In the heart of the UAE, Dubai soars as a global center of commerce and innovation, drawing entrepreneurs from around the world. Central to its appeal is its tax-friendly environment, with the Value Added Tax (VAT) playing a pivotal role in the region’s economic landscape.
Dubai’s ever evolving economy fuels business success, but navigating the complexities of VAT can be a challenge. That’s where VAT consultants in Dubai come in. Their expertise helps both local and international companies to avoid costly mistakes and unlock the full potential of the VAT system.
VAT consultants in Dubai, UAE not only facilitate proper and structured implementation of VAT, but also ensure efficient compliance to VAT laws. In fact, looking at the complexities in the UAE VAT laws, VAT consultancy has become an essential need for businesses to ensure accurate compliance.
From VAT registration and strategic tax planning to successfully navigating the ever evolving taxation environment of this global metropolis, VAT consultancy in Dubai plays a vital role in ensuring businesses’ compliance, efficiency, and financial well-being.
Aviaan Accounting is among the most trusted and top VAT consultants in Dubai, UAE. We are registered with UAE’s Federal Tax Authority. We providing effective VAT assistance to our clients in VAT related areas such as VAT consulting, VAT registration, VAT Training, VAT returns, and tax laws and regulations.
Aviaan Accounting has the best team of specialists who can help you overcome all the hurdles including unfamiliarity with VAT laws and regulations, lack of resources, compliance issues, and absence of an updated accounting system.
Our top-notch VAT consultation services in Dubai, UAE include:
Aviaan Accounting contributes to the growth of client’s business by ensuring personalized accounting practices, using advanced technology to improve compliance quality while reducing cost. We strive to provide superior, swift, and hassle-free VAT consultation services to our clients from all sectors of the industry across Dubai, Abu Dhabi, Sharjah, UAE. Our clients appraise us for our transparent, convenient as well as error-free VAT consultant process.
VAT or Value Added Tax is a consumption tax that is charged by different countries in the world, especially in Europe. In 2018, the Dubai government too decided to begin implementing VAT at a rate of 5%. This consumption tax becomes an indirect source of revenue for the government and is collected by companies on its behalf. It is charged after every sale in the supply chain; any company that manufactures a product must charge VAT in Dubai, UAE at each value addition stage till the final stage. Moreover, not only are companies registered under the VAT norm meant to charge 5% VAT on their products, whenever they buy goods from other companies or suppliers, they too need to pay VAT. It is the difference between the above two amounts that need to be paid to the government authorities. VAT consultants in Dubai help you abide by the VAT laws in an effective manner.
The following are ways in which the new VAT system can affect your business:
VAT is a relatively new concept in Dubai, and many businesses are yet not clear about the regulations concerning the same. However, in order to not get a penalty, it is important to adhere to the VAT norms in Dubai, UAE, which is where Aviaan Accounting can help you because we have experienced tax experts that would help you with your tax assessments and would also ensure that you comply with all the VAT norms. Our VAT Consultants in Dubai, UAE have a lot of experience with regards to VAT, would make no errors when calculating taxes, and would ensure that your company stays clean, and would also offer valuable tax-related insight.
Here are some benefits of hiring Aviaan Accounting for your VAT requirements:
We make sure to maintain a high-end quality accounting system so as to be able to provide the best VAT consultant to you.
The following are the types of VAT consultation services in Dubai, UAE we offer at Aviaan Accounting:
Penalties and fines are an unwanted burden for your business. The general penalties under VAT in UAE are the following. Failure to keep proper records and information leads to a penalty of AED 10,000, whereas it is AED 50,000 the second time. Failure to submit accounts when demanded by the authority, register within the timeframe, and designate a legal representative leads to a penalty of AED 20,000. Failure to inform the FTA in UAE after any amendment leads to a penalty of AED 5,000, whereas it is AED 15,000 the second time.
VAT was introduced in the UAE on the 1st of January 2018 to expand the source of revenue for the advantage of the citizens. VAT implementation in UAE has its benefits for the current business growth. VAT in UAE will aid by better infrastructure with contributions to the public infrastructure, higher business efficiency with a systematic approach to business, improved liability management and check of cash flow, and boost to the government with a more stable economy.
Related parties for VAT in Dubai are two or more people who are not separate on the economic, financial, or regulatory level. One can control the others either by law or through the purchase of shares or voting rights. Economic practices include either completing a common commercial objective, business profiting both parties, or supply to the same customers. Financial level including either financial support, dependency on another person’s business, or mutual interest in the proceeds. Regulatory practices including either the same management, employees, or shareholders.
The reverse charge mechanism in UAE is under which the recipient of goods or services has to pay VAT instead of the supplier. It applies to a taxable person importing goods or services for business or a registered person who makes a taxable supply in the UAE to another registered person of specified goods with applicable rules. The reverse charge under VAT law in Dubai is not applicable when the final destination of imported goods is another implementing state or when supply is taxable at 0%
All business entities should make their business ready for VAT audit in Dubai. VAT audit in UAE must follow a checklist before commencing audit. Documents required for VAT Audit in UAE are Records of all supplies and Imports of Goods and Services, Tax Invoices, Tax Credit Notes, exported Goods and Services, adjustments or corrections, Customs declarations, and fixed asset or capital asset purchased. The VAT audit procedure is reviewing the financial records and returns, performing them during official working hours, and reporting violations.
Designated Zones in UAE recognized by the Dubai Cabinet eligible for special treatment under the UAE VAT law. A Designated Zone must be a distinct fenced area. The zone should meet the following terms like adhering to stringent control criteria, maintaining detailed accounts of goods supplied, implementing security and customs systems, following internal procedures, and adhering to the processes set out by the FTA. If a Designated Zone in Dubai transforms the way it operates, then it will be considered a part of Dubai for VAT purposes.
The profit Margin scheme in UAE is where a registered person calculates and charges tax based on the profit margin scheme. The taxable person may calculate tax using the profit margin in the following situations that are goods purchased from a person who is not registered and a taxable person who calculated the tax using the profit margin scheme in UAE. It also includes the supply of goods for which no recovery of input tax. The goods subject to the profit margin scheme are second-hand tangible movable goods, antiques over 50 years old, and collector items.
A tax agent in UAE is a person registered with the FTA. Tax Agents hired by a Taxable Person to represent and assist them in fulfilling tax obligations. The duties of a Tax Agent are to assist clients, maintain the confidentiality of information, refuse to participate in any work resulting in the breach of the law and provide all information requested by FTA. FTA specifies eligibility criteria for Tax Agents. Tax Agents in UAE have to mandatorily register with the FTA and obtain a Tax Agent license.
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Yes, the deadlines for VAT Return filing and payment are in the Tax Registration Certificate, and these are either monthly or quarterly based upon the conditions by FTA. The due date for VAT Return and tax payment is the 28th day after the tax period closing (monthly or quarterly). There are no different dates for Return and payment.
The methods available to make the payment to the FTA are:
Yes, books of accounts maintained for VAT by all registered persons for a period ranging from 5-15 years.
Yes, input VAT incurred in UAE is eligible to claim and adjust against the output VAT, except on those specific cases announced by FTA. Most of the input VAT is eligible to claim if it is not personal but business-related.
Failure to register is an offense leading to a penalty charged by FTA. FTA issues Tax numbers on all registration applications unless the application is not complete or wrong information is uploaded, or FTA requires some amendments or additional information.
The other consequence of non-registration, business owners cannot claim any input VAT incurred, and eventually, the cost of operations will go up. The person needs to pay all the tax amount due on the supplies during such delay in registration
No, non-registered persons cannot claim any input VAT as only the registered persons are eligible to charge VAT. Most of the individuals in supplies are the end-user, not needed to register for VAT.
FTA has announced a list of Designated zones in UAE, and only those shall follow special provisions as published by FTA. The designated zone has special treatment for the supply of goods treated as out of scope, and no VAT is applicable. Services supplied by free zone companies are in the same line as mainland companies taxed at 5% unless exempt or zero-rated.
Since it is just wrongly reported, there is no short report and short payment of tax. The error is adjusted in the next due tax return.
Aviaan is a leading Advisory firm, providing comprehensive Consulting services to businesses across various industries. Our team of experienced professionals is dedicated to helping clients achieve their financial goals by offering tailored solutions that meet their unique needs.
Our mission is to provide exceptional Consulting services that exceed our clients’ expectations. We strive to be a trusted partner in their financial journey, offering expert advice and guidance to help them make informed decisions.
Financial strength is the pillar of any successful Dubai business. Aviaan Accounting, a leading accounting firm, equips you with the tools and expertise you need. Our comprehensive services empower you to make informed decisions and unlock your full growth potential.
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