VAT Services
As you know Dubai (UAE) is not a tax-free country anymore. Value Added Tax (VAT) is introduced in UAE with effect from 1st January 2018. VAT can be complicated in UAE and needs to be taken care of with experience and knowledge.
What is VAT?
Value Added Tax (VAT) is an indirect tax imposed on the consumption of goods and services. It’s added to every point in the manufacturing and distribution process where the business added value to the product. Organizations need to collect VAT from customers on behalf of government of UAE. The Federal Tax Authority (FTA) was established to manage and collect federal taxes. Any violations in VAT related law could lead to penalties and even criminal charges.
Things to remember about VAT in UAE
- All businesses should not register for VAT. Minimum threshold for VAT is taxable supplies or imports of AED 375,000 or more annually. If your taxable supplier or imports are between AED 187,500 – AED 375,000 you have the option to register for VAT in UAE.
- VAT in UAE is a flat 5% for all taxable goods and services.
- There are some services with VAT rate 0%. Do you know that if you’re exporting to countries outside of GCC VAT rate is 0%.
- There are 4 services exempt from VAT in UAE which includes financial services including insurance services, supply of residential property (sale or lease), vacant land, and local public transportation.
- Amount of VAT you pay to government is the difference between output tax and input tax. Input tax is the amount of money paid by the business when purchasing certain goods. Output tax is the amount money collected from customers as VAT. This exists to avoid double taxation.
Our Services
From VAT registration and filing to advisory and compliance checks, our expert team ensures your VAT processes are smooth and hassle-free.
VAT Registration
In UAE there are mandatory and voluntary VAT registration thresholds. As your VAT consultants we help you determine which activities of the business are taxable supplies for VAT registration purposes. The VAT registration requires a number of documents to be submitted to the Federal Tax Authority (FTA). We help you prepare and submit the documents in a timely manner. Delays in VAT registration could result in penalty charges.
VAT Compliance
As consultants, we will review your business to understand the areas impacted by the VAT regulations. We will focus on areas which are regularly reviewed by the FTA. Our experts will suggest corrective actions to streamline the documentation process and mitigate the risk of a tax audit.
VAT Recovery
As per the VAT law in UAE, if your VAT inputs exceed the VAT outputs you can request a reimbursement from FTA. VAT refund procedure in UAE can be cumbersome as FTA scrutinize the refund application with strict criteria. Chart Consultants will guide you through the process and liase with FTA.
Filing and Preparing VAT Returns
All taxable businesses must file for VAT returns either on monthly or quarterly basis in UAE depending on the size of your company. Any delays or errors can lead to incremental penalties. Chart Consultants can guide you to correctly file for VAT returns and settle any dues to FTA.
VAT Related Consultancy Services
VAT related laws impact each and every business in different ways. Our experts can evaluate your position and advise you accordingly.
VAT Compliant Bookkeeping
As Chartered Accountants, we ensure that clients accounts and documentation such as sales invoices, supplier invoices and payments are recorded according to VAT regulations. You can outsource your entire accounting department or looking for assistance with VAT documentation, we will work with you to create a customized solution that meets your needs.
Why Chart Consultants
Value added tax (VAT) may be new to UAE, it is not new to us. We have over 35 years of experience in handling over 1000+ clientele in VAT and GST. Our experienced and qualified accountants will help you easily understand and comply with the UAE’s VAT and create customized solutions that you are comfortable with. It is our passion to help and guide small and medium scale businesses.
