Understanding Value Added Tax in the UAE
Value Added Tax (VAT) is an indirect tax imposed on the supply of most goods and services. It was introduced in the UAE on 1 January 2018. e&s products and services are subject to VAT and e&s is obligated to collect and remit funds to the Federal Tax Authority (FTA). e&s is legally obliged to comply with this Government mandate.
VAT is levied on the supply of all goods and services if no explicit provision is made to impose a zero rate or an exemption. The VAT will provide the UAE with a new source of income which will be continued to be utilised to provide high-quality public services.
The TRN is the identification number given to every person registered under UAE VAT. Only persons with a valid TRN can charge VAT on supplies and services. Business customers who are entitled to recover their VAT input should provide their TRN with supporting documents.