What is VAT?
VAT (Value Added Tax) is an indirect tax, which is generally referred as general consumption-based tax. In GCC, VAT will be imposed on most of the supplies of goods and services, keeping certain services and goods out of its jurisdiction. VAT is linked to a product when a value is added to it at each stage of its supply chain. All businesses which come under the VAT criteria are required to maintain proper books of account. As a local law firm, we are well aware of UAE VAT Law, and we provide affordable and best possible solution for VAT implementation in UAE. Contact us for Consultation on VAT in UAE, Tax in Dubai and VAT Registration.
VAT in UAE/ Tax in UAE
VAT in UAE will come into effect on January 1, 2018. UAE is gearing up along with other GCC nations for the introduction of this Value Added Tax (VAT). The rate of the VAT is decided to be 5 %, which will be uniform throughout GCC. It is mandatory for any business which reports an annual revenue of AED 375,000 or more to apply for VAT registration. Other companies may also choose to register voluntarily for the Tax in UAE. It is important to know UAE VAT Law along with the process of VAT implementation in UAE.
Preparing for VAT in Dubai, UAE
Most of the businesses have already started preparing for making their company UAE VAT or UAE Tax ready. It’s advisable to consult a VAT consultant in Dubai, UAE to get a proper assessment to understand the impact of UAE VAT implementation to their business. Once you have registered your business under UAE VAT Law, you need to report the amount of VAT paid and received on a regular basis. If you have paid more VAT to your suppliers than you have charged, then you can reclaim the difference from the government. In an alternate situation, you will have to pay the difference.
While preparing your organization for the UAE VAT implementation, you have to make changes in core operations, financial management, accounting, IT, etc. Before making such significant changes, it is advisable to hire an expert VAT consultant in UAE. Our experienced and highly qualified Tax consultant is UAE will advise you on changes and will also handle the periodic filing of returns.
Why do you need to hire a Tax Advisor in Dubai (UAE)?
- Registration and periodic filing of returns.
- For understanding the impact different rules and regulations, example: -transitional rules, double taxation rules.
- Avoiding penalties because of non-compliance with due-diligence. Overlooking any area of importance might lead to fines, penalties and litigations. For example: – Under article 77, tax evasion is liable to penalties. This can be avoided by timely advice from our expert VAT advisors in UAE.
- Before company formation, in UAE you need to understand the legal implications of VAT law.
- Understanding how the new VAT law will impact your existing contracts which will be spanning during the VAT implementation period.
- UAE VAT Law is extensive and there is very less time left.
To know more about the implications of VAT on your business kindly give us a call, and let our team of qualified VAT consultants handle all your VAT related queries.
Documents Required for VAT Registration in UAE:
- Trade License(s)
- Certificate of Incorporation (if applicable)
- Articles of Association/ Partnership Agreement (if applicable)
- Contact Information
- Bank Account details
- Self-Attested Financial Statements (Signed along with company seal)
- Customs Details (Regarding import/export – if applicable)
- Authorized Signatory documents
- Passport and Emirates ID of manager, owner and senior management
- Filled up Registration Form (You will receive through email)