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VAT

Value Added Tax

What is VAT?

Value Added Tax (VAT) is a 5% indirect tax in the United Arab Emirates, effective as of January 1st, 2018, payable by both businesses and individuals.

Does VAT apply to Emirates Post products and services?

Yes, a standard 5% VAT applies to applicable products and services.

  • All inbound non document items are subject to 5% Duty (for items valued over AED 1000).
  • All inbound non document items require a declared value.
  • If an inbound non document is received with no value declared, a default value of AED 1000 will be applied as per the FTA Article on VAT.

Is it compulsory to pay VAT?

VAT exemptions are only declared by the Federal Tax Authority.

Businesses may claim back VAT payments, provided they have registered and meet the requirements. For more information, please visit www.tax.gov.ae

As a business owner, how can I register for VAT and receive a Tax Registration Number (TRN)?

You first have to sign up for an account on the FTA website, and then you can register for VAT via the e-services section. For more information, please read the VAT registration user guide.

I am a business owner. Do I need to share my TRN with Emirates Post?

Yes. Your TRN needs to be reflected on our monthly tax invoice and is required for you to claim back the incurred VAT within your VAT return.

Is it possible to issue cash receipts instead of VAT invoices?

No. A supplier must issue a valid VAT invoice, following the format mentioned in the legislation.

What is the TRN of Emirates Post?

100242664900003

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Last Update: 5 Jul 2023, 02:44:42 pm