Finance
Is Your VAT Compliance Healthy? A Practical VAT Health Check for UAE Businesses
5%
Standard UAE VAT rate
AED 375K
Mandatory registration threshold
AED 50K
Max penalty per incorrect return
5 Yrs
Record retention requirement
Filing a VAT return on time is the minimum standard — not the same as being VAT compliant. The FTA distinguishes between a return that is filed and one that is accurate. The gap between these standards is where most VAT risk sits.
VAT Rate Categories
The 7-Point VAT Health Check
01
Registration Status — Confirm threshold, category and all group entities are correctly reflected
02
Output Tax Accuracy — Correct rates on all supplies, zero-rating claims supported by evidence
03
Input Tax Recovery — Valid tax invoices for all claims, blocked categories excluded
04
Invoice Compliance — All mandatory fields present on every tax invoice issued
05
Record Keeping — 5-year retention (15 years for real estate), accessible within 48 hours
06
Partial Exemption — Correct apportionment methodology for mixed supply businesses
07
Related Party Transactions — Open market value applied (Cabinet Decision No. 52 of 2017)
How Univia Can Help
Univia conducts structured VAT health checks across all seven compliance dimensions, identifies gaps, quantifies exposure and provides a clear remediation plan before the FTA arrives.
Contact Univia: info@univiaglobal.com | +971 50 223 5283
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