Corporate, VAT & Indirect Tax

Not registered for UAE corporate tax: Every UAE business with revenue above the exemption threshold must register — failure to do so creates penalties that accumulate from the effective date.

Free zone entity incorrectly assuming 0% applies: The qualifying free zone person regime has specific conditions that many entities do not meet — assuming exemption without proper analysis is a significant risk.

IFRS-to-CT taxable income adjustments not made: The UAE corporate tax return is not the same as your IFRS accounts — specific adjustments are required and errors in the return create assessment exposure.

Transfer pricing not documented for related party transactions: UAE CT law requires arm's length pricing and documentation for related party transactions above threshold — undocumented positions invite FTA scrutiny.

Supply type misclassified between standard, zero-rated and exempt: Treating a zero-rated supply as standard-rated, or vice versa, creates incorrect VAT charged to customers and input recovery errors that compound.

Input tax recovered on non-recoverable expenses: Recovering input VAT on entertainment, personal expenses or exempt-use costs creates a liability that surfaces in FTA audits with interest and penalties.

VAT returns filed late or with errors: Late filing and material errors in UAE VAT returns trigger administrative penalties that far exceed the cost of correct compliance.

Zero-rating conditions not met for export supplies: Applying zero-rating to exports without meeting the documentary conditions creates a VAT liability that the FTA will assess if the records are reviewed.

VAT registration obligations in European operations not assessed: Operating in EU countries without registering for VAT creates a liability from the first taxable supply, with interest and penalties accruing from that date.

Customs and import duties not factored into commodity trade economics: Import duties that were not modelled into the trade create margin erosion that is discovered too late to recover.

Indirect tax obligations not coordinated across group entities: Each entity managing its own indirect tax position independently creates inconsistencies and missed obligations across the group.

No central tracking of multi-jurisdiction VAT positions: Without a consolidated view of VAT registrations, filings and refund positions, the group is routinely exposed to obligations it does not know it has.

UAE businesses subject to corporate tax for the first time: Companies navigating the UAE CT regime introduced in June 2023 and needing their first registration, return and compliance programme.

Trading companies with complex VAT supply chains: Businesses with cross-border flows where supply type classification, zero-rating analysis and input recovery require specialist input.

International groups with multi-jurisdiction indirect tax obligations: Companies operating across the GCC, Europe and Asia who need their indirect tax position managed consistently across all jurisdictions.

Businesses that have received FTA correspondence: Companies under FTA query or audit that need professional representation and a credible technical response.