VAT Consultancy Services in Dubai, UAE | VAT Consultant
VAT Consultancy Services in Dubai, UAE
We understand that every business faces unique challenges in the competitive market. That’s why our VAT consultancy services are tailored to meet the specific needs of our clients. Our experienced VAT consultant in Dubai guides current and upcoming challenges and analyses each client’s requirements to develop effective solutions. We acknowledge that each business has its tax complexities and issues, and it’s essential to understand VAT laws, regulations, and concepts clearly. Our VAT consultants walk clients through the process and provide all necessary information to ensure compliance. Despite the complexities of the VAT process, our services ensure that businesses stay on the right track. Our team combines versatile taxation services and Dubai VAT consultancy to deliver top-quality solutions for our clients. With their extensive expertise and comprehensive knowledge of VAT registration and a proven track record, VAT consultants in Dubai can resolve all VAT-related issues, such as VAT consulting, VAT registration, VAT training, VAT returns, and compliance with tax laws and regulations.
What is Value Added Tax (VAT)?
The Value Added Tax (VAT) is an indirect tax levied on each transaction in the supply chain, making end consumers responsible for bearing the cost. Registered businesses, acting as tax collectors on behalf of the Federal Tax Authority, must collect and account for the tax. Although it may appear similar to a general sales tax to end-consumers, VAT is a more sophisticated tax system that addresses several challenges that affect the general sales tax.
VAT Consultant in Dubai, UAE
VAT is a form of consumption tax levied on goods and services at the time of purchase. It is a tax imposed on individuals and businesses for the goods and services they acquire.
Farahat & Co. is ready to provide top-notch service at a reasonable price to meet your needs. Following the introduction of VAT in Dubai, VAT consultants have been playing a key role in helping businesses comply with UAE’s VAT laws. The Federal Tax Authority (FTA) is responsible for tax collection and administration, and provides all necessary legislation, including guidance and explanations, to assist businesses.
VAT experts in the UAE offer effective tax planning assistance to business owners, enabling them to manage tax outflows and working capital. VAT consultants in Dubai provide a range of services, including VAT Advisory Services and VAT Compliance services, to help organizations comply with VAT regulations. These services are designed to ensure that businesses operate within the legal framework and avoid penalties or fines for non-compliance.
The VAT Law in UAE
VAT, or Value Added Tax, is a type of tax that is imposed on the consumption or use of goods and services. The ultimate cost of the tax is borne by the end consumer. In the UAE, businesses that are registered for tax are subject to a 5% VAT on taxable goods or services at each stage of the supply chain. These businesses are responsible for collecting and accounting for the VAT on behalf of the government.
By Federal Decree-Law No. 8 of 2017 on VAT and Cabinet Decision on the executive regulations of Federal Decree-Law No. (8) of 2017 on VAT, business owners in the UAE are required to register their companies for VAT.
The VAT applies to tax-registered businesses operating in both the UAE mainland and free zones
VAT Registration Consultant in Dubai, UAE
To comply with UAE VAT law, businesses operating in Dubai are required to apply for VAT registration if the value of their taxable supplies and imports is AED 375,000 (USD 1,000) or more. Companies with taxable supplies and imports between AED 187,500 and 375,000 have the option to voluntarily apply for VAT registration. However, businesses with taxable supplies and imports below AED 187,500 are not obligated to register for VAT. The application process can be completed online, but businesses can also choose to seek out reputable VAT consultancy services in the UAE to ensure proper and efficient execution. It is important to note that every
name, including the company, owner, manager, or authorized person, must be entered in both Arabic and English.
To be eligible for mandatory VAT registration in UAE, a business must meet one of the following conditions:
- The total value of its taxable supplies and imports has exceeded the mandatory registration threshold over the past 12 months.
- The business anticipates that the total value of its taxable supplies and imports will exceed the mandatory registration threshold within the next 30 days. It’s important to note that the mandatory registration threshold, which is set at AED 375,000, does not apply to foreign businesses.
On the other hand, businesses that do not meet the mandatory registration criteria may opt for voluntary VAT registration if they meet either of the following conditions:
- The total value of its taxable supplies and imports or taxable expenses in the preceding 12 months exceeds the voluntary registration threshold, which is set at AED 187,500.
- The business expects that the total value of its taxable supplies and imports or taxable expenses will surpass the voluntary registration threshold within the next 30 days.
Taxable Supply
When determining whether a business is required to register for VAT, a taxable supply refers to the provision of goods or services within the UAE by a company subject to a 5% or 0% tax rate. Additionally, imports are included in this definition if the supply of such goods or services would be subject to VAT if made within the UAE.
VAT Designated Zone in UAE
If a Cabinet decision identifies a Designated Zone, it is considered to be located outside the State and the Implementing States, subject to certain conditions:
- The Designated Zone must be a specific geographic area fenced and equipped with security measures and Customs controls to monitor the movement of goods and individuals in and out of the area.
- The zone must also have internal procedures for storing, processing, and keeping goods within its boundaries.
- Additionally, the operator of the Designated Zone must comply with the Authority’s established procedures.
Designated zones have been established for VAT purposes, and certain free zones are included in this list. Although special regulations apply to supplies made within these zones, businesses that operate within the designated zones may still be required to register for VAT if:
- They meet the registration criteria.
- The designated zones are subject to strict control criteria, and Customs procedures must be implemented to regulate the movement of goods into and out of the zones.
- For some supplies of goods, designated zones are considered outside the UAE’s territory for VAT purposes.
- In addition, security measures must be in place to monitor the movement of goods and people to and from the designated zones.
Documents Required for VAT Registration in UAE
To apply for VAT registration in the UAE, businesses are required to submit the following documents:
- A copy of the trade license
- Passport copies of the business owner and partners
- Copies of the Emirates ID of the owner and partners
- Memorandum of Association (MOA) and Articles of Association (AOA) of the company
- Company contact details and address
- Bank account details
- Monthly income statement for the period from 2017 till the present, as per the FTA format
- Nature of business and activities performed
- Expected turnover for the next 30 days
- Customs registration details (if applicable)
- Emirates ID and passport copies of authorized signatories, along with authorization documents.
VAT Registration Procedure in UAE
- Once all the required documents have been submitted, the Federal Tax Authority (FTA) will review the application.
- If all requirements are met, the application will be approved and a Tax Registration Number (TRN) will be issued within 2-3 weeks.
- For tax groups, the registration process begins with a single company, and group details can be added later.
It is important to note that failure to register for VAT within 30 days may result in a penalty of AED 20,000. Seeking the assistance of a reputable VAT registration consultant in the UAE can simplify the process and ensure that the registration is done accurately and efficiently.
Whether you are a small business or a large corporation, a VAT registration consultant in the UAE can help make the VAT registration process stress-free and easy to navigate.
UAE VAT Consultants
Farahat & Co. boasts a team of committed and knowledgeable tax professionals who receive continuous training and updates on any law changes that may affect their clients’ taxable areas. Whenever the Federal Tax Authority (FTA) issues updates, the team reviews and discusses them, analyzing the impact of any tax law amendments and promptly communicating their findings to clients. As a reliable VAT consultant in Dubai, we employ a comprehensive approach that utilizes updated techniques to address tax-related concerns.
VAT consultant in Dubai offers various VAT consultancy services to help businesses meet their VAT obligations in the UAE. Some of the primary services include:
- Ensuring that VAT returns and reconciliation are filed on time,
- Reviewing VAT records and returns,
- Guiding FTA notifications,
- Representing clients before the FTA on tax matters, and
- Reviewing and customizing source documents.
- Bank account details
- Monthly income statement for the period from 2017 till the present, as per the FTA format
- Nature of business and activities performed
- Expected turnover for the next 30 days
- Customs registration details (if applicable)
- Emirates ID and passport copies of authorized signatories, along with authorization documents.
VAT Advisory Services in the UAE Include
VAT planning helps businesses structure their operations tax-efficiently and minimize VAT liabilities.
- Advice on VAT compliance, including registration and filing requirements, and assistance with preparing and submitting VAT returns and reconciliations.
- Guidance on whether to register for VAT as a single entity or as part of a tax group can have implications for VAT liabilities and compliance obligations.
- Analysis of the applicability of the reverse charge mechanism for imports, which can affect the VAT treatment of goods and services.
- VAT training and awareness for staff to ensure that businesses understand their VAT obligations and are equipped to handle VAT compliance
VAT consultancy services including VAT advisory services can help businesses avoid penalties and ensure they fully comply with VAT regulations. By working with experienced VAT experts in the UAE, companies can focus on their core operations while leaving the VAT compliance tasks in capable hands.
Frequently Asked Questions
What Does a VAT Consultant in UAE Do?
VAT consultants in the UAE provide businesses with expert advice and guidance on VAT preparation, registration, and implementation. To add on, they manage VAT returns and refunds, and minimize taxable person’s VAT liabilities, in compliance with the VAT regulations and standards.
Why Do You Need a VAT Consultant for Your Business?
A VAT consultant can help your business stay compliant with VAT regulations and standards and manage your VAT returns and refunds, to which noncompliance accrues hefty fines.
How to Claim VAT Refund in UAE?
Businesses can claim VAT refunds in the UAE by submitting a VAT refund application form through the Federal Tax Authority’s online portal.
