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A VAT consultant helps a UAE business apply VAT correctly: registration, tax coding, returns, refunds and dealings with the Federal Tax Authority (FTA). You need one when your supplies are not all plain 5% sales, or when the cost of a mistake is higher than the fee. The standard VAT rate is 5%. Source: Federal Tax Authority, VAT Law, checked .
What a consultant does
- Checks whether you must register and applies for you
- Sets the tax codes in your books: standard, zero rated, exempt
- Prepares the VAT return for your approval
- Reviews past returns and files a voluntary disclosure if something was wrong
- Handles an FTA query or audit request
- Advises on deregistration and refunds
When to hire one
| Situation | Why it helps |
|---|---|
| First registration | Deadline and threshold tests are easy to get wrong |
| Mixed supplies | Zero rated and exempt sales change what input tax you recover |
| Imports and reverse charge | Failure to account under reverse charge is charged at 14% per year on the unpaid tax |
| Goods in a designated zone | Breaking the conditions is fined at the higher of AED 50,000 or 50% of the tax on the goods |
| Missed returns | A late return costs AED 1,000, then AED 2,000 if repeated within 24 months |
Source: Federal Tax Authority, administrative penalties table, checked .
Scope: the parts you must read twice
We hold only the penalty for designated zones and the reverse charge rule above. The full list of designated zones, exempt supplies and VAT group rules is not confirmed here. Ask the consultant to show the rule on the FTA site for any position that relies on them. Also, from , no self invoice is needed under the reverse charge, though supporting documents must be kept. Source: Federal Tax Authority, Ministry of Finance announcement on VAT law amendments, checked .
What to ask before you sign
- Who does the work, and who reviews it?
- Which periods and returns does the fee cover?
- Do they file, or do you?
- What do you supply and by which date each period?
- What is billed on top: registration, corrections, FTA queries?
- How do they treat a position that is unclear?
A general accounting firm may cover VAT as part of monthly work. See VAT registration cost for fee ranges, and use the form below to ask firms for quotes.
How the work usually runs
A common set-up is a short onboarding, then a monthly or quarterly cycle. At onboarding the consultant reviews your contracts, your invoice templates and your tax codes. Each period they receive your records, ask about the odd items, prepare the return and send it to you for approval. You file, or they file on your authority. After filing, you keep a copy of the return and the working papers.
Fees vary by volume and by how clean your books are. The VAT registration cost page lists what firms have published. We do not state a standard price here.
Red flags
- A promise that you will never be penalised or audited.
- No written scope.
- A vague answer on who prepares and who reviews.
- Advice on a zone or exemption with no reference to the rule.
- Pressure to register or deregister without looking at your figures.
Consultant, accountant or auditor
A consultant advises on tax. An accountant keeps the books. An auditor gives an opinion on financial statements, which is a separate service. Many firms in the directory offer all three under one roof, but check the scope of each.
Local points worth raising
Dubai businesses often sell across the emirates and abroad, hold stock in free zones, or buy services from overseas suppliers. Each of these touches a different VAT rule. Tell the consultant at the start which of them apply to you, so the scope covers them.
If you also pay corporate tax, ask whether the same firm will line up the two sets of figures. Sales on the VAT return and revenue in the corporate tax return should reconcile, and differences should have an explanation ready.
