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Tax

VAT, Corporate Tax and Excise Tax services in the UAE

Registrations, returns, advice and representation before the FTA, from a registered tax agent advising UAE businesses since VAT was introduced.

Book a consultation What we cover

For most of its history the UAE had almost no business taxes. That has changed quickly. Excise tax arrived in October 2017 and VAT on 1 January 2018, Corporate Tax applies to financial years starting on or after 1 June 2023, and transfer pricing and minimum tax rules sit alongside them. Each brings registration deadlines, filing obligations and penalties for getting things wrong.

Tax now touches almost every part of a business: how you invoice, how contracts are worded, how group companies charge each other and how your accounts are prepared. Mistakes usually come to light later, during an FTA audit or a refund review, when they are harder and more expensive to put right.

Shastra was established in 2017, before VAT came into force, and is registered with the Federal Tax Authority as a tax agent, which means we can act for you in your dealings with the FTA. We handle routine compliance reliably and help you think ahead about the decisions that affect how much tax you pay and how much risk you carry.

What we cover

Tax services

VAT

5 services
  • 01

    VAT registration, amendment and de-registration

    Businesses must register for VAT once taxable supplies and imports pass the mandatory threshold, and may register voluntarily below it. We assess whether and when you need to register, prepare the application on the FTA’s EmaraTax portal and respond to any FTA queries. When your details change or you no longer need to be registered, we file the amendment or de-registration within the time limits that apply.

    • Threshold assessment and registration timing
    • Mandatory, voluntary and tax group registrations
    • Amendments to business details and authorised signatories
    • De-registration applications and final returns
  • 02

    VAT return filing and compliance

    VAT returns are usually filed quarterly, or monthly for some businesses, and must be submitted and paid by the 28th day after the period ends. We prepare each return from your records, check input tax claims and the treatment of exempt, zero-rated and reverse-charge transactions, and file on time. We also review your invoicing and record-keeping so the filings would stand up to an FTA audit.

    • Quarterly and monthly VAT return preparation
    • Input tax recovery and reverse charge checks
    • Tax invoice and credit note compliance review
    • Voluntary disclosures to correct past errors
  • 03

    VAT refund assistance

    When input VAT exceeds output VAT, as it often does for exporters, new businesses and companies making large capital purchases, the excess can be reclaimed. The FTA reviews refund claims closely and frequently asks for supporting evidence. We prepare refund applications with the evidence organised from the outset and respond to FTA queries, which helps avoid unnecessary delays.

    • Excess input tax refund applications
    • Supporting schedules and document packs
    • Responses to FTA information requests
    • Special refund schemes where you are eligible
  • 04

    VAT clarifications, reconsiderations and litigation support

    Where the VAT treatment of a transaction is genuinely unclear, a private clarification request gets the FTA’s position in writing. If you disagree with an FTA decision or penalty, a reconsideration request is the first formal step, followed where necessary by the Tax Disputes Resolution Committee and the courts. Strict deadlines apply at every stage, so acting quickly matters. We prepare well-reasoned submissions and work alongside legal counsel where a case proceeds to litigation.

    • Private clarification requests to the FTA
    • Reconsideration requests against decisions and penalties
    • Penalty waiver requests where eligible
    • Support through dispute committee and court stages
  • 05

    VAT advisory and health checks

    Many VAT errors stay invisible until the FTA finds them: incorrect zero-rating, a missed reverse charge, input tax claimed on blocked expenses, or invoices missing required details. A VAT health check reviews your returns, transactions and processes to find and correct these issues, ideally through a voluntary disclosure before any audit begins. We also advise on the VAT effect of new contracts, property transactions, group structures and cross-border supplies.

    • Review of past returns and sample transactions
    • Identification of under- and over-declared VAT
    • Advice on contracts, real estate and cross-border supplies
    • FTA audit preparation and support

Corporate Tax

5 services
  • 06

    Corporate tax registration

    Every taxable person in the UAE, including free zone companies and individuals whose business turnover exceeds the set threshold, must register for Corporate Tax, even if no tax ends up payable. The FTA has fixed registration deadlines, and registering late carries a penalty. We confirm your obligation, prepare the application and make sure the details match your licence and ownership records.

    • Registration for companies, free zone entities and individuals
    • Tax group and branch considerations
    • Corporate Tax registration number and certificate
    • Amendments, and de-registration on closure
  • 07

    Corporate tax return filing

    Corporate Tax returns are due within nine months of the end of your tax period, and any tax due must be paid by the same date. Preparing the return means starting from your financial statements and adjusting for exempt income, non-deductible expenses, interest limits, related party transactions and available reliefs. We prepare and file the return, calculate the liability and keep a full working file in case the FTA has questions.

    • Taxable income computation from financial statements
    • Adjustments for exempt income and non-deductible expenses
    • Relief elections and use of tax losses
    • Return filing and payment before the deadline
  • 08

    Corporate tax impact assessment and advisory

    Corporate Tax affects more than the annual return. It influences how a group is structured, how owners are paid, how related businesses deal with each other, and whether free zone benefits are available. An impact assessment looks at your business specifically and shows what the tax will cost, what needs to change and which choices are open to you, and we then help implement those changes in your accounts, contracts and processes.

    • Business-specific Corporate Tax exposure analysis
    • Group structure and tax grouping options
    • Owner remuneration and related party arrangements
    • Implementation in contracts, accounts and processes
  • 09

    Transfer pricing documentation support

    UAE Corporate Tax requires transactions with related parties and connected persons to be priced at arm’s length, and businesses must be able to show how those prices were set. Depending on your size and transaction values, you may need to file a disclosure form with your return and maintain a master file and local file. We map your related party transactions, help set defensible pricing and prepare the supporting documentation.

    • Mapping related party and connected person transactions
    • Arm’s length pricing analysis
    • Transfer pricing disclosure form preparation
    • Master file and local file support
  • 10

    Small business relief and free zone (QFZP) assessment

    Two reliefs can significantly reduce Corporate Tax for eligible businesses. Small Business Relief allows resident businesses with revenue under the threshold to be treated as having no taxable income, while Qualifying Free Zone Person status allows qualifying income to be taxed at 0%. Both come with strict conditions that must be met and documented correctly. We assess your eligibility, model the outcome and help you stay within the conditions.

    • Small Business Relief eligibility and election
    • Qualifying Free Zone Person status assessment
    • Qualifying and non-qualifying income analysis
    • Substance and de minimis condition reviews

Excise Tax

4 services
  • 11

    Excise tax registration and de-registration

    Excise tax applies to goods such as tobacco products, energy drinks, sweetened drinks and electronic smoking devices and liquids. Businesses that import these goods, produce them or release them from a designated zone generally need to register with the FTA, and unlike VAT there is no turnover threshold. We confirm whether you need to register, complete the registration and keep your details current, including de-registration when the activity stops.

    • Registration for importers, producers and stockpilers
    • Designated zone warehouse keeper registration
    • Amendments to registration details
    • De-registration when excise activity ends
  • 12

    Excise tax returns and payments

    Excise tax returns are filed monthly, with the return and payment due by the 15th day after the end of each period. Each return has to reconcile with your import, production, stock and sales records. We prepare and file the returns, check that available deductions are claimed, such as excise already paid on goods that are later exported, and keep the working papers ready for an FTA review.

    • Monthly excise return preparation and filing
    • Reconciliation to import, stock and sales records
    • Deduction and refund claims where eligible
    • Voluntary disclosures to correct past returns
  • 13

    Product registration, pricing and tax stamps

    Excise goods must be registered with the FTA before they are imported or released, and the tax due depends on how each product is classified and priced. Since 1 January 2026, sweetened drinks are taxed per litre according to their sugar content rather than as a percentage of price, which means product data has to be accurate and supported. We manage product registrations and price submissions, and help tobacco businesses meet the digital tax stamp requirements.

    • Excise product registration and updates
    • Price lists and excise price calculations
    • Sugar-content classification for sweetened drinks
    • Digital tax stamp compliance for tobacco products
  • 14

    Designated zones and excise advisory

    Excise goods can be held in a designated zone without tax becoming due until they are released for consumption in the UAE, which makes warehouse structure and stock movements an important part of excise planning. We advise on using designated zones, moving goods between them, and the excise effect of new products, pricing changes and supply chain decisions. For drinks producers and importers, that includes the impact of the 2026 sugar-based rates on pricing and product formulation.

    • Designated zone set-up and stock movement rules
    • Excise impact of new products and price changes
    • Sugar-based rate planning for drinks businesses
    • FTA audit preparation and support

Other taxes and reporting

3 services
  • 15

    Economic Substance Regulations (ESR) notification and reporting

    The Economic Substance Regulations required UAE entities carrying out certain activities to file annual notifications and reports. The regime no longer applies to financial years ending after 31 December 2022, but obligations for earlier periods still stand, and some businesses have outstanding filings or penalties from those years. We help you confirm whether anything remains open and resolve historic notifications, reports and penalty matters.

    • Review of ESR filings for past periods
    • Outstanding notifications and reports
    • Penalty review and reconsideration requests
    • Records to support past ESR submissions
  • 16

    Country-by-Country Reporting (CbCR)

    Large multinational groups with a UAE parent or UAE group entities may need to file Country-by-Country Reporting notifications and reports, setting out revenue, profit, tax and activity in each jurisdiction. Whether the obligation applies depends on group revenue and structure. We help you determine whether CbCR applies and prepare the notifications and data required.

    • Applicability assessment based on group revenue and structure
    • CbCR notifications for UAE group entities
    • Data collection and report preparation
    • Consistency with transfer pricing documentation
  • 17

    Tax residency certificate assistance

    A tax residency certificate confirms that a company or individual is resident in the UAE for tax purposes, which allows them to claim benefits under the UAE’s double taxation agreements. Applications need supporting evidence such as licences, tenancy contracts, bank statements, audited accounts or proof of physical presence, depending on the applicant. We check eligibility and prepare a complete application to avoid rejection or delay.

    • Eligibility checks for companies and individuals
    • Supporting document preparation
    • Certificates for specific treaty countries
    • Renewals for ongoing treaty claims

Process

How we work

  1. Understand your position

    We review your activities, transactions, registrations and filing history to establish what applies and what is outstanding.

  2. Fix and register

    Missing registrations, past errors and overdue items are dealt with first, including voluntary disclosures where needed.

  3. File on schedule

    Returns are prepared from your records, reviewed and filed before the deadline, with payment amounts confirmed in advance.

  4. Advise before decisions

    We look at the tax effect of new contracts, structures and transactions before they are finalised, not after.

  5. Support with the FTA

    As your registered tax agent, we deal with the FTA on your behalf on queries, audits, refunds and reconsideration requests.

Tax

Why clients choose Shastra

  • 01

    Extensive experience

    We have been advising UAE businesses since VAT was introduced in 2018, and have worked through each major change to UAE tax since.

  • 02

    Tax joined to accounting

    When we also keep your books, returns are prepared from records we understand rather than figures sent over at the last minute.

  • 03

    Advice, not just filing

    We raise planning points and risks as we prepare filings, instead of simply processing the numbers.

  • 04

    FTA-registered tax agent

    We are registered with the Federal Tax Authority as a tax agent and can represent you directly before the FTA.

FAQs

Frequently asked questions

Have a question that is not answered here? Ask us directly, and we will give you a straight answer.

Ask a question
When does my business need to register for VAT?

Registration is mandatory once your taxable supplies and imports have exceeded AED 375,000 over the previous 12 months, or are expected to exceed it in the next 30 days. Businesses above AED 187,500 can register voluntarily. The application must be made within a set period after the threshold is crossed, so it is worth monitoring turnover closely.

What is the UAE Corporate Tax rate?

The standard rate is 9% on taxable income above AED 375,000, with income up to that amount taxed at 0%. Qualifying free zone persons can apply 0% to qualifying income, and large multinational groups may be subject to additional minimum tax rules. Your actual position depends on your structure and income, which is what an impact assessment establishes.

Does my free zone company pay Corporate Tax?

Free zone companies are within the Corporate Tax regime and must register and file returns. Those that meet the conditions to be a Qualifying Free Zone Person can apply 0% to qualifying income, but other income is taxed at 9%, and failing the conditions can remove the benefit for several years. It needs to be assessed carefully rather than assumed.

What is Small Business Relief?

Small Business Relief allows a resident business with revenue of AED 3 million or less in a tax period to elect to be treated as having no taxable income for that period. Under the current rules it is available for tax periods ending on or before 31 December 2026, and some businesses, including qualifying free zone persons and members of large multinational groups, cannot use it.

Does my business need to register for excise tax?

If you import excise goods into the UAE, produce them, or release them from a designated zone, you generally need to register with the FTA, and unlike VAT there is no turnover threshold. Excise goods include tobacco products, energy drinks, sweetened drinks and electronic smoking devices and liquids. Since 1 January 2026, sweetened drinks are taxed per litre according to their sugar content rather than as a percentage of price.

What happens if a VAT or Corporate Tax return is filed late?

Late filing and late payment both attract administrative penalties, and late payment penalties can keep growing while the amount stays unpaid. If you have missed a deadline, it is usually best to file and pay as soon as possible, then consider whether a reconsideration or penalty waiver request is appropriate.

I made a mistake on a past VAT return. What should I do?

Depending on its size, the error may be correctable in your next return or may require a voluntary disclosure to the FTA. Correcting an error before the FTA finds it generally results in lower penalties than if it is discovered during an audit. We can review the error and advise on the right route.

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