Value added tax is now a steady part of doing business in the UAE. If you provide services in Dubai you need to know which services are subject to VAT, which are zero-rated, and which are exempt. SS &Co helps clients get this right by offering practical VAT services Dubai and tax accounting services that remove guesswork.
The basic rule in one sentence
Most services supplied in the UAE are subject to VAT at the standard rate of five percent. This is the starting rule for anyone seeking VAT services Dubai or tax accounting services.
Where VAT applies to services
VAT applies when a taxable person supplies a service in the UAE for consideration. The obligation to register and account for VAT rests on the supplier when the taxable turnover crosses the registration threshold. SS &Co provides VAT services Dubai that include registration support and ongoing compliance so clients do not miss these rules.
Services that are generally taxable
A broad range of professional services are taxable at the standard rate. Examples include consultancy, legal advice, engineering services, hospitality services and most digital and technical services. If your business offers advisory work or operational support you should treat those services as taxable unless a specific rule says otherwise. For clear management of these obligations, our VAT services Dubai are set up to identify standard-rated service lines and integrate them into accounting systems.
Zero-rated services and when they matter
Certain services can be zero-rated when strict conditions are met. Exports of services to recipients outside the UAE may qualify for zero rating if the recipient is established and located outside the UAE at the time the service is supplied and specific conditions are fulfilled. International transport and related services are often zero-rated. SS &Co advises clients on documentation and the place-of-supply tests to claim zero rating correctly. Our tax accounting services include cross-checks to ensure zero-rated claims are defensible.
Exempt services you cannot reclaim input VAT on
A smaller set of services are exempt from VAT. Financial services that meet the strict definition of exemption and certain local passenger transport services are common examples. Exempt supplies mean VAT is not charged, and input VAT recovery is restricted. Our tax accounting services help clients map which revenue streams are exempt so that input VAT is allocated correctly and compliance risks are reduced.
Place of supply rules for services
The place of supply determines whether a service is in scope of UAE VAT. When the place of supply is within the UAE, VAT rules apply. When the place of supply is outside the UAE, the transaction may be treated as outside the scope or zero-rated depending on the facts. This is a technical area where SS &Co’s VAT services Dubai focus on applying the place-of-supply tests consistently and documenting the outcome.
Common service categories and how they are treated
Accounting and bookkeeping are taxable services in the UAE. IT support, software licensing and cloud services are usually taxable when consumed in the UAE. Management fees charged by a Dubai company to related parties are typically taxable unless relief applies. Real estate related services can carry special rules depending on whether they relate to residential or commercial property. SS &Co bundles these specific checks into our VAT services Dubai offerings so clients can price, invoice and report correctly. Our tax accounting services then record and report the VAT effect in the financial statements.
How exported services are treated in practice
Exported services can qualify for zero rating, but the FTA requires evidence that the recipient is outside the UAE and that the services were supplied to a non-resident who was outside the UAE at the time of supply. The rules changed in recent years so businesses must revisit their export classifications. SS &Co’s VAT services Dubai include a review of contracts, invoices and client locations to support zero-rated exports. This review ties directly into our tax accounting services to ensure entries and VAT returns match.
VAT on imported services
When a UAE business receives services from abroad, the import of services rules can deem the recipient to have made the supply to itself and require reverse charge accounting. This means the UAE recipient may need to account for VAT on the imported service and simultaneously claim input VAT if recoverable. Missteps here are common. SS &Co’s tax accounting services are designed to capture these import transactions and reflect the correct VAT treatment in both tax filings and accounting records.
Documentation and records you must keep
To support VAT treatment of services you must keep clear invoices, contracts, proof of where the recipient is established, and any transport or export evidence for zero-rated supplies. The FTA expects businesses to maintain reliable records. Our VAT services Dubai include a documentation checklist and ongoing compliance monitoring. Our tax accounting services then embed these requirements into the month-end and year-end processes so the books stay audit-ready.
Why advisory and accounting must work together
A misunderstanding of VAT treatment can lead to incorrect VAT returns, missed recovery of input VAT, or penalties. Advisory work identifies the correct VAT position and tax accounting services translate that position into financial records and returns. SS &Co combines VAT services Dubai with specialist tax accounting services so that advice is operationalized and the VAT entries in the accounting system are accurate. This reduces risk and frees management to focus on running the business.
Practical steps you can take now
Start by mapping your service lines against the FTA guidance for zero-rated and exempt supplies. Check the place of supply for cross-border work. Reconcile your VAT returns to your accounting system. Use a specialist if you have complex exports, imported services or financial service lines. SSCOGLOBAL provides VAT services Dubai that include mapping, practical advice and hands-on tax accounting services to implement the outcome.
Final thought
VAT is straightforward when you treat it as a process rather than a one-off tax calculation. Know which services are taxable, which can be zero-rated, and which are exempt. Keep strong records. Align your advisory work with ongoing tax accounting services so the tax position is consistently reflected in your accounts. If you want practical, reliable VAT services Dubai and integrated tax accounting services, SS &Co can help you apply the rules, document the facts, and report with confidence.
