VAT Services in Dubai 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 the Kingdom of Saudi Arabia.
Like any new legislation, there are always challenges that businesses face while preparing themselves for VAT. We have an exclusive team of trained VAT Consultants in Dubai/UAE. Ably supported by our international team, the HLB HAMT team will assist you in steering your business smoothly through the new tax laws.
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A Glance into our VAT services in UAE
VAT Transaction Analysis
VAT Transaction Advisory Service basically refers to the examination of a single business transaction to determine if UAE VAT is applicable. Such services are exclusive to a company to continue operations without any difficulties in the long run.
When filing for VAT in Dubai, firms must adhere to strict VAT regulations. A firm must register for VAT if its yearly revenue exceeds AED 375,000, according to VAT laws.
VAT Impact Analysis
Almost every part and operation of the firm has been influenced by VAT. As a result, it is now up to corporate organizations to evaluate the impact of VAT on their operations. The following are some of the key elements to examine in the first impact research, which might be handled by professionals with a thorough understanding of VAT ideas.
- Recognizing how VAT affects critical corporate activities including cash flow, procurement, and standard operating procedures.
- Understanding the VAT-related contract/agreement amendment requirements.
- Recognizing the difficulties of transition.
- Recognizing the implications for registration and responsibility.
UAE FTA Audit Assistance
A tax audit is a procedure carried out by the Federal Tax Authority (FTA) to review the commercial records or any information or data of taxable people conducting business in the UAE, according to the Tax Procedures Law (Federal Decree-Law no. 7). An FTA audit is the government’s review of a business’s taxable entity responsibilities. This audit, which is carried out by the FTA in the UAE, guarantees that all liabilities are settled and all tax dues are recovered and delivered to the government within the period specified.
VAT Periodical Return Review Assistance
A VAT Return, often known as a ‘Tax Return,’ is a periodic declaration that must be submitted to the authorities by a registered individual. The typical filing time for VAT returns will be quarterly. The authority may, however, require particular types of enterprises to file the VAT return on a monthly basis in order to limit the possibility of tax evasion and enhance regulation and supervision.
All enterprises listed under the FTA are obliged to file a VAT return, detailing the sales and purchases made during the taxable period. The amount paid to the supplier for purchases or costs is known as input VAT, whereas the amount collected on sales is known as output VAT. On a VAT return, if the input tax is higher than the output tax, the taxpayer can claim a VAT refund after submitting the return.
VAT Historical Return Review
A VAT return is a statement that explains all of your sales and purchases within a certain tax period. This document must be prepared and submitted using the FTA e-portal using your receipts.
In the UAE, every qualified taxpayer is obliged to create and submit a VAT return once every tax period. Based on the prescriptions issued by the FTA on your VAT certificate, the tax term is either a month or a quarter.
Voluntary Disclosure Submission
A voluntary disclosure is a document given by the Federal Tax Authority (FTA) that allows companies and taxpayers to alert the agency of errors, omissions, or modifications in a tax return or refund. In the UAE, a VAT Voluntary Disclosure Form 211 assists a taxable person in correcting mistakes made when filing a VAT Return or requesting a VAT Refund.
The implementation of tax reconsideration submission option is to resolve the issues of firms that are dissatisfied with the FTA’s fines and judgments. If the taxable person’s petition for reconsideration is legitimate, the FTA is quick to adopt the taxable person’s disputes about the consequences and to change its prior judgment. The VAT Reconsideration submission is a request application filed to the FTA by a tax agent, coupled with sufficient reason to think that the fine or other conclusions should be amended.
Appeal to the TDRC
The initial stage for taxpayers who disagree with the Federal Tax Authority (FTA) is to file an ‘Application for Reconsideration.’ After that, you can file an objection with the Tax Disputes Resolution Committee (TDRC). To continue forward with this procedure, taxpayers will require the assistance of knowledgeable and professional UAE tax advisers.
In the United Arab Emirates, VAT is levied on the purchase and sale of taxable goods and services. The normal VAT rate in the nation is 5% at the moment. A VAT-registered firm collects VAT on behalf of the UAE Federal Tax Authority (FTA), and as a result, it is able to recover VAT paid on business costs for items and services.
When taxable firms expire or cease to engage in taxable supply, VAT deregistration is required by UAE VAT legislation. VAT deregistration in the UAE entails the disabling of a company’s VAT registration and the removal of its tax registration number (TRN). If the FTA is convinced with the submitted cause, the VAT registration UAE may be cancelled as soon as a firm quits to trade.
VAT Group Amendment
The relevant member can propose that a member be removed from the tax group by submitting a VAT group change application to the FTA. If the deleted member is qualified and needed to register but has never done so, they may be requested to complete out a VAT registration application.
In the UAE, VAT became effective on January 1, 2018. VAT (Value Added Tax) is a sort of indirect tax that is also classified as a consumption tax. Businesses with a yearly turnover of AED 375,000 or more must register for VAT in the UAE under the UAE VAT law’s Executive Regulations and take the appropriate steps to implement VAT-compliant solutions into their activities.
VAT Transaction Advisory
VAT Transaction Advisory Services entails advising a company on certain sector transactions. It is more significant when the entity has a broad range of transactions including several goods, services, geographical locations, and branches. By identifying risk factors, working capital, IT support, and other procedural modifications in a timely manner, consulting services may help companies reduce their efforts.
Advisory for VAT Designated Zones
A Designated Zone is any region declared by Cabinet Decision as being outside the UAE for the purposes of Value Added Tax (VAT). Territories that have been designated to provide commercial advantages. According to Cabinet Decision No. (59) of 2017, 20 zones have been specified as designated zones for the purposes of the Federal Decree-Law No. (8) of 2017 on Value Added Tax.
TAX Code Mapping
The Federal Tax Authority (FTA) and the UAE Customs Departments have teamed together to collect VAT on items imported into the UAE. In order to release imported products, all VAT-registered enterprises must present the Tax Registration Number (TRN) to the customs department. If the Tax Registration Number (TRN) in the customs system is updated and proven to be legitimate, the customs department will enable enterprises to pass imported products without paying VAT at customs.
VAT Accounting Records Compliance
The law governing VAT in the UAE outlines the accounts and records that must be kept by all registrants in the nation. The law also defines the length of time that bookkeeping records for supplies made and received must be kept.
VAT introduction in the UAE necessitates extensive preparation. The VAT training is appropriate for those in sales and purchasing, accounts, tax departments, payable and receivable accounts, finance managers, CEOs, and entrepreneurs, among others.
Frequently Asked Questions – VAT Services in UAE
What does VAT stand for?
VAT (Value Added Tax) is considered a sort of consumption tax. Most purchases and sales of goods and services are subject to VAT.
Will VAT be applied to all goods and services?
Unless explicitly exempted or excused by law, VAT will be applicable to the vast majority of goods and service activities.
What is the normal VAT rate in the United Arab Emirates?
In the United Arab Emirates, the usual VAT rate is 5%.
Why is VAT being implemented in the UAE?
VAT will offer a new stream of revenue that will help to ensure that significant public services are provided in the future. It will also assist the government in achieving its goal of lessening reliance on oil as a revenue generator.
What are the obligations of businesses when it comes to VAT?
Businesses those are VAT-registered in general:
- They are required to charge VAT on taxable products and services they provide;
- They can refund any VAT paid on products or services used in their business;
- Maintain a variety of VAT-related business documents (for example, tax bills);
- VAT returns must be filed on a regular basis to reflect taxable supplies and purchases.
What measures does the government use to collect VAT?
Businesses are accountable for meticulously recording their revenue, expenses, and VAT rates. Registered firms and merchants charge VAT at the current rate to all of their clients and incur VAT on goods and services. The difference between these amounts is either recovered or remitted to the government.
Will tourists have to pay VAT?
Yes, visitors are a revenue generator for the UAE, and they will be required to pay VAT at the time of sale. However, on satisfying stated conditions they can get refund under Tourist Refund Scheme.
What should a company do to get ready for VAT?
To satisfy their tax responsibilities, businesses will have to meet specific conditions. Businesses must evaluate the VAT influence on their company operations, financial planning and bookkeeping in order to completely adhere to VAT.
Is it necessary for non-residents to apply for VAT?
Non-residents who generate taxable supplies in the UAE must register for VAT unless another UAE resident individual is authorized to account for VAT on these supplies.
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