rate under Cabinet Decision No. 129 of 2025. We quantify the corrected liability, compute accrued surcharges, draft the disclosure form, and coordinate payment to achieve maximum penalty mitigation. Once the FTA initiates an audit, voluntary disclosure rates no longer apply. UAE nationals building a new primary residence on personally-owned land are entitled to a VAT refund on eligible construction costs under the New Residence VAT Refund Scheme. We manage the full claim cycle: verifying eligibility (UAE national, first-time owner-build, personal use), collating contractor invoices and completion certificates, filing the refund application within the prescribed timeline, and following up with the FTA through to payment. Your annual taxable turnover is approaching or has exceeded AED 375,000 and you have not yet registered for VAT with the FTA. Failure to register within 30 days of crossing the mandatory threshold incurs an AED 10,000 penalty under Cabinet Decision No. 40 of 2017, plus retrospective VAT liability with 2%+4% monthly surcharges under Cabinet Decision No. 129 of 2025. You import, produce, stock, or move excise goods (tobacco, energy drinks, carbonated drinks, alcohol, or sweetened beverages) in the UAE without having registered for Excise Tax under Federal Decree-Law No. 7 of 2017. Excise Tax registration is mandatory for all persons who first supply excisable goods in the UAE — including from designated zones. You have received an FTA assessment, audit notification, or penalty notice and need a licensed Tax Agent to respond within the 20 working-day statutory window under Article 43 of Federal Decree-Law No. 28 of 2022. Missing this deadline forfeits the right to challenge — an outcome our proactive notice management prevents. You have identified errors in previously filed VAT returns — over-claimed input tax or under-declared output tax — and wish to make a voluntary disclosure under Article 10 of Federal Decree-Law No. 28 of 2022 before the FTA detects the discrepancy in audit. The penalty reduction available through proactive disclosure versus FTA-initiated detection is substantial. You are a UAE national who has recently completed construction of a new primary residence and are entitled to reclaim VAT on building costs under the New Residence VAT Refund Scheme. We manage the complete FTA application, document collation, and follow-up process through to payment. Entertainment, personal-use motor vehicles, and staff benefits are blocked input tax items under Articles 54–56 of the VAT Law. Claiming VAT on these categories triggers assessment and a 50% penalty on first FTA detection under Cabinet Decision No. 129 of 2025. Our compliance review identifies and corrects these claims before they appear in a filed return. Zero-rating is restricted to exports evidenced by Customs export declarations, international transport, and a limited set of specified supplies under Cabinet Decision No. 52 of 2017. Applying zero-rate to domestic supplies without proper evidence constitutes output tax under-declaration — one of the most common findings in FTA audits. Where a UAE-registered business receives services from a non-UAE supplier (e.g., software subscriptions, overseas consulting), reverse-charge VAT must be self-accounted at 5% on the value received. Failure to do so is a systematic under-declaration that compounds across every period the arrangement continues. Tax invoices missing any mandatory field under FTA VATP036 (TRN of supplier, date, description, unit price, total consideration, VAT amount) cannot support input tax recovery. A single rejected invoice on a large purchase permanently costs the business the full 5% VAT amount — and no retrospective correction is available if the supplier cannot reissue. Businesses that cross the AED 375,000 mandatory registration threshold but do not register within 30 days face: an AED 10,000 first-offence penalty under Cabinet Decision No. 40 of 2017, plus back-dated VAT liability on all supplies made since the registration date was due, with 2%+4% monthly surcharges accruing under Cabinet Decision No. 129 of 2025 from each original due date. Under Federal Decree-Law No. 8 of 2017 on Value Added Tax, mandatory VAT registration is required when taxable supplies and imports exceed AED 375,000 in the preceding 12 months or are expected to exceed that threshold in the next 30 days. Voluntary registration is permitted when taxable supplies or expenses exceed AED 187,500. Failure to register within 30 days of reaching the mandatory threshold incurs a penalty of AED 10,000 under Cabinet Decision No. 40 of 2017. VAT returns must be filed and payment made by the 28th day of the month following the end of the tax period. Most businesses are assigned a quarterly tax period, though the FTA may require monthly filing for high-turnover registrants. Late filing attracts AED 1,000 for the first offence and AED 2,000 for any repeat within 24 months under Cabinet Decision No. 129 of 2025, in addition to 2% immediate surcharge and 4% monthly compounding on unpaid tax. Under Federal Decree-Law No. 7 of 2017 on Excise Tax: tobacco products — 100%; electronic smoking devices and liquids — 100%; energy drinks — 100%; carbonated drinks (including sparkling water with added sugar or flavouring) — 50%; alcoholic beverages — 50%; sweetened beverages with added sugar or other sweeteners — 50%. Excise Tax applies at the point of first supply in the UAE: import, production, or release from a designated zone. Article 43 of Federal Decree-Law No. 28 of 2022 on Tax Procedures gives 20 working days from the date of the FTA decision to file a formal reconsideration request. The request must be in writing, supported by legal grounds and documentary evidence. If the FTA upholds the decision, escalation to the Tax Dispute Resolution Committee (TDRC) is available. Missing the 20-working-day window forfeits the right to challenge regardless of legal merit — a licensed Tax Agent is essential to prevent deadline failure. A voluntary disclosure under Article 10 of Federal Decree-Law No. 28 of 2022 is a self-correction mechanism allowing a registered business to correct errors in previously filed returns — whether under-declared VAT, over-claimed input tax, or incorrect Excise Tax calculations. Filing before the FTA opens an audit typically reduces the penalty from 50% of under-declared tax to the lower voluntary disclosure rate under Cabinet Decision No. 129 of 2025. Once the FTA initiates an audit, voluntary disclosure rates no longer apply. Yes. UAE nationals who construct a new primary residence on land they personally own are entitled to a VAT refund on eligible construction costs under the New Residence VAT Refund Scheme. Eligible costs include contractor invoices for construction services and building materials directly incorporated into the residence. The residence must be for personal use, not for rental or commercial purposes. We manage the complete FTA application and follow-up process through to refund payment. Under Cabinet Decision No. 40 of 2017, all VAT-registered businesses must retain tax records for a minimum of 5 years from the end of the tax year to which they relate. Required records include: tax invoices issued and received, credit notes, import and export documentation, accounting ledgers, bank statements, and copies of filed VAT returns. Failure to maintain adequate records incurs a penalty of AED 10,000 per violation and prevents the business from substantiating input tax claims in an FTA audit. You are not legally required to appoint a licensed Tax Agent to file VAT returns directly via the EmaraTax portal. However, a licensed Tax Agent is the only party permitted to formally represent you before the FTA in correspondence, assessments, reconsideration hearings, and Tax Dispute Resolution Committee proceedings. Engaging a licensed Tax Agent reduces filing errors, ensures penalty mitigation strategies are correctly applied, and provides legally authorised representation if the FTA opens an audit or issues a disputed assessment. For a free initial consultation and VAT compliance review, contact us: Abdelhamid & Co Certified Public Accountants & Auditors LLC — UAE Ministry of Economy Licence LC0106-01 | Federal Tax Authority Tax Agent TAN: 30003958 | Tax Agency TAAN: 20033908 | EAAA Fellow No. 124 | IASCA Fellow No. 1361 Last reviewed: 28 April 2026 — updated to reflect Federal Decree-Law No. 8 of 2017, Federal Decree-Law No. 7 of 2017, Federal Decree-Law No. 28 of 2022 on Tax Procedures, Cabinet Decision No. 40 of 2017, and Cabinet Decision No. 129 of 2025 penalty schedule (effective April 2026).VAT & Excise Tax Services UAE — Licensed Tax Agent & Full Compliance
UAE VAT & Excise Tax — What Businesses Need to Know
UAE VAT & Excise Tax Legal Framework
Key Facts — UAE VAT & Excise Tax
Our VAT & Excise Tax Service Lines
1. Tax Agency & FTA Representation
2. VAT & Excise Compliance Review
3. VAT Registration & De-registration
4. VAT Return Filing & Excise Return Filing
5. Reconsideration Requests & FTA Objections
6. Voluntary Disclosure
7. VAT Refund for UAE Nationals' New Residences
Our VAT Compliance Methodology
When Do You Need These Services?
1. Approaching or Exceeding the VAT Registration Threshold
2. Importing or Producing Excise Goods
3. FTA Assessment, Audit, or Penalty Notice
4. Prior-Period Errors Identified Internally
5. UAE National Building a New Residence
Common VAT & Excise Errors We Identify and Resolve
1. Input Tax Claimed on Non-Deductible Expenses
2. Incorrect Zero-Rating of Local Supplies
3. Failure to Apply Reverse Charge on Imported Services
4. Non-Compliant Tax Invoices Blocking Input Recovery
5. Late Registration and Retrospective VAT Liability
Why Choose Abdelhamid & Co for VAT & Excise Tax?
Frequently Asked Questions — UAE VAT & Excise Tax
What is the VAT registration threshold in UAE?
What is the VAT return filing deadline in UAE?
What products are subject to Excise Tax in UAE?
How do I challenge an FTA penalty or tax assessment?
What is a voluntary disclosure and when should I file one?
Can UAE nationals reclaim VAT on building a new home?
What VAT records must businesses retain and for how long?
Do I need a licensed Tax Agent to file UAE VAT returns?
Related VAT & Excise Tax Services
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Phone: 065610040
Email: info@abdelhamidcpa.com