#vatupdate

TAX Consultant Services in Dubai

The UAE continues to refine its tax framework to align with global best practices, and new VAT rule changes coming into effect from January 2026 are set to impact both buyers and sellers across multiple sectors. Businesses that act early will avoid compliance risks and cash-flow disruptions.

This article breaks down what these changes mean, who will be affected, and guides how to prepare effectively.

What’s Changing in UAE VAT from January 2026?

While VAT in the UAE remains at 5%, the rules around application, reporting, and responsibility are evolving. The focus is on greater transparency, stronger enforcement, and clearer treatment of complex transactions.

Key areas expected to see updates include:

VAT treatment of real estate transactions

Clarifications on buyer vs seller VAT obligations

Stricter documentation and reporting requirements

Enhanced audits and penalties for non-compliance

Improved alignment with international VAT standards

These changes aim to reduce ambiguity and ensure fair tax collection across the market.

What Buyers Need to Know

Buyers—especially property investors and business purchasers—will need to be more vigilant from 2026 onward.

Key points for buyers:

VAT responsibility may shift depending on the transaction type

Incorrect VAT treatment can lead to unexpected tax liabilities

Due diligence on seller VAT registration becomes critical

Input VAT recovery rules may be more closely scrutinized

Failing to understand VAT obligations at the purchase stage could result in higher costs later.

What Sellers Must Prepare For

Sellers will face greater compliance expectations and accountability.

Important considerations for sellers:

Correct VAT classification of goods and services

Timely VAT invoicing and reporting

Clear contracts defining VAT responsibility

Strong record-keeping to support VAT filings

Increased risk of audits and penalties for errors

Businesses that rely on outdated VAT practices may face compliance gaps under the new rules.

Why Early Preparation Matters

Waiting until 2026 is risky. Businesses should start preparing now to:

Review existing VAT structures

Update contracts and invoicing processes

Train internal finance teams

Seek professional VAT advisory support

Early action ensures smoother transitions and protects profit margins.

How a Dubai Consultant Can Help

Dubai Consultant specializes in helping businesses and investors navigate UAE tax regulations with clarity and confidence. Our VAT advisory services include:

VAT impact analysis for buyers and sellers

Transaction-specific VAT guidance

VAT registration and compliance support

Documentation and reporting assistance

Ongoing advisory to stay aligned with regulatory changes

With expert guidance, businesses can stay compliant while focusing on growth.

Final Thoughts

The UAE VAT changes in 2026 are not just regulatory updates—they are a signal for businesses to strengthen their tax foundations. Buyers and sellers who prepare early will avoid surprises and gain a competitive edge.

Dubai Consultant | Company Formation  | TAX Consultant

The Federal Tax Authority( FTA) has issued an explanation on how Value Added Tax(VAT) applies to deals involving sports players, trainers, and affiliated contracts in the UAE. This new update aims to remove nebulosity around VAT treatment in the sports sector, ensuring fair and harmonious compliance for clubs, agents, and professionals alike.

⚖️ Why was the explanation demanded

Over recent times, the UAE’s sports industry — particularly football, justice, and emerging professional leagues has seen rapid growth. With further player transfers, auspices, and performance-grounded contracts, the operation of VAT on sports-affiliated deals had become an Argentine area for numerous realities.

Questions frequently arose similar to:

Should VAT be charged on player transfer fees?

Are guiding contracts taxable services?

What about auspices or prize plutocrat?

The FTA’s new guidance provides clear rules to help resolve these issues and ensure the sector’s smooth duty compliance.

📋 Key Points from the FTA explanation

VAT applies to the force of Services

Still, those services are subject to VAT at the standard rate( presently 5), provided the supplier is VAT-registered, if a player or trainer provides services under a contractual agreement.

This includes stipend, lagniappes, and performance-grounded payments entered as part of a taxable force.

Player Transfer freights

Transfer freights paid between clubs for player movement may fall under VAT if the sale involves the force of a taxable service.

Clubs must assess whether the sale qualifies as a business-to-business ( B2B) force within the UAE or as an across-border service, which can change the VAT counteraccusations.

Backing and Countersign Deals

Any marketable agreements, similar to image rights, auspices, or brand collaborations, are considered taxable inventories if made by a VAT-registered individual or entity.

VAT Registration Requirement

Players, agents, and trainers earning above the AED 375,000 periodic threshold must register for VAT and misbehave with reporting scores.

Pure or Zero-Rated scripts

transnational transfers or services handed outside the UAE may qualify for zero standing, depending on the sale structure and place of force.

🏟️ Impact on Clubs, Agents, and Athletes

The explanation brings much-demanded certainty to fiscal planning and contract accommodations in sports.

Clubs must review their player and guiding contracts to ensure VAT compliance and proper invoicing.

Agents need to understand whether their commissions or service freights fall under taxable inventories.

Athletes should confirm whether their backing income or transfer-related payments are subject to VAT.

Overall, this clarity reduces the threat of non-compliance penalties and helps maintain transparent fiscal practices in the assiduity.

📊 A Step Toward Greater Translucency

The UAE has been visionary in enriching its duty framework since introducing VAT in 2018. This rearmost explanation reinforces the FTA’s commitment to increasing clarity, fairness, and translucency across all sectors, including the rapidly growing sports industry.

By setting clear boundaries on VAT operation, the FTA helps professional sports realities align with global duty norms while supporting the UAE’s position as an indigenous sports hub.

💬 Conclusion

The FTA’s explanation on VAT for sports player deals is a timely and practical step toward simplifying compliance for clubs, agents, and athletes.

As the UAE continues to attract global sporting interest and investment, clear duty guidance ensures the assiduity’s sustainable and transparent growth.

The New Saudi Arabia VAT Refund for Tourists Explained

Imagine exploring the ancient wonders and vibrant culture of Saudi Arabia—and now, getting a little extra back in your pocket! Starting April 18th, 2025, tourists visiting the Kingdom can claim a 15% refund on their purchases through the Saudi Arabia VAT refund program. Read on to discover how this exciting new initiative makes your Saudi Arabian journey even more rewarding.

To dive deeper, check our full post on Saudi Arabia VAT refund for tourists.

What the Saudi Arabia VAT Refund Means for Tourists

Under the new regulation by the Zakat, Tax and Customs Authority (ZATCA), tourists are now eligible for a 15% VAT refund on eligible goods and services purchased during their stay. This means purchases at participating vendors are effectively zero-rated for tourists at the point of refund.

GCC Travelers Also Benefit

Tourists from Gulf Cooperation Council (GCC) countries, including the UAE, are also eligible under this refund scheme. This unifies the refund process for all non-resident tourists and strengthens tourism integration across the GCC region.

How the VAT Refund Process Will Work

ZATCA will authorize specific service providers to facilitate the refund process. These providers will help tourists submit claims and ensure compliance with the system.

Note: Tourists and refund providers will be jointly accountable for any fraudulent or erroneous claims.

Expected Details from ZATCA

Eligibility criteria for tourists

Qualifying goods and services

Minimum purchase thresholds

Steps to submit a VAT refund claim

Conditions for businesses to become authorized suppliers

VAT Compliance for Saudi Businesses

Transfer Notifications: Notify ZATCA within 30 days of business transfers.

Post-Deregistration Duties: Maintain tax records even after deregistration.

Taxable Transfers: Non-compliant transfers may be taxed as regular sales.

Conclusion

The launch of the Saudi VAT refund program for tourists marks a strategic effort to boost travel and retail activity in the Kingdom. Whether you’re a tourist or a local business, understanding this update is essential to making the most of your journey or operations.

Need help understanding VAT rules in Saudi Arabia or the UAE? Contact Unicorn Global Solutions for expert tax support.

The New Saudi Arabia VAT Refund for Tourists Explained

Imagine exploring the ancient wonders and vibrant culture of Saudi Arabia—and now, getting a little extra back in your pocket! Starting April 18th, 2025, tourists visiting the Kingdom can claim a 15% refund on their purchases through the Saudi Arabia VAT refund program. Read on to discover how this exciting new initiative makes your Saudi Arabian journey even more rewarding.

To dive deeper, check our full post on Saudi Arabia VAT refund for tourists.

What the Saudi Arabia VAT Refund Means for Tourists

Under the new regulation by the Zakat, Tax and Customs Authority (ZATCA), tourists are now eligible for a 15% VAT refund on eligible goods and services purchased during their stay. This means purchases at participating vendors are effectively zero-rated for tourists at the point of refund.

GCC Travelers Also Benefit

Tourists from Gulf Cooperation Council (GCC) countries, including the UAE, are also eligible under this refund scheme. This unifies the refund process for all non-resident tourists and strengthens tourism integration across the GCC region.

How the VAT Refund Process Will Work

ZATCA will authorize specific service providers to facilitate the refund process. These providers will help tourists submit claims and ensure compliance with the system.

Note: Tourists and refund providers will be jointly accountable for any fraudulent or erroneous claims.

Expected Details from ZATCA

Eligibility criteria for tourists

Qualifying goods and services

Minimum purchase thresholds

Steps to submit a VAT refund claim

Conditions for businesses to become authorized suppliers

VAT Compliance for Saudi Businesses

Transfer Notifications: Notify ZATCA within 30 days of business transfers.

Post-Deregistration Duties: Maintain tax records even after deregistration.

Taxable Transfers: Non-compliant transfers may be taxed as regular sales.

Conclusion

The launch of the Saudi VAT refund program for tourists marks a strategic effort to boost travel and retail activity in the Kingdom. Whether you’re a tourist or a local business, understanding this update is essential to making the most of your journey or operations.

Need help understanding VAT rules in Saudi Arabia or the UAE? Contact Unicorn Global Solutions for expert tax support.