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VAT

What is VAT?

GCC countries have decided to implement Value Added Tax in the entire region through a treaty signed by all member countries. UAE has already implemented the VAT laws and regulations with effect from January 1, 2018, along with the Kingdom of Saudi Arabia.

Like any new legislation, there are always challenges that businesses face while readying themselves for VAT. We have an exclusive team of trained Tax consultants in UAE.

what is vat

VAT Services we offers:

Our special VAT consultancy services in UAE involves providing an understanding of the Tax Laws and Executive Regulations, understanding your business model and evaluation of VAT’s impact on your business, providing inputs using VAT compliant software, exclusive VAT bookkeeping assistance, helping you to prepare and execute all VAT related communication to your trade partners and providing strategic inputs for conducting your business in the post-VAT age.

Tax Reduction Related To Costs

Applicability

  • If your annual turnover exceeds the mandatory threshold limit of AED 375,000, then you are liable to pay tax.
  • Optional registration threshold limit is AED 187,500/- per year, where, any business person can voluntarily register for VAT and continue with the normal compliance process.

Rates of VAT

The types of rates applicable are:

  • Standard rate
  • Businesses registered under UAE VAT will be levied 5 percent tax.
  • Zero rate

Zero-rated Industries

  • Exports of goods and services outside the UAE
  • International transportation, and related supplies
  • Supplies of the certain sea, air and land means of transportation (such as aircrafts and ships)
  • Certain investment grade precious metals (e.g. gold, silver, of 99% purity)
  • Newly constructed residential properties, that are supplied for the first time within 3 years of their construction

We will guide your Finance and Accounts team and update them with up-to-date progress concerning VAT. Additionally, our VAT consultants will assist your team in developing your internal VAT operations, involving finance management and bookkeeping operations, in tune with the VAT system requirements.

Areas exempted from VAT

  • Supply of certain financial services
  • Residential properties (Only for 3 years of completion or from the second supply)*
  • Bare land – sale and lease
  • Local passenger transport

VAT Services

VAT Consultancy Services

  • Providing an understanding of the Tax Laws and Executive Regulations to client companies.
  • Understanding your business model and evaluation of VAT impact on your business.
  • Providing inputs for using VAT compliant software for your company.
  • Exclusive VAT bookkeeping assistance.
  • Providing training to your staff on VAT.
  • Support for VAT registration for your company as individuals or as tax groups.
  • Helping you to prepare and execute all VAT related communication to your trade partners.
  • Providing strategic inputs for conducting your business in the post-VAT age, addressing aspects like pricing, working capital, marketing & communication etc.

VAT Audit Services

Our VAT review will result in a thorough and critical evaluation of the VAT accounting and return filing by the entity in line with the guidance note issued by the Federal Tax Authority on document maintenance, tax collection, payment, input tax claim, etc. A subsequent report is issued based on the agreed-upon procedures as per the international standards, for future reference by the organization.

VAT return filing procedures

  • Compliance on Record Keeping:

Random review of document maintenance by the entity as per the guidelines provided by the Federal Tax Authority in United Arab Emirates to ensure that compliance is adhered with.

  • Compliance on VAT Return Filing in UAE:

Preparing VAT Return as per the regulations issued by the Federal Tax Authorities, in the prescribed format. Such return shall be prepared based on accounting records maintained by the entity.

Aiding and advising on file VAT return in UAE with Federal Tax Authority (FTA). This would primarily be a formal submission from the entity at the prescribed portal issued by the Federal Tax Authority.

TAX Agent Services

  • Achieving tax compliance
  • Carrying out legal activities
  • Managing records
  • Preparing and Filing VAT return
  • Dealing with FTA post Penalization
  • VAT return Filing
  • Retaining books of accounts
  • Addressing adhoc queries

Guides, References & Public Clarifications

The Federal Tax Authority provides you with a set of guides, clarifications and references that will help you understand your tax obligations.

  • Education Sector (Schools and Nurseries) Full Guide
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