Cross-Border VAT Advisory Services in UAE

Navigating Cross-Border VAT? We Simplify It for You

With the UAE’s robust trade ecosystem and central geographic location, cross-border transactions are the lifeblood of many businesses operating in Dubai, Abu Dhabi, and Sharjah. However, these transactions also bring complex tax implications.

Whether you’re exporting goods to the GCC, importing services, or dealing with reverse charge mechanisms, VAT tax preparation & filing in UAE becomes significantly more challenging. AEY Accounting LLC offers end-to-end Cross-Border VAT Advisory to help your business remain compliant, accurate, and penalty-free.

Our team ensures that every cross-border transaction adheres to the Cross-Border VAT compliance UAE service expectations as outlined by the Federal Tax Authority (FTA).

Why Cross-Border VAT Compliance Matters in the UAE

As an import/export hub, the UAE imposes specific VAT treatment rules for cross-border activities. These rules differ depending on:

  • The type of goods or services
  • Whether you’re dealing with GCC-registered VAT businesses
  • The use of Free Zones vs Mainland
  • Customer location (B2B or B2C)

 

Failure to comply can result in serious Cross-Border VAT tax penalties in UAE, including interest on unpaid VAT, denied refunds, and FTA audits.

Common Scenarios Where Errors Occur

  • Incorrect VAT application on international invoices
  • Over-claiming input VAT on imported goods
  • Ignoring reverse charge on foreign services
  • Misreporting intra-GCC transactions
  • Mismatched customs declarations and VAT returns

What AEY’s Cross-Border VAT Advisory Covers

We provide strategic and operational support to ensure full compliance with cross-border VAT obligations.

Strategic VAT Planning for Cross-Border Transactions
  • Determination of supply type (zero-rated, standard-rated, exempt)
  • Mapping reverse charge vs direct VAT payments
  • Analysis of Free Zone vs Mainland impact
  • Advice on import/export documentation and FTA codes
 Cross-Border VAT Filing & Reconciliation
  • Filing Form 201 with cross-border entries
  • Reconciliation with customs import/export declarations
  • Managing VAT on e-commerce platforms with cross-border logistics
  • Handling partial VAT reclaim on business expenses
FTA Review & Appeals Support
  • Penalty assessment and resolution
  • Drafting Cross-Border VAT appeals UAE tax service documentation
  • Reconsideration requests for denied refunds or incorrect penalties
  • Liaising with the FTA on behalf of the client

Cross-Border VAT Compliance Checklist

Ensure your company ticks all the right boxes:

Compliance Item Status Required by FTA
Valid TRN and VAT Registration UAE-registered entity with correct customs codes
VAT-Compliant Invoices Bilingual with TRN, date, and product/service breakdown
Customs Declarations Matched with import/export activity and VAT returns
Correct VAT Treatment of Imports RCM (Reverse Charge Mechanism) properly applied
Documentation for Intra-GCC Sales GCC TRN, shipping docs, and zero-rated justification
VAT Return Filing Accuracy On-time with matching declarations and transaction logs

AEY reviews each item to ensure your cross-border operations are bulletproof.

Industries We Support

Our advisory services cater to industries most impacted by cross-border complexities:

Sector Key VAT Considerations
E-Commerce Imports, platform VAT registration, reverse charge
Logistics & Freight Documentation consistency, zero-rated exports, customs-VAT alignment
Wholesale Trading Large volume exports, compliance on bulk imports
Manufacturing Equipment imports, Free Zone facility use, subcontractor reconciliation
Consulting & SaaS International services, RCM applicability, service destination analysis

Sample Advisory Engagement Dashboard

Component Client Case (Dubai Trading Co.) AEY Action
Incorrect GCC Invoicing Format Identified for B2B transactions Revised and reissued compliant invoices
RCM Misreporting on Services Missed in Q2 VAT return Filed voluntary disclosure (Form 211)
Denied VAT Refund AED 17,500 rejected by FTA Submitted appeal with documentation
Customs-VAT Mismatch 3 imports unrecorded in return Matched and adjusted return entries

Pricing – Cross-Border VAT Advisory Packages

Service Tier Ideal For Price (AED)
Cross-Border VAT Health Check Startups or growing exporters 1,000 (one-time)
Quarterly VAT Filing + Advisory Trading and logistics companies 2,000 / quarter
FTA Appeal Preparation Entities under review or penalty From 2,500
Comprehensive VAT Advisory Package High-volume or multi-jurisdictional firms Custom Quote

Custom quotes available for multi-country operations and import/export-heavy sectors.

We Support Clients Across UAE Free Zones & Mainland

Our tax experts offer cross-border VAT support to businesses operating in:

  • Dubai – JAFZA, DIFC, DAFZA, and Dubai Mainland
  • Abu Dhabi – ADGM, KIZAD, Mussafah exporters
  • Sharjah – SAIF Zone, Sharjah Free Zone, trading firms

 

We understand the zone-specific exemptions and rules affecting cross-border operations.

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Mail Address

info@aey.ae

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Popular Questions

Your Trusted Partner for Business Support & Solutions.

Yes, most imports are subject to VAT via reverse charge mechanism (RCM). FTA requires proper reporting in VAT returns and customs alignment.

Yes, if the services qualify under business use and you have correct invoices. AEY helps with correct classification and documentation.

If you’re the buyer in UAE, you’re responsible for VAT via reverse charge. We help you assess and file appropriately.

You must file an FTA reconsideration within 20 business days of penalty issuance.

Absolutely. We specialize in reconciling customs data with VAT returns to avoid audits or delayed refunds.

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