Over the past couple of years UAE, has become a hub for businesses. Because of the ease with which one can set up their businesses here or can expand their business operations, owing to the political provisions and booming economy which promises high returns and profits, thousands of people, not just from the country but from all over the world have come to UAE, in order to start their own businesses.

While operating a business in UAE turns out to be quite profitable, it is also important to remember that you need to adhere to certain rules and regulations of the government with respect to running your business, as it is with any other country. As a business owner, one of the obligations you need to fulfill is registration for VAT in UAE.


It is mandatory to not consider VAT same as sales tax, although both are consumption tax but there is a significant difference among the two. VAT in UAE is imposed on each stage of the supply chain, imports and goods/services. Sales tax is only levied on the final sale and transaction involving goods. VAT is the more sophisticated approach to taxation as it involves business collecting tax on behalf of the government and avoid any misrepresentation and tax evasion.