What is VAT? Consultancy Services are required for your business in the UAE? The United Arab Emirates introduced a new indirect tax known as value Added Tax (VAT) at the beginning of January and has the rate of 5 percent on services and goods. The VAT policy adopted in the GCC countries may expand the economic scope of countries, by integrating another source of revenue following the crisis in oil. The new revenue source is intended to be utilized for top-quality public services through the shift towards a more sustainable consumption model. It is also designed to decrease the dependence of the government on hydrocarbons, including oil, as sources of revenue. Learn more about the necessity of VAT consulting services for businesses in the UAE. What is VAT? Value Added Tax, also known as VAT is a tax that is imposed on the purchase or use of services and goods at every place of sale. The people who pay the cost will eventually become the final consumer. With the assistance of the Government, companies are required to collect and pay the tax. A taxable supply is the distribution of services or goods by an organization located in the UAE which is taxed at 5 percent or zero percent. Imports are also considered when they are taxable as a sale of the items or services would be tax-deductible in the UAE. Services offered via VAT Consultants The services offered by VAT consultants are contingent upon the type of business. The archetypal duties of a VAT consultant consist of: Control and compliance with VAT Reduce VAT liability by identifying risk and the right solutions. Find potential tax planning possibilities File VAT and pay. Record and Organize Data Accounting & Bookkeeping. Purveyor organization. Client-facing organization. VAT Registration Process The basic idea is that a company could choose to use one of the two kinds of VAT registration procedures that is mandatory registration and voluntary registration. A qualified VAT advisor can help businesses to be VAT registered based on the value of all their taxable imports and supplies. The threshold for compulsory registration of a company is AED 375,000 The threshold for registration by the voluntary business will be AED 187,500. However, the threshold for mandatory registration cannot be applied to foreign-owned companies. How do I register for VAT? After registering an account companies can then register for VAT using the e-Services portal available on the FTA website. The FTA has created a 24-hour user-friendly system for filing Tax returns as well as paying tax through tax-paying via the e-Services portal. Engaging a trustworthy VAT expert in the UAE will help you to efficiently complete the numerous VAT-related activities including VAT accounting and VAT registration and deregistration of VAT, keeping correct documentation for VAT return filing and tax consulting tax accounting and VAT impact studies, and more. With a greater understanding of the processes of VAT. They are aware of the correct method to use for UAE tax registration. This is why we are an excellent option for businesses to ensure compliance with the VAT laws of the UAE. Responsibilities of VAT Consultants The main duties of a VAT consultant can differ from one case to the next. Some of the primary duties of a tax consultant comprise: Maintain a proper book of accounting and records of a company Complete VAT submission requirements to ensure VAT compliance UAE Federal Rules Why should you employ an expert in VAT? A lot of businesses aren’t aware of what rules and guidelines apply to the process that governs VAT calculation as well as the method of paying. Consulting VAT consultants can help solve complicated formulas, complex figures, and calculations. Other benefits of hiring VAT consultants are: Greater Know-how: The most competent VAT experts have deep knowledge of VAT-related regulations, procedures, and regulations. VAT specialists who are knowledgeable about VAT laws and rules are able to help taxpayers understand the various rates of VAT and the proper tax calculation. accuracy: Unlike our in-house accountant, VAT consultants put in the extra effort to ensure that each VAT tax file is precise. Experiential Experience in Industry The qualified VAT expert with many years of experience can assist you in making sure that you avoid the most common mistakes made in the VAT process, filing returns, and other similar actions. Efficiency: Employing a reputable VAT expert can help you reduce the amount of time that you have to spend on VAT analysis, assessments, and risk analysis for your company. Risk reduction: A well-trained VAT advisor is equipped to manage all types of business risks. They will be able to suggest the most effective options to minimize the risks that are associated with VAT. Improved method of financing: Financial assessment, calculations, and evaluations require careful consideration. Therefore, it is always recommended to get advice from experts in VAT to get advice on finances. The VAT Consultancy Services in UAE As one of the top VAT consultancy services in the UAE, We provide many VAT-related services, including: VAT considered Accounting & Bookkeeping Review of Purchase Invoices Examining Sales Invoices to ensure compliance with FTA Rules and Regulations Internal VAT Audit Assistance with filing your VAT Return Assistance in the process of paying to FTA Tax consultancy services VAT registration VAT Training Revenue Report Preparation and Preparation for FTA submission
This guide is prepared to help you navigate through the Federal Tax Authority (FTA) website and successfully complete your Value Added Tax (VAT) vat registration form. It is designed to help you:create an e-Services account with the FTA (you will need to do this before you can register for VAT);provide accurate answers to the questions on your VAT registration form by explaining what information you are required to provide; andunderstand the icons and symbols you might see as you complete the registration form. You should find that setting up an e-Services account is similar to setting up other online accounts. The VAT registration form is also designed to be straight-forward and wherever possible it will auto-complete information for you. If you need help setting up your e-Services account or have questions on specific fields in the VAT registration form, please contact us.