The VAT is levied on the consumption or use of goods and services and the end-consumer is the ultimate bearer of the cost. UAE imposes VAT on tax-registered businesses at a rate of 5% on a taxable supply of goods or services at each step of the supply chain. However, businesses collect and account for the VAT on behalf of the government.
Business owners in UAE need to get their companies registered under the VAT in accordance with Federal decree-law No. 8 of 2017 on VAT and the Cabinet Decision (52) of 2017 on the executive regulations of the Federal Decree-Law No. (8) of 2017 on VAT. The VAT applies equally to tax-registered businesses managed on the UAE mainland and in the free zones.
It is mandatory for businesses with taxable supplies and imports worth AED 375,000 (USD 100,000) and above to apply for VAT registration. As per the UAE VAT law, businesses with taxable supplies and imports between AED 187,500 and 375,000 are allowed to make a voluntary application for VAT registration. However, those businesses whose taxable supplies and imports are below AED 187,500 are not required to file for VAT registration. The application for VAT registration can be made online but businesses can seek the services of VAT Consultants in UAE for the proper execution of the process.
Once a business is registered, it will need to charge VAT on all goods and services that it provides, unless it qualifies for an exemption. The current rate is 5%. The businesses will also need to keep records of all VAT transactions and file quarterly returns with the FTA.
The registered taxpayers can also reclaim any VAT paid on goods and services that has been purchased or availed for its business (subject to specific recoverability conditions). This is known as input tax. The registered taxpayers will need to keep records of all purchases made so that they can claim back the VAT paid.
If you are thinking of registering for VAT, or if you have any questions about how VAT works, our team of experts at GBS DMCC can help. We offer a free initial consultation to discuss your specific needs and requirements. Contact us today to learn more about our VAT advisory services.
If you are expanding your business into the UAE, it is important to be aware of the Value-Added Tax (VAT) that has been introduced in 2018. As a business owner, you will need to ensure that your accounting and bookkeeping systems are compliant with the new VAT requirements. One will also need to provide training to his/her employees on how to correctly implement the new VAT system.
The team at our VAT advisory firm can help you with all aspects of VAT implementation and training. We can assist you in setting up your accounting and bookkeeping systems, as well as providing employee training on VAT compliance. We can also help with any other VAT-related questions or concerns that one may have. Contact us today to learn more about our services or to schedule a consultation.
If you are registered for VAT, you must file a VAT return with the Federal Tax Authority (FTA) every 3 months, unless you have been approved for annual or monthly filing.
VAT returns show how much VAT you have charged to customers and how much VAT you have paid to suppliers. If the amount of VAT you have paid is more than the amount of VAT you have charged, the FTA refunds the difference. If the amount of VAT you have charged is more than the amount of VAT you have paid, you will need to pay the difference to the FTA.
We can provide advice on a range of tax aspects, including:
How GBS Helps
As a business owner, you are always looking for ways to improve your bottom line. One way to do this is to make use of Value-Added Tax (VAT) advisory services. These services can help you plan your taxes and improve your overall financial management.
VAT advisory services can help you in a number of ways. First, they can help to claim refunds and exemptions that one may be entitled to. Additionally, VAT advisory services can help businesses develop more efficient and effective systems for managing their VAT payments. Finally, we can provide guidance on how to comply with the VAT regulations.
Our business serves as a one-stop shop for all types of corporate services. Many people and corporations have received assistance from Global Business Services on VAT advisory services. Get in touch with us via call or email!
Furthermore, we offer professional and affordable services for business setup in Dubai and other emirates in UAE. We have a team of experts to provide you with accounting services in UAE, ESR services, Shared CFO, UBO Declaration, UAE Corporate Tax, AML in UAE and onshore (Free Zone) or offshore company formation in the UAE.
Call us at 050-1894959 or email at email@example.com to learn more about the VAT compliance in the UAE.
Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal, tax or other professional advice. We do not accept any responsibility, legal or otherwise, for any errors or omissions.