VAT

VAT Consultant in Dubai

Over the past couple of years, Dubai, has become a hub for businesses. Because of the ease with which one can set up their businesses here or can expand their business operations, owing to the political provisions and booming economy which promises high returns and profits, thousands of people, not just from the country but from all over the world have come to Dubai in order to start their own businesses.

While operating a business in Dubai turns out to be quite profitable, it is also important to remember that you need to adhere to certain rules and regulations of the government with respect to running your business, as it is with any other country. As a business owner, one of the obligations you need to fulfill is registration for VAT in Dubai.

VAT in Dubai

It is mandatory to not consider VAT same as sales tax, although both are consumption tax but there is a significant difference among the two. VAT in Dubai is imposed on each stage of the supply chain, imports and goods/services. Sales tax is only levied on the final sale and transaction involving goods. VAT is the more sophisticated approach to taxation as it involves business to collect tax on behalf of the government and avoid any misrepresentation and tax evasion.

The Dubai Federal and Emirate governments provide public with a variety of amusements parks and recreational activities which are paid because of using government budget. With VAT government will be able to enhance the infrastructure and entertainment places for the families leading to satisfied and happy consumer. VAT in Dubai gives government with alternative source of income and lower its dependencies on oil and hydrocarbon, resulting into strong economy.

hjdfsdh 323k 131 - VAT

VAT services in Dubai

VAT or Value Added Tax is a consumption tax that is charged by different countries in the world, especially in Europe, and 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 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 pay to the government authorities.

The following are ways in which the new VAT services in Dubai can affect your business:

  • You will be required to properly document your business income, costs as well as your VAT associated charges.
  • All registered businesses, as well as traders in Dubai (and the Dubai), shall be required to charge VAT to all their customers at the existing rate, which is 5% and shall have to pay VAT on any goods that they purchase. The difference between the two is what must be paid to the government agencies.

VAT Registration Dubai

Maintaining and updating all financial records, transactions and business accounts is essential for every corporate entity. If a business fulfils the criteria of minimum annual turnover, then it should get itself register for VAT in Dubai. By getting registered means that company can charge VAT to its customers and remit the same to the Government. Registered businesses are admissible to do the following:

  • Charge VAT on taxable supply of goods and services
  • Claim Input Tax Credit on VAT paid on their purchases
  • Payment of VAT to the government
  • Filing of VAT return as per VAT Law Dubai

It is advisable to get prepared for the information required during the process of VAT registration before creating an e-service account. Most important include details of the business, contact/banking information, business partnership, and declaration.

VAT Verification Dubai- TRN Number

The Tax Registration Number is issued after registering for VAT in Dubai. It is a unique 15-digit number which differentiates a company from others. VAT verification gives company a strong position among its internal and external stakeholders and increase its credibility in a way that the company is not involved in tax evasion practices. Moreover, TRN facilitate in preparing tax invoice during a transaction, claiming tax refund, and filing VAT return.

What are Goods and services under VAT Dubai

According to Executive Regulations and Federal Decree, goods are any form of property that can be supplied. It includes real estate, energy, and water as well. By services, VAT Law means anything other than goods than can be supplied are services.

VAT Refund

Under VAT Law in Dubai, a company can claim VAT refunds in case of many circumstances, be it a special scheme or a taxable person in a net taxable refundable position, it includes:

  • VAT refunds Dubai for foreign businesses.
  • VAT refund Dubai for tourists.
  • VAT refund for Dubai nationals building new residences.
  • VAT refunds for Foreign Governments, International Organizations & Diplomatic Bodies.

How to File VAT Return in Dubai?

VAT Filing is done through an online portal provided by Federal Tax Authority (FTA). All businesses need to provide the information regarding sales, purchases, output and input VAT in the designated areas of VAT return form available on the portal. The form is known as VAT 201, it has different categories which a tax payer needs to fill in order to complete the process of VAT filing. The sections in the form includes:

  • Taxable Person Details
  • VAT Return Period
  • VAT on sales and all other outputs
  • VAT on expenses and all other inputs
  • Net VAT Due
  • Additional reporting requirements
  • Declaration and Authorized Signatory

Why Choose Aviaan Accounting for VAT Services in Dubai?

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, 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 tax consultants have a lot of experience with regards to VAT Consultants, 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:

  • Efficient Reviews and Analysis: At Aviaan Accounting, we ensure that all your business contracts and your client business documents are thoroughly reviewed and analyzed so that taxation is prepared properly; and will be no errors and omissions and so that VAT reports can be filed smoothly and on time.
  • Training and Resources: We ensure that you and your employees are well informed about the VAT taxation norms and understand the whole process of VAT filing. Moreover, we also make sure that you have access to the necessary resources and technology so as to be able to meet your company’s VAT preparation and taxation needs.
  • VAT Compliance and Filing:At Aviaan Accounting, we not only  clear your doubts or queries with regards to anything VAT but also help you adhere to VAT norms in Dubai and with the VAT filing process.

Aviaan Accounting VAT Implementation Process in Dubai

We make sure to maintain a high-end quality accounting system so as to be able to provide the best VAT services to you. Here are some of the services we offer:

  • Assist in VAT registration by employing the best VAT consultants.
  • Analyze as well as find out how VAT deployment impacts your business.
  • Analyze accounting necessities and IT systems for clients in Dubai.
  • Top VAT consultants deal with VAT filing and assessment of VAT returns
  • Assist in processing and claiming VAT refunds.

Aviaan Accounting VAT Services in Dubai

The following are the types of VAT services we offer at Aviaan Accounting:

  • VAT Consultancy: Our tax consultants will help you with VAT registration and with maintaining a record of your tax invoices so you can avoid any penalties.
  • VAT Agent Appointment: You can fix an appointment with our VAT agentswho have experience in handling VAT is not just Dubai but also Asia and Europe.
  • VAT Deployment: Since we have a lot of experience working with VAT in different countries, we can help you with moving to the tax process transition.
  • VAT Compliance:To make sure that you file your VAT on time, our VAT consultants will help you find all the applicable compliance requirements according to Dubai VAT norms.
  • VAT Filing: Our VAT consultants will help you record and file client invoices the right way, and at the right time, so you don’t get a penalty.
  • VAT Registration:By hiring Aviaan Accounting, you would stay clear on the documentation end as we would take care of the online VAT registration with the concerned authorities.
  • VAT Readiness Assessment: So that your business is ready for VAT application, we offer a free VAT readiness assessment.

Impact of VAT in Dubai on different Sectors

Services

VAT Impact

Digital Marketing Services

All Service including Search Engine Optimization, Search Engine Marketing, E-mail Marketing and Other Social Media Marketing are subject to 5%VAT
 

Transportation Services
 

All domestic and international transportation is exempted from VAT or zero rated except public transport for commercial purpose and tourist that will be charged 5% VAT
 

Financial Options
 

Options under the context of debt or equity security are qualified as a financial service exempted from VAT.
 

Healthcare Services
 

Healthcare is categorized as zero-rated except for the medicines and medical equipment not listed in Cabinet Decision which will be charged 5% VAT
 

Sale of Business
 

Sale or transfer of business completely or an independent part as a going concern is exempt under the UAE VAT Regime.
 

Telecommunication & Electronic Services
 

Telecommunication and electronic services will be charged at 5% VAT in Dubai. However, the export of telecommunications services shall be zero-rated.
 

Financial Services and Islamic Finance Products
 

Supply of financial services and Islamic finance products will be treated as zero-rated. The rest of the financial services shall be charged at the rate of 5% VAT under Dubai VAT Law.
 

Real-Estate Services
 

Residential properties are exempted from VAT payments during the lease or sale of the property.
 

Education Services
 

All educational services are zero-rated by Dubai VAT Law.

If you have any queries related to VAT norms in Dubai or with regards to our services, get in touch with us. Our experts can certainly help you with the requirements. Contact us now at info@aviaanaccounting.com or +971502155301

We focus on advice consulting business financials Get A Quote