VAT Treatment Review (Supply Classification) — Accurate VAT classification for UAE businesses
We review how your supplies are classified for VAT purposes, identify misclassifications, and provide practical recommendations to align your accounting, invoicing and VAT returns with UAE VAT law.
Overview
AL SAHRAA provides a focused VAT treatment review to determine the correct VAT classification of goods and services you supply in the UAE. We assess zero-rating, exemptions, standard-rating, place of supply rules, import/export treatment and special cases (vouchers, mixed supplies, related-party transactions). Our approach combines a detailed review of contracts, invoices and commercial practices with current Federal Tax Authority guidance to produce clear, documented recommendations you can implement. We highlight adjustments needed in accounting, invoicing and ERP posting to reduce future return errors. Deliverables include a supply classification memo, suggested invoice wording and templates, recommended accounting code changes and an implementation checklist. We also advise on how findings may affect past returns and what corrective steps or disclosures could be needed. This service is practical for businesses of any size operating in Dubai, Ajman and across the UAE, especially those with cross-border sales, complex service arrangements or frequent product changes.
What to prepare
- VAT registration certificate (if applicable)
- Sample tax invoices, credit notes and debit notes
- Sales contracts, service agreements and purchase orders
- Import/export documents, shipping contracts and customs declarations
- Customer and supplier master data showing location and GST/VAT status
- ERP or accounting mapping screenshots and sample chart of accounts
How the process works
- Initial consultation to understand activities, supply mix and jurisdictions
- Document collection: contracts, invoices, purchase orders and import/export records
- Detailed classification review against UAE VAT law and FTA guidance
- Prepare classification memo with recommendations, invoice wording and accounting codes
- Deliver implementation checklist and optional training for accounts staff
- Follow-up support for adjustments or queries during filing/FTA engagement
Why clients choose AL SAHRAA
- Admin-reviewed quotations before you proceed.
- Document coordination and progress tracking in one portal.
- Support for business, compliance, visa, insurance, and IT-related requests.
- Clear request history, updates, and delivery follow-up.
Frequently asked questions
Why is supply classification important for VAT?
Correct classification determines the VAT rate, place of supply, and whether a supply is zero-rated or exempt, which affects tax liability, cash flow and compliance with FTA rules.
How long does a VAT treatment review usually take?
Typical reviews take 5–15 business days depending on complexity and volume of documentation; timelines are confirmed after the initial consultation.
Will the review tell us if we need to amend past VAT returns?
We will identify potential historical misclassifications and advise on the need for voluntary disclosure or corrections based on materiality and FTA guidance, but we do not file amendments unless engaged to do so.
Can you help implement your recommendations in our accounting system?
Yes — we provide recommended accounting codes and an implementation checklist, and can provide hands-on support or training as a follow-on engagement.
Do you handle cross-border supply and place of supply issues?
Yes — we assess place of supply rules for cross-border sales and imports/exports to determine correct VAT treatment and any documentation needed to support zero-rating.
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