Value Added Tax (VAT) was introduced in the UAE on January 1, 2018, as a tax on consumption. VAT registration is mandatory for businesses with an annual turnover of AED 375,000 or more, while businesses with an annual turnover of less than AED 375,000 may register for VAT voluntarily. During the registration process, businesses must provide accurate information about their turnover, expenses, and other financial details. Once registered, businesses must charge and collect VAT on taxable supplies and pay the collected VAT to the Federal Tax Authority ,FTA. They must also file regular VAT returns with the FTA and pay any outstanding VAT owed. Failure to register for VAT or comply with VAT regulations can result in penalties and fines. It’s important for businesses to keep accurate records and maintain proper documentation related to VAT transactions to ensure compliance with VAT regulations in the UAE.