A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of tax that is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer.
VAT was introduced in the United Arab Emirates (UAE) on 1 January 2018. The general VAT rate in the UAE is 5% and applies to most goods and services, with some exemptions.
At KPMG we have a team prepared to assist our clients in planning, analysis and advice on VAT and other indirect taxes, both in their national activity and investments and their expansion overseas.
Our services have a double purpose: to identify and help avoid tax risks in the UAE and abroad, and to promote savings and opportunities in these taxes, especially considering the significant volume of treasury managed in relation to VAT. Our work focuses both on savings in absolute terms and on those with a strong financial component.
Understanding and managing how indirect taxes impact your activities and operations, be it domestically or globally, has never been more important. In a digital age, governments are increasingly using technology to improve compliance and focusing on indirect taxes as a source of revenue. As you navigate this complex puzzle of continually changing rules and regulations, you need to stay informed and proactively manage your indirect tax to minimize risk and maximize value.
We have a team of subject matter experts from across industry and market lines with extensive knowledge providing commercially minded support and advice on all indirect taxes. With a global network of indirect tax professionals located in more than 100 countries we have the capability to deliver value, no matter who you are, what you do, or where you operate.
Service offerings
- VAT advisory
- VAT health check
- VAT compliance (VAT return preparation and submission)
- VAT audit support
- VAT dispute resolution
- Tax agency support
- VAT due diligence review
- VAT refund support
- Preparation and submission of the voluntary disclosures
- Preparation and submission of the VAT clarification requests to the Federal Tax Authorities
- Preparation and submission of the VAT reconsideration requests to the Federal Tax Authorities.
Capabilities and solutions
Tax flash
- Updated UAE VAT Law No. 16 of 2024
- Updates to UAE VAT Executive Regulation No 100 of 2024
- Federal Tax Decision No 4 of 2024 amending the FTA’s policy on issuing clarifications and directives
- Public Clarification No. 38 (Manpower vs Visa facilitation services)
- Amendments to the Excise Tax Executive Regulations
- New VAT Reverse Charge Mechanism on local supplies of electronic devices
- Amendment to the UAE VAT Executive Regulations
