Businesses must register for VAT if their taxable supplies and imports exceed the mandatory registration threshold of AED 375,000 per year. Voluntary registration is also available for businesses with annual taxable supplies between AED 187,500 and AED 375,000.

1. Taxable supplies include the sale of goods, services, and imports in the UAE that are subject to VAT at the standard rate of 5%. Some goods and services are exempt or zero-rated, such as Healthcare, Education, Exports and certain financial services.

• Exempt supplies: These are supplies that are not subject to VAT, such as certain financial services, healthcare, and education services.
• Zero-rated supplies: These are supplies taxed at a rate of 0%, meaning VAT is charged but can be reclaimed by businesses, e.g., exports, international transportation services, and certain food items.

1. VAT is calculated by applying the VAT rate (5%) to the taxable value of goods or services. For example, if a product costs AED 100, the VAT would be AED 5, making the total cost AED 105.

1. Businesses must submit VAT returns on a quarterly or monthly basis, depending on their turnover. VAT returns must be filed electronically through the Federal Tax Authority (FTA) portal by the 28th day of the month following the end of the tax period.

1. Failure to comply with VAT filing, payment, or registration requirements can result in penalties and interest charges. Penalties range from fines for late registration, late payment, or incorrect VAT returns to more severe penalties for repeated non-compliance.

1. Yes, businesses can reclaim VAT paid on purchases related to their taxable supplies. This is done by offsetting the VAT paid on business expenses against the VAT collected on sales in their VAT return, provided the purchases are for business use and meet VAT requirements.

1. To register for VAT, businesses need to apply through the UAE Federal Tax Authority (FTA) website, providing details such as company name, trade license, business activities, and estimated annual turnover. The process is online and typically takes a few days.

1. Exports of goods and services from the UAE to other countries are typically zero-rated for VAT purposes, meaning that businesses do not charge VAT on exports. However, they can still recover VAT on any costs incurred in relation to these exports.

1. Businesses must maintain detailed records of all transactions, including sales and purchase invoices, receipts, and any documents related to VAT payments or refunds. These records should be kept for at least 5 years, as required by the FTA.

• 50% on Carbonated drinks
• 100% on Tobacco products
• 100% on Energy drinks
• 100% on Electronic smoking devices
• 100% on Liquids used in such devices and tools
• 50% on Any product with added sugar or other sweeteners.