Ensuring full compliance with Value Added Tax (VAT) is mandatory for taxable persons that are subject to it. Introduced in the UAE on January 1st 2018, VAT is a type of indirect tax imposed on the price of a product or service at each stage of production, distribution, or sale to the end consumer. The standard VAT rate in the UAE is 5% which applies to most goods and services albeit with some exemptions. Ensuring VAT compliance in the UAE can be complex for businesses but it is a necessity considering the hefty penalties associated with it.