Tel : 00 971 4 346 4064

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Value Added Tax - VAT

Value Added Tax (or VAT) is an indirect tax. It is imposed on most supplies of goods and services that are bought and sold.

VAT is charged at each step of the ‘supply chain’. Ultimate consumers generally bear the VAT cost while Businesses collect and account for the tax, in a way acting as a tax collector on behalf of the government.

A business pays the government the tax that it collects from the customers while it may also receive a refund from the government on tax that it has paid to its suppliers. The net result is that tax receipts to government reflect the ‘value add’ throughout the supply chain. To explain how VAT works we have provided a simple, illustrative example below (based on a VAT rate of 5%)

Businesses will be responsible for carefully documenting their business income and costs and associated VAT charges. Registered businesses and traders will charge VAT to all of their customers at the prevailing rate and incur VAT on goods / services that they buy from suppliers. The difference between these sums is reclaimed or paid to the government.

All businesses in the UAE will need to record their financial transactions and ensure that their financial records are accurate and up to date. Businesses that meet the minimum annual turnover requirement (as evidenced by their financial records) will be required to register for VAT. Businesses that do not think that they should be VAT registered should maintain their financial records in any event, in case we need to establish whether they should be registered.

Please read more on the VAT in FAQs section or contact us on 04 346 4064 or email This email address is being protected from spambots. You need JavaScript enabled to view it.

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About Company

Welcome to Silver Stone Management Consulting based in Dubai Downtown, UAE – a branch office of Silverstone & Co - Chartered Certified Accountants, established in London, United Kingdom.

Silver Stone Management Consulting introduces new concept of cloud accounting outsource services for small to medium size businesses in UAE.
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Our Address

Dubai Office


2615 Aspin Commercial Tower,

Sheikh Zayed Road, Near DIFC Metro Station,
P.O. Box 343106, Dubai, UAE.

Skype: silverstone.ae

  • 00 971 4 346 4064
  • 00 971 50 747 6991
  •  This email address is being protected from spambots. You need JavaScript enabled to view it.