top of page
Writer's picturercrentals786

Vat Registration UAE: How To Deal With VAT In The UAE As A Tourist

Updated: Sep 13, 2022


VAT REGISTRATION UAE

VAT is a value-added tax that applies to goods and services sold in the UAE. As a tourist, it is important to be aware of the procedures you need to take in order to register for VAT and pay the correct amount. In this article, we provide you with tips on how to deal with Vat registration UAE as a Customer or tourist.


What is VAT?


VAT is a value-added tax that applies to goods and services in most countries in the world. It is charged at a specific rate, usually between 20% and 25%.


The UAE has its own version of VAT, which is known as the Sales and Use Tax (SUT). The SUT is levied on the purchase of goods and services in the UAE, at a rate of 10%.


Some things that are exempt from the SUT include food, beverages, clothing, newspapers, books, health services and educational materials.


If you are a tourist in the UAE and purchase goods or services that are subject to the SUT, you will need to declare and pay the SUT on your return home. You can do this either through your bank or via an online service.


If you are not a tourist in the UAE and you purchase goods or services that are subject to the SUT, you will not need to declare and pay the SUT. However, if you intend to resell these goods or services in the UAE, you will need to register for a VAT number and pay the appropriate taxes.


For more information about VAT in the UAE, please contact your local tax office.


When does VAT apply in the UAE?


VAT applies to most goods and services in the UAE, with a few exceptions. Here's a guide on how to deal with VAT when traveling to the UAE as a tourist.


When does VAT apply in the UAE?

VAT applies to most goods and services in the UAE, with a few exceptions. Here's a guide on how to deal with VAT when traveling to the UAE as a tourist.


What is included under 'goods'?

Goods covered by Value-Added Tax (VAT) include items that are used or consumed in the course of business, such as food, drinks, hotels, car rentals and tours. Services that are provided in connection with goods, such as hotel room service, car rentals and airfare are also subject to VAT.


What is excluded from VAT?

Some items are exempt from tax, including food for personal consumption, medical supplies and equipment used for religious ceremonies. Non-commercial transportation is also exempt from VAT.


How is VAT calculated?

The rate of value-added tax (VAT) is set by the Dubai Economic Development Authority (EDA). The EDA sets rates based on international standards and


How to register for VAT in the UAE


When traveling to the UAE, one of the first things you'll need to do is register for Value-Added Tax (VAT). This is because the UAE has a value-added tax system rather than a sales tax system.


To register for VAT in Dubai, you'll need to visit a taxation authority (usually called a “VAT registration office”). You can find out more about VAT in the UAE on the website of the Ministry of Finance.


Here are some tips on registering for VAT in the UAE:

  • Make sure you have all your documents with you when you go to register for VAT. These include your passport, visa, residence permit, and any other documents that prove your identity.

  • If you're registered for VAT in your home country, make a copy of these documents and bring them with you when you come to register for VAT in the UAE. You don't need to renew your registration if you're registered for VAT in your home country.

  • If you're visiting the UAE for less than 90 days, you don't need to register for VAT unless you intend to make any sales or purchases. If you're visiting the UAE


How to pay VAT in the UAE


If you're a tourist in the UAE, you'll likely encounter VAT (value-added tax) at some point during your stay. Here's how to pay it:

  1. Register with your local tax authority if you haven't already. This will help them keep track of your purchases and collect the correct taxes.

  2. Find out the value of the items you're buying and subtract the price of the item from the total cost of your purchase. This will give you the amount of tax you owe.

  3. Take your receipt to the cashier and pay the tax in cash. Alternatively, you can use an ATM to withdraw money and then hand it over to the cashier.


What to do if you don’t have any tax invoices?


If you are a tourist in the United Arab Emirates and you don’t have any tax invoices, there are a few things you can do. First, you can try to find businesses that sell tourist items and ask for a sales receipt. If the business doesn’t provide a receipt, you can try to ask for an estimate of the value of the item. If you still can’t determine the value, you can contact your home country’s tax department and ask for help.


Conclusion


If you’re visiting the UAE and you’re not familiar with VAT (value-added tax), now may be a good time to learn about it. As a visitor, it is important to know what VAT applies to, and how to register for it if necessary. Make sure you have all of the required documentation before arriving in the UAE so that your transactions go as smoothly as possible. In addition, make sure to read up on some of the tips below so that you can minimize any disruptions or problems during your stay. Thank you for reading!


Comments


bottom of page