VAT or Value Added Tax is a form of Indirect Tax that has been put into implementation since January 1, 2018. Since its introduction to the economy, companies in the UAE have had to integrate VAT into their transactions and occasionally faced challenges as well. The experts at Shuraa Tax Consultants help you navigate through the legislative technicalities of VAT laws in the UAE.
Shuraa Tax offers a comprehensive range of VAT services in UAE including but not limited to VAT registration, VAT de-registration, VAT consultations & reconsideration, company audit, voluntary disclosures and more. These aspects of UAE VAT can sometimes be complex and can present challenges to business owners who are unfamiliar with the laws and regulations of a foreign country. However, taxable entities in the UAE are required by the FTA (Federal Tax Authority) to follow their decree if they do not want to incur any form of fines or penalties.
What is VAT or Value Added Tax?
VAT (Value Added Tax) is an indirect tax that is levied on the consumption of goods and services at the point of sale. The cost of paying the tax is to be borne by the end consumer and in the UAE, 5% tax is imposed by the government.
How is VAT implied in the UAE?
Businesses must register for VAT if last 12 months’ taxable supplies, taxable expenses imports exceed the mandatory threshold of AED 375,000 at which point, they will be liable to pay the tax. Additionally, commercial entities can also opt for voluntary VAT registration where the total annual value of taxable supplies & imports (or taxable expenses) during last 12 months is above AED 187,500 which is the voluntary registration threshold.
VAT Services in the UAE
Shuraa Tax Consultants offers a comprehensive range of VAT services in Dubai, UAE. Here are some of the most popular services that UAE businesses require.
VAT Consultation & Advisory
Shuraa offers VAT consultations with our FTA certified tax agents who will analyse the ins and outs of your business operations, the nature of supplies, VAT input & output, applicability of reduced rates and exemptions. They will conduct a thorough assessment of your books, manage your records, how VAT can apply to your business and prepare an analysis report of the changes that are necessary to increase your business’ productivity.
VAT in the UAE is subject to a stringent set of rules and failure to comply can lead to hefty fines. Our custom VAT consultation helps identify the fiscal requirements of your business and curate a suitable solution to them.
VAT Registration
UAE VAT laws decreed that all businesses must mandatorily register for VAT if taxable supplies, taxable expenses and imports are over the mandatory threshold of AED 375,000 or voluntarily if total value of taxable supplies and imports (or taxable expenses) is over the threshold of AED 187,500 during last 12 months or same is expected to achieve in upcoming 30 days. VAT registration helps determine which activities of a business fall under the categories of taxable supplies. Shuraa Tax helps you register for VAT on time without missing deadlines or incurring penalties. They will also ensure you receive your TRN on time to conduct successful transactions.
VAT Compliance
Our expert team guide you through VAT compliance process and necessary reporting. Shuraa tax consultant assist businesses in setting up UAE tax compliance policy. The Federal Tax Authority has issued an authorised VAT invoice format which all companies must follow. Shuraa Tax assists organisations in preparing their VAT invoices and ensure their compliancy with FTA regulations. It is essential that all invoices display the Tax Registration number (TRN) prominently to claim VAT. Compliance assistance facilitates adherence to UAE tax regulations and to avoid hefty fines.
VAT Implementation
Shuraa Tax helps with all aspects of VAT implementation for any commercial entity. This includes conducting a thorough review of the business proceedings and ensure complete compliance with UAE tax and VAT regulations. Businesses will be required to update their accounting systems, generate VAT return files, FTA audit files and more. VAT implementation will also assess the effect of VAT on cash flow.
Book-Keeping
To ensure compliancy with the UAE tax laws it is mandatory for businesses to maintain accurate financial records. This also includes constant updates, detailed records of all sales, purchases and expense transactions. Shuraa Tax helps in all processes including preparing invoices & credit notes while ensuring that it complies with FTA standards. Let us handle the worry of managing your books.
VAT Returns
UAE requires all VAT registered commercial entities to file mandatory VAT returns every month or quarter as stated by FTA. Businesses that register for VAT must file returns and make VAT payments within 28 days after the VAT period ends. Failure to file timely or accurate VAT returns will lead to FTA audits and fines that can dampen the pace of the business operations. Shuraa Tax prevents unnecessary fines and penalties by filing your VAT returns on time.
VAT Refund
VAT generally has two categories: Input VAT and Output VAT. Input VAT is payable for goods & services purchased by a business or taxable person for business use. Output VAT is implemented on goods sold by businesses or taxable entities. In certain scenarios, there is a possibility that business owners end up paying more in taxes than they receive from their financial transactions. Then, business entities are eligible to apply for a VAT refund. Shuraa Tax offers expert advice in the process of acquiring VAT refunds.
Voluntary Disclosure
The Federal Tax Authority provides options for voluntary disclosure in the event where the taxpayer wants to notify the FTA of errors/omissions in the tax return application. Given that the process of voluntary disclosure requires much expertise and has to be processed carefully, it is essential to utilise the services of professionals like Shuraa Tax for accuracy and efficiency.
VAT Auditing
The UAE government conducts regular tax audits to ensure that commercial entities are compliant with all the VAT regulations set by the FTA. VAT Audits are a healthy and regular analysis of your financial records throughout including any refunds or returns you may have submitted. Not only do we help conduct internal audits, but Shuraa also acts as a liaison between your company and government agencies.
All This and More!
A simple way of ensuring that your fiscal requirements are met is by utilising the VAT services in Dubai of professional agents such as Shuraa Tax & Accounting Consultants. Professional UAE VAT experts who offer their expertise in the knowledge of the legal regulations of the country’s tax systems. Therefore, they can offer the proper guidance to businesses for successful VAT implementation and tax compliance.
Get customised VAT services in Dubai, UAE and cherry-pick the services you require. Reach out to us for a free initial consultation and we will walk you through the most impactful and transparent approach for UAE VAT.