Helping You Be VAT Ready

Getting in touch with VAT Consultants in UAEis easy now.  Whether you search online or prefer to meet face to face, our name is always one of the best Value Added Tax consultants in UAE’.  It is agreed by all the GCC countries that VAT will be introduced in every country latest by 1st January 2019. However, UAE decided to implement VAT likely w.e.f 1st January 2018. VAT regulatory and statutory compliances and report the same on a periodic basis. The challenge for the business community in the Gulf will be to understand the new VAT Law and implement the same well before the due date.

General Information Rrgarding VAT
If the Annual Turnover of the company is more than AED 375,000/, it is mandatory for the company to register under UAE VAT before the end of the year 2017.

If the Annual Turnover is between AED 187,500 & AED 375,000/, it is optional for the company to be registered under UAE VAT law. Further, if it is less than AED 187,500/, the company need not register under this law.

For the startups, if the VAT attracted expenses are more than AED 187,500/, (USD 50K) such companies have to be registered under the UAE VAT law.

The threshold mentioned above will be calculated as follows:

  • The total value of supplies made by a taxable person for the month in which he is applying for VAT registration and the previous eleven months.
  • The total value of supplies of the subsequent 30 days on which he is applying for VAT registration.

If in any of the above two options, the turnover is more than AED 375,000/- the company has to register for VAT.

For arriving the turnover for VAT registration purpose, value of exempted supply will not be considered.

Who is a Taxable person ?
Taxable Person means any person who is conducting an economic activity for the purpose of generating Income.

  • Such person is registered or obliged to register for VAT as per the registration threshold in a member state.
  • Taxable person can include businesses located outside the GCC territory.
  • Taxable person can be any individual person conducting an economic activity.

Registration for VAT
A taxable person as per the UAE VAT law can register in the third quarter of the year 2017. It is mandatory to get registered by every taxable person under the VAT registration platform before the end of the year 2017.

What is Tax Group / VAT Group?
Member State may allow 2 or more persons that are residents of the same member state to register for VAT as a Tax Group. Such group will be treated as a single taxable person for compliance of UAE VAT law. Entities can register as VAT Group if:

  • Each person has a place of establishment or a fixed establishment in the UAE.
  • The persons are “related parties” and
  • Either one person controls others, or two or more persons from the partnership control the others

Entities within one VAT Group are treated as one entity for the UAE VAT purpose. Supplies made between members of a VAT Group will not be considered as a transaction under UAE VAT. Further, one entity cannot be part of more than one VAT group. Record Keeping

It is mandatory for every taxable person to maintain books of accounts under UAE VAT law. In addition to that the authority can ask for additional documents such as, annual accounts, general ledger, purchase day book, invoices issued, invoices received, credit notes, debit notes, VAT Ledger etc.

Under the UAE VAT law the books of accounts and records are to be maintained for five years.

What are the responsibilities of business entities once VAT is implemented?

  • All business entities in UAE:
  • Registered for UAE VAT or not should maintain proper records of their business transactions and ensure that all financial records are accurate and up to date.
  • Should register under UAE VATif they are coming under eligibility criteria based on turnover.
  • All UAE VAT registered business entities should charge VAT on taxable goods or services they supply.
  • All UAE VAT registered business entities may reclaim any VAT they have paid on goods or services within the country.
  1. Should maintain correct and accurate business records for government scrutiny to ensure that that business entities adhere to the mandatory requirement stipulated by the UAE VAT Law.
  2. All VATregistered business entities must report the amount of VAT they collected and the amount they paid to the government on a regular basis. The Tax authority will open an online portal for submitting this record on a periodic basis (called VAT return).

If  VAT charged on customers are more than the amount charged by the supplier and service providers, then the excess amount collected has to be paid to the VAT authority. Similarly, if the amount of VAT on the purchases and service providers are more than the amount charged on customers, the refund can be claimed for the difference

Whether business entities have to prepare anything in advance for VAT? If so what are those?

Every business unit in the UAE should get prepared well in advance before the due date of VAT implementation:

  1. Check whether they come under the mandatory VAT registration category or not.
  2. For complying with the VAT requirements, every organization has to make necessary changes to their existing financial management and accounting system, accounting software, and sometimes even to their core operation style.
  3. Human resource training will be necessary to update and upgrade the staff to equip themselves to the new UAE VAT regulatory requirements.

How to take refund from VAT?

The registered entities who are eligible to get VAT refund (When input VAT is more than output VAT) can submit the VAT returns to the authority by disclosing the same.

How to file a Tax Return in the UAE?
As per Article (8) of Federal Law No. (7) of 2017 on tax procedures, every taxable person shall prepare and submit the tax return for each tax period to the authority and need to settle the payable tax within the timeframe specified in the tax law. Return filing must be done through online portal. The time frame for filing the VAT Return will be mentioned in the UAE VAT Regulations/ UAE VAT Law. We Emirates chartered accountants Group will support the businesses to file Tax Return / VAT Return.

VAT Implementation training for the Corporates as well as for group of professionals
Based on the organizational structure and need of the management and accounts & finance department, we provide training on Value Added Tax (VAT) to all the personnel of the organization who are coming under VAT compliance chain. The training to finance and accounts and IT personnel are in detail for applying the VAT concepts and for clarifying the procedural formalities required for complying the requirements. Training for managerial and other departments level are made for giving proper awareness of VAT structure and overall VAT compliance requirements.

We provide VAT Implementation Services

The experts in VAT undertake the followings steps for successful implementation of UAE VAT in your company.

Understand the business model:
The TAX experts/ VAT Experts visit your office to understand the business model for designing a VAT Implementation plan which suits for the UAE VAT Regulations for your business.

Registration for VAT:
To comply with the law of the land with respect to VAT (UAE VAT Law), we advise regarding the procedural formalities and the date by which registration has to be made, considering whether the company got any exemption in this respect or not.

Analyzing the impact of VAT on your business:
In order to have a better clarity and appraisal for the management and to streamline the operations of the company by complying with UAE VAT requirements, we study the impact on business on working capital, costing and profitability.

  • Managing the VAT transaction process:
  • Accounting systems & Invoicing under VAT
  • Filing of Return VAT Return

The support for preparing and filing of the first VAT return by taking the correct input tax credit against the total VAT liability with guidance on planning/better timing of cash flows.