VAT CONSULTANCY

VAT IN UAE

VAT or Value Added Tax is a form of indirect tax. It is a sort of general consumption tax that is gathered gradually, depending on value-added, at each phase of distribution/sales. In some countries, it is popular as a GST (Goods and Services Tax).

VAT in UAE is imposed on most supplies of products and services. There are only a few goods and services which are not under VAT. The criteria for VAT registration are on the yearly turnover of the business entity. The rate of VAT in the UAE is 5%.

Smart Group, a leading VAT consultant firm in Dubai, UAE that offers high-quality VAT services at an affordable price. VAT services we provide are VAT Registration, VAT in Dubai free zone, VAT Implementation, VAT Advisory, VAT Return Filing, and Refund claim, etc.

VAT IN DUBAI FREE ZONE

As per the guidelines set by the UAE VAT Law, a designated free zone is a zone that meets the condition indicated under the Executive Regulation of VAT Law, as is treated as an outsider. As per the VAT implementation rule, there is no tax imposed on the transfer of products and services between these zones. The VAT is applied to products and services supplied or imported into the UAE. The levies will not be charged if the supply is not taking place in the UAE.

EXCISE TAX REGISTRATION IN DUBAI

Excise tax came into power in 2017 in the UAE. There are many goods available in the market that is harmful to health or the environment, called excise products. The UAE government applied excise tax on these excise goods, called an excise tax.

The products including tobacco and tobacco products, energy drinks, carbonated drinks are included in the excise products.

RATE OF EXCISE TAX

We Smart Group are a leading Tax Consultant in Dubai, UAE & having a long proven experience in different types of tax services in the UAE.

If you want to be registered for the excise tax, we are ready to help you with the entire process of excise tax registration.

TAX AGENT SERVICE

TAX AGENT SERVICE IN THE UAE THROUGH SMART GROUP

It won't be constantly possible for the organizations to take care of the issues on tax matters and resolve it with the concerned authority (FTA) without other assistance. It will be essential for organizations to hire a tax agent to deal with tax matters. If a company hires an agent, it can be benefitted for them in the following terms:

We have to work on documentation and submit our documents in Arabic to the concerned authority. We no need to worry if we don't have records in Arabic because that tax agent will be an Arabic proficient professional.

We have to maintain our records for the long term like 5 years. So, hiring a full-time tax agent is good for our business as he can help us to meet the legal requirements for the long term.

There is always a risk of penalties for businesses due to changing the law and policies. A tax agent keeps always update himself for the new laws, so this risk is eliminated.

Businesses always need better tax planning. A tax agent can suggest the right things to implement that help in better tax planning. Tax agent also plays a very significant role when we get assessment notice for the assessment.

According to the article 14 of the government law no 7 of 2017; official guidelines will indicate the procedure for listing a tax agent in the register and the rights and commitments of the tax agent before the authority and the taxable person. Smart Group is connected with registered tax agent in the UAE to serve the business community better.

OVERVIEW OF UAE VAT

GCC (Gulf Co-activity Council) nations have come to terms' on a fundamental level' to the GCC VAT Agreement to collect VAT (Value Added Tax) in the region. This will assist the GCC by reducing their reliance on oil and other hydrocarbon products as a wellspring of income. It is accepted by all the GCC members that VAT will be presented in each nation the most recent by first January 2019. Be that as it may, UAE decided to actualize VAT likely from first January 2018.

We accept the decision to execute VAT would cause a change in perspective in the business elements of the country. Like the majority of the countries over the world, business in the Gulf region also currently needs to cling to stringent VAT administrative and statutory compliances and report the same on a periodic basis. The test of the business network of the Gulf will be to comprehend the new VAT Law and execute a similar well before the due date

VAT is one of the most widely recognized consumption tax found around the world. More than 150 nations have implemented VAT. It incorporates the European Union (EU), UK, Canada, New Zealand, Australia, Singapore, Malaysia, India and so forth. USA, GCC nations and some different nations, particularly from African landmasses, have not accepted VAT.

GENERAL PRINCIPLES OF VAT

Value Added Tax (VAT) is a roundabout assessment. It is a sort of general consumption tax that is gathered steadily, in light of the value-added, at each phase of production or distribution/sales. It is normally executed as a destination-based tax. It is otherwise called goods and services tax (GST) in certain nations.

This tax is applied to most transactions of products and services except a few related to basic food and health care. There are just a few items exempted from VAT in the UAE. Two or three items are zero-appraised and the remainder of the items is full rated or standard rated. The criteria for VAT registration will be on the yearly turnover of the business entity. The proposed pace of VAT in the UAE is 5%.

INPUT VAT

Input VAT is the value-added tax, added to the cost when products are purchased or services are rendered. If the buyer is registered on the VAT Register, the purchaser can deduct the measure of VAT paid from his/her settlement of tax authorities.

OUTPUT VAT

The output VAT is the value-added tax determined and charged with the sale of goods and services.

EXEMPT SUPPLY

An Exempt Supply is a stockpile on which VAT isn't charged and for which the related input VAT isn't deductible. For instance uncovered land, local transport, the sale of private property (second deal onwards) rent of the private property and certain financial services.

ZERO-RATED SUPPLY

A zero-rated supply is an assessable supply on which VAT is imposed on 0% and for which the related input VAT is deductible. For instance exports, healthcare, education and etc.

STANDARD RATE SUPPLY

The taxable supply of the Standard Rate is a stockpile on which VAT is charged with 5% and for which the related input VAT is deductible. Items that are not going under both exempted class, just as a zero-rated category, are going under standard-rated supplies.

REVERSE CHARGE MECHANISM UNDER UAE VAT

In the UAE VAT, the Reverse Charge Mechanism is appropriate while bringing in merchandise goods or services from outside the GCC nations. Under this, the organizations won't need to physically pay VAT at the purpose of import.

The obligation to regarding detailing of a VAT transaction is moved from the dealer to the purchaser; under Reverse Charge Mechanism. Here the purchaser reports the Input VAT (VAT on Purchases) just as the output (VAT on sales) in their VAT return to the same quarter.

The reverse charge is the amount of VAT one would have paid on that goods or services in the event that one had bought it in the UAE. The shipper needs to reveal the measure of VAT under both Input and Output VAT classes of the VAT return of that quarter.

Reverse Charge Mechanism completely removes the obligation to the overseas seller to register for VAT in the UAE.

VAT IMPLEMENTATION SERVICE

The VAT is implementation came into effect from 1st January 2018. It is an indirect tax imposed on products and services on each sale. Companies must go for the VAT implementation in the UAE. Smart Group offer its VAT implementation services at affordable prices in all over the UAE.

REQUIRED STEPS IN VAT IMPLEMENTATION SERVICE:

STUDY THE BUSINESS MODEL:

We have to study the business nature of the company in order to provide better VAT services to the customer.

ANALYZE THE IMPACT OF VAT ON YOUR BUSINESS:

For better clearness and appraisal for the management and to streamline the operations of the organization by agreeing to the UAE VAT necessities, we study the effect on business on working capital, costing and benefit

REGISTRATION FOR VAT:

We ensure that businesses are registered with the tax ID for VAT implementation.

ACCOUNTING SYSTEMS UNDER VAT:

The present accounting systems will be scrutinized. In order to prepare the first VAT return to the Federal Tax Office (FTA), It is recommended that financial accounting statements be produced using the appropriate taxonomy based on the VAT system. It is suggested that financial accounting statements be created utilizing the right testimony based on the VAT system to prepare the first VAT return to the Federal Tax Office (FTA).

INVOICING UNDER VAT:

We implement the requirements of VAT invoicing under the UAE VAT law.

FILING ON VAT RETURN

We support for filing for the first VAT return by taking the right input tax credit against the total VAT.

WHAT IS VAT VERIFICATION IN DUBAI UAE

All companies that get registered for VAT get a unique code, the unique code is called VAT number or VAT registration number. Companies can get their VAT registration numbers mentioned on the certificate issued by HMRC.
Smart Group is a leading VAT consultant that provides a wide range of services for VAT Implementation services, registration, and VAT Verification service.

VAT RETURN FILING SERVICE

According to the Federal Law No. (7) of 2017 on Tax Procedures, a taxable individual needs to present a VAT return in UAE with the data and information indicated for tax reason as per the structure, determined by the Federal Tax Authority (FTA). A taxable individual is required to present the VAT Return for each tax period within the time given by the FTA and this must be as per the arrangements of the UAE VAT law.

Smart Group and their team of experts can support your business for VAT return filing in the following areas:

• Our team of experts will visit your office on a weekly/monthly basis to analyze the information for filing the VAT return. We will prepare the VAT return at the end of each VAT return period for your business as per the norms of UAE VAT law
• We will make sure that the VAT return is filed within the legal time for each tax period
• We will assist you in payment of Minimal Tax Liability as per the norms of the UAE law.
• We will make a plan for your optimal tax.
• We will be represented to the authority on your behalf as per requirement.

VAT REFUND IN DUBAI,UAE

The service of a VAT refund in Dubai is available for visitors and tourists. They can claim for refund that they paid on purchasing the items and services during their stay in the UAE.
The UAE Federal Tax Authority declared on 18/11/2018 VAT refund service for eligible tourists to recover the value-added tax on their purchases while leaving through Abu Dhabi International Airport.

REQUIREMENTS FOR TOURISTS TO CLAIM THEIR VAT REFUND IN DUBAI, UAE

To claim a VAT Refund, tourists or visitors must meet the following requirements as determined by the Federal Tax Authority

• A tourist must purchase items from a retailer who is connected to the 'Tax Refund for Tourists Scheme'.
• Items should not nen excluded from the Refund Scheme of the Federal Tax Authority (FDA).
• A tourist must want to leave the UAE in 90 days from the date of supply, along with the purchased supplies.
• He needs to deliver the goods out of the country within 90 days from the date of supply.
• The purchasing and exporting of items or goods should be carried out as per the rules and procedures fixed by Federal Tax Authority

VAT REGISTRATION SERVICE

The UAE implemented the VAT from 1st January 2018. It is necessary for businesses to register for the VAT those are doing business in the country and their annual turnover exceeds AED 375,000 per year.
You can get registered your business for the VAT by accessing the official website of the FDA (Federal Tax Authority). You need to arrange various documents for VAT registration.

Online VAT Registration Process in Dubai, UAE

You can access the Federal Tax Authority’s online portal and start the registration process. Below we explained the entire process to do the registration online.
You can start the online VAT registration process by visiting the Federal Tax Authority’s online portal and following a step by step procedure.In the online VAT registration process, you can submit the application in English as well. However, there are 3 fields where we need to submit the information in Arabic as well:

• Name of the company
• Name of the Manager
• Name of the authorized signatory

DOCUMENTS THAT ARE NEEDED FOR VAT REGISTRATION:

Before applying for VAT registration, the following documents will be needed. We also need to upload the soft copies of the documents online along with the application.

• Trade license copy of the organization
  
• Documents like passport copy and Emirates ID are needed
  
• The authority records approving the entity/individual to perform activities within the UAE for example certificate of incorporation, articles of association, power of attorney, etc.
  
• Detail of business activities
  
• Turnover data for last 1 year in AED
  
• Possible or expected turnover in next 1 month
  
• Documents that show sales for the last 12 month
  
• Bank account details

Smart Group is a leading VAT constultant in Dubai, UAE who provide all types of VAT services including VAT registration service at affordable price.

VAT ADVISORY SERVICES IN UAE

If you want to establish and spread your business in Dubai, UAE, it is not easy to keep managing the VAT obligations for businesses. You must be aware with the latest implemented tax system of VAT. It is necessary to maintain a proper record to pay taxes on time. That's why it's necessary to hire an experienced VAT advisory service to take care of business taxation.
Smart Group is an experienced VAT Advisory Service based in Dubai, UAE. We have mastery in VAT Advisory service and have been working with over 300 clients from all industries. We have a highly professional team that will work closely with you.

KEY BENEFITS OF USING A VAT ADVISORY SERVICE

REDUCING THE RISKS

If you want to reduce the risks of business disrupted and other financial risks, it is a wise decision to hire a VAT Advisory Service. We will work with you and suggest you in the right way for your tax payment options.

SAVING OF TIME

If you hire a VAT Advisory Service, you no need to asses, analyze, and measure the possible risks for the organization. We will analyze and audit your risks and provide you timely support for your business.

IMPROVED PROCESSES OF FINANCE

Hiring a VAT Advisory Service helps you in improving the processes of finance. We are experts in the VAT Advisory and ready to share our experience and skills with you to make VAT an easy for you.
Smart Group offers you the best VAT Advisory Services in the UAE. Please feel free to contact us and we are ready to assist you.

VAT COMPLIANCE

VAT REGISTRATION THRESHOLD

VAT compliance in Dubai is important for companies at the time of VAT registration. As per the guidelines of the VAT, a business must be registered for VAT if the turnover of the company crosses AED 3,75000 yearly. If their yearly turnover is less than AED 3,75000, the registration is not mandatory for the companies.

VAT COMPLIANCE REQUIREMENTS IN UAE

The UAE government has been implemented the VAT in the country from 2018, so the companies and businesses need to get registered under VAT. There are some VAT compliance requirements in UAE as discussed below

REGISTRATION FOR VAT

The businesses need to get registered for VAT if they meet the minimum criteria of turnover. All registered companies will get a Unique Tax Payer Registration Number. Companies should be registered under the VAT law if their annual revenue is at least 3.7 million AED. The registration for UAE VAT is optional for the business with annual revenue between 1.8 and 3.75 million AED.

FINANCIAL TRANSACTION RECORDINGS

It is necessary for all companies in the UAE to maintain proper financial transaction records. The financial records of the companies should be accurate, updated, and trustworthy.

VAT CREDIT CLAIMS

The businesses have right and they can claim tax credits on all business-related services and products purchased.

FILING OF PERIODIC TAX RETURNS

Preparing formal tax returns on regular intervals is necessary for the companies registered in UAE VAT.

VAT CHARGES

The companies and businesses will be charged for VAT on all taxable products and services sold by them. Smart Group is one of the leading VAT consultants in Dubai. We offer complete services for VAT Compliance in Dubai, UAE.