Financial services encompass a broad range of economic activities provided by the finance industry, including banking, investment, insurance, and wealth management. These services play a crucial role in the functioning of the global economy by facilitating the flow of capital, managing risk, and offering tools for individuals and businesses to achieve their financial goals. They enable seamless transactions, support credit availability, and contribute to the efficient allocation of resources across sectors. From personal banking solutions like savings accounts, loans, and credit facilities to complex investment strategies, corporate financing, and retirement planning, financial services address a wide array of financial needs. Insurance services protect against unforeseen risks, while wealth management helps individuals grow and preserve their assets. By offering tailored financial products and expert advice, the industry empowers clients to make informed financial decisions. Ultimately, financial services help build financial stability, support sustained economic growth, and foster confidence in financial systems, making them a vital pillar of modern society.
VAT (Value Added Tax) is a 5% tax added to the sale of goods and services in the UAE.
It started in the UAE on January 1, 2018.
| Type | Condition |
|---|---|
| Mandatory Registration | If your business turnover (sales/revenue) is more than AED 375,000 in the last 12 months or expected in the next 30 days |
| Voluntary Registration | If your turnover is more than AED 187,500 but less than AED 375,000 |
| Not Required | If turnover is below AED 187,500 |
- You must charge 5% VAT on your invoices once registered.
- You must file VAT returns quarterly (or monthly, if assigned).
- Even if you have zero sales, you must file Nil VAT returns to avoid penalties.
- Penalties for late registration or mistakes can be heavy (starting from AED 10,000+).