VAT Services in UAE
The introduction of Value Added Tax (VAT) in UAE, a traditionally TAX-free jurisdiction, brings with it a lot of opportunities and an equal amount of challenges. It is one of the most complex and onerous tax systems that companies find difficult to cope with. A trained professional who can guide you on the Do’s and Don’ts of the system and who can act as a mediator between you and the Federal Tax Authority is more than mandatory. They will help you through the various phases of VAT implementation in UAE and will also aid in achieving tax compliance, carrying out legal activities, managing records and preparing and filing VAT return. They are reliable and ethical; but you need to ensure that you appoint the right one.
VAT in UAE
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 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. Ably supported by our international team, the HLB HAMT team will assist you to steer your business smoothly through the new tax laws.
Everything you need to know about VAT
- 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
- 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 – sale and lease
- Bare land – sale and lease
- Local passenger transport
VAT Services we offers
HLB HAMT is equipped with a team of thriving VAT specialists who can help your business overcome expected roadblocks such as lack of familiarity with VAT rules & regulations, structure and compliance issues, lack of resources (availability of experts and competent staff) and lack of a robust book keeping system.
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.
Awards and testimonials
BEST AUDIT FIRM OF THE YEAR 2015
DMCC Top Performing Consultants 2016