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VAT Consultants in UAE as One of best VAT Consultancy services in UAE
We are providing VAT consultancy services in UAE like initial VAT registration services in Dubai with FTA, VAT system assessment and implementation, UAE VAT consultancy, UAE VAT advisory, UAE VAT return preparation and UAE VAT return submission services along with other specific request for VAT consultancy services in Dubai. We are also providing the FTA approved tax agent services in UAE where our tax agents approved by FTA will take the responsibility of VAT returns filing services in UAE and all your VAT return filing will be shifted to us. Our VAT consultants in UAE are well educated, trained, experienced and equipped with all the necessary skills required for a successful service.
Our VAT consultants in Dubai are having diverse educational and geographical backgrounds which benefit our clients to plan their VAT strategies not just to benefit in UAE but to align their home country taxation rules as well. By managing a large portfolio of clients from different industries, locations and regulatory systems, our Dubai VAT consultants in UAE will suggest the best industry practices and practical solutions.
OUR CORE SERVICES RELATED TO VAT
UAE VAT Registration with FTA
UAE VAT Return Filing
UAE VAT Audits
UAE VAT Consultation
VAT Accounting for UAE
VAT Software Implementation Consultancy
Designing of tax codes based on all possible tax scenarios (Implementation in SAP Module)
UAE VAT Impact Assessment
VAT service package
With the introduction of VAT in UAE, the regulatory and legal requirements are increased for all the businesses. Either you are a new start up or an established business, your accounting records should be properly managed and VAT returns should be filed on time and in compliance with the UAE VAT Law which requires that someone with the good UAE VAT experience should take care of this task. Large and medium size businesses can afford to hire in house staff but small size companies can not afford this. But nothing to worry, we can take this role for your organization at a very reasonable service fee. We have designed accounting and VAT consultancy packages especially keeping your business in mind. These packages start with AED 500 onward. We assure you the best value for the money.
Basic VAT Introduction
VAT was introduced in the United Arab Emirates on 01 January 2018. The rate of VAT is 5% for all taxable supplies except exempt and zero-rated supplies. Every business, which meets specific criteria stipulated by Federal Tax Authority (FTA), must register for VAT.
VAT-registered businesses generally:
must charge VAT on taxable goods or services they supply
may reclaim any VAT they have paid on business-related goods or services
keep a range of business records which will allow the FTA to check that they have got things right.
VAT-registered businesses must report the amount of VAT they have charged and the amount of VAT they have paid to the government on a regular basis by VAT Return filing in UAE.
If a VAT registered business has collected more VAT in UAE than they have paid VAT in UAE, they have to pay the difference to the FTA. If the VAT registered business has paid more VAT than it has charged, the business can reclaim the difference.
Dubai VAT Consultants
VAT will apply on the supply of goods and services in the UAE (including imports) by a taxable person for consideration and during the course of business, except on the exempt goods and services as specified under the UAE VAT Law.
Tax Rate and Implementation:
VAT is implemented across the UAE from 1 January 2018 at a standard rate of 5% on any supply or import of goods or services.
VAT will be charged at 0% for the following main categories of supplies:
Exports of goods and services outside of the GCC countries;
International transportation, and related supplies;
Supplies of 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;
Supply of certain education services, and supply of relevant goods and services;
Supply of certain healthcare services, and supply of relevant goods and services.
The UAE VAT Law exempts the following supplies from VAT:
Financial services as specified in Executive Regulations
Supply of residential buildings through sale or lease (except those which are specifically zero-rated);
Supply of bare land;
Supply of local passenger transport.
Note that while no VAT is payable on exempted supplies, the supplier cannot claim any deduction for input tax already paid from the FTA.
Place of Supply:
The place of supply determines whether a supply is made in the UAE or outside the UAE. As such, if the supply is treated as made outside the UAE, VAT is not chargeable. However, if a supply is made in the UAE, VAT may be chargeable.
In relation to goods, the basic rule is that the place of supply is the location of goods when the supply takes place subject to special rules applying to certain categories such as water & energy and cross-border supplies. Accordingly, VAT is chargeable for domestic supplies and exports. In the case of business-to-business imports into the UAE from outside the UAE, the recipient accounts for VAT under the reverse charge mechanism (explained below).
In relation to services, the place of supply is where the supplier has the place of residence subject to specific rules applying to real estate, transport, telecommunications, and cultural, artistic, sporting or similar activities. In cases where a VAT registered person imports services into the UAE which would be subject to VAT if purchased in the UAE, the VAT registered purchaser must account for VAT under the reverse charge mechanism.
Taxable Person and Mandatory Registration:
Taxable person means any person (corporation or not) conducting an economic activity for the purpose of generating income and whose value of the annual supplies in the UAE exceeds the mandatory registration threshold over the previous 12-month period or is expected to exceed the mandatory registration threshold in the next 30 days. Currently, the threshold for mandatory registration is set at AED 375,000.
Voluntary Registration for VAT in UAE:
A business may still apply to register for VAT if they do not meet the mandatory registration criteria if value of annual supplies in the UAE exceeds the voluntary registration threshold over the previous 12-month period or is expected to exceed the voluntary registration threshold in the next 30 days. Currently, the thresholds for voluntary registration is AED 187,500.
Under the UAE VAT Law, businesses that are related or associated parties may be able to register as a VAT group which could be a useful tool to simplify accounting for VAT.
Reverse Charge Mechanism:
This is a mechanism under which the recipient of goods or services is required to pay VAT instead of the supplier, when the supplier is not a taxable person in the UAE where the supply has been made. This would generally apply to cross-border business-to-business transactions to relieve a non-resident supplier from the requirement to register and account for VAT in the country of the purchaser. As such, the taxable person will account for VAT on its normal VAT return and may be able to claim that VAT back on the same return, subject to the normal VAT recovery rules.
Stay up-to-date: The FTA has launched a website, www.tax.gov.ae, which sets out the key updates in relation to the VAT.
VAT Related News and Updates