VAT Consultants in Dubai, UAE

Value Added Tax (VAT) Services

The UAE introduced Value Added Tax (VAT) on January 1, 2018, as part of its economic diversification strategy. With a standard VAT rate of 5%, it’s one of the lowest globally. VAT applies to most goods and services, aiming to boost public sector revenue and reduce reliance on oil income.

The standard VAT rate is set at 5%, making it one of the lowest rates globally. This tax applies to most goods and services, aiming to generate revenue for the country’s development projects and public services.

Businesses with an annual turnover exceeding AED 375,000 must register for VAT, while those with revenues between AED 187,500 and AED 375,000 have the option to register voluntarily.

Once registered, companies are responsible for charging VAT on their sales and collecting it from customers. They must also file regular VAT returns to report their taxable sales and input tax (the VAT paid on purchases).

VAT compliance is a critical aspect for businesses, as the Federal Tax Authority (FTA) enforces strict rules and penalties for non-compliance. To minimize tax liabilities, businesses can reclaim VAT paid on purchases through the input tax recovery system, ensuring that only the final consumer bears the tax burden.

For businesses navigating VAT in Dubai, VAT audit services are essential to ensure compliance and avoid penalties. Expert VAT consultants in Dubai offer specialized services, providing businesses with comprehensive VAT audits, ensuring accurate tax filings, and helping to recover VAT on eligible expenses.

Their expertise minimizes risks, enhances financial reporting, and helps businesses meet regulatory requirements smoothly. A reliable VAT audit service can improve overall tax management, ensuring VAT compliance and promoting business sustainability in Dubai.

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Is VAT applicable in the UAE Free Zones?

In the UAE, designated free zones have specific VAT regulations that businesses must follow. Certain transactions between companies within these zones may be exempt from VAT, but services utilized within the free zones are subject to VAT according to UAE legislation.

The VAT registration threshold is AED 375,000, with a voluntary threshold of AED 187,500; non-resident companies must register without a minimum threshold. VAT grouping is allowed under certain criteria.

What is the Difference Between Zero-Rated & Exempted Tax Supplies?

Zero-Rated Tax Supplies

Goods and services that are subject to a 0% VAT rate, meaning that while no VAT is charged on the sale of these items, businesses can recover the input tax paid on related purchases and expenses.

Zero-Rated Tax Supplies

Goods and services that are subject to a 0% VAT rate, meaning that while no VAT is charged on the sale of these items, businesses can recover the input tax paid on related purchases and expenses.

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Advantages of VAT Services

Expert Guidance

VAT consultants in Dubai provide businesses with expert advice on VAT regulations, helping them navigate complex compliance requirements and avoid costly mistakes.

Compliance Assurance

Professional VAT audit services ensure that businesses comply with local VAT laws, reducing the risk of penalties, fines, and audits from tax authorities.

Input Tax Recovery

VAT audit services assist businesses in identifying and reclaiming eligible input tax credits, improving cash flow, and reducing overall tax liability.

Efficient Tax Management

VAT consultants in Dubai help businesses streamline their VAT processes, making it easier to track and report VAT transactions accurately, which enhances overall efficiency.

Risk Mitigation

Help businesses minimize exposure to potential tax disputes and legal issues.

Up-to-date Knowledge

VAT regulations can change frequently; VAT audit services keep businesses informed about the latest updates and amendments, ensuring ongoing compliance.

Customized Solutions

VAT audit services can tailor their approach to fit the specific needs of a business, providing solutions that align with their operational model and industry requirements.

Focus on Core Business

By outsourcing VAT audit services, businesses can focus on their core operations, knowing that their tax compliance and reporting are in expert hands.

VAT Services

01. Account Creation Support

Support for account creation, guidance from initial registration to ongoing maintenance.

02. Documentation

Completion of documentation solution for your Value Added Tax (VAT) registration, assessment and preparation of all necessary documents.

03. Tax Registration Number (TRN) Certificate

Assistance in acquiring and certifying TRN, ensuring adherence to legal requirements.

04. VAT Registration

Assistance for businesses with the registration process with the tax authorities, enabling them to collect and remit Value Added Tax (VAT) on taxable goods and services.

05. VAT Return Filing

Submission of periodic VAT returns to the tax authorities, including the VAT collected on sales and the VAT paid on purchases during a specific reporting period.

06. VAT Refund

VAT refund service entails businesses claiming back excess VAT paid on purchases that exceed the VAT collected on sales.

07. VAT Audit

Support during VAT audits conducted by tax authorities, ensuring that all VAT transactions are accurately documented and compliant with VAT laws, navigating the audit process smoothly.

08. VAT Accounting

Maintaining a proper record and track of all VAT-related transactions in business accounting records. Implementation of robust accounting practices with accurate reporting and compliance with VAT regulations.

09. VAT Deregistration

Cancellation of VAT registration with tax authorities when necessary, such as in cases of business closure or when they no longer meet the required turnover thresholds.

01 VAT Registration

Apply for VAT registration through the Federal Tax Authority (FTA) portal and obtain a Tax Registration Number (TRN).

Takes 1 to 2 weeks

02 Invoicing and Record-Keeping

Businesses must issue tax invoices for taxable supplies and retain proper records, including sales and purchase invoices, for a minimum of five years.

Continuous

03 VAT Returns Preparation

Prepare VAT returns, summarizing the output tax collected and input tax paid. Returns can be submitted quarterly or monthly, depending on the business's size and revenue.

Takes 1 week

04 VAT Returns Submission

Submit VAT returns through the FTA portal within the specified deadlines (usually 28 days after the end of the tax period).

Takes 28 days

05 Payment of VAT

Pay any VAT due as indicated in the submitted return. The payment must be made by the submission deadline.

Takes 1 day

06 VAT Refund Claims

If the input tax exceeds the output tax, businesses can claim refunds through the FTA portal within 1 to 2 months.

Takes 1 day

07 Compliance Reviews and Audits

The FTA may conduct compliance checks or audits on businesses to ensure adherence to VAT laws.

Continuous

08 Annual Review and Updates

Regularly review VAT compliance procedures and update them based on changes in regulations or business operations.

Continuous

Documents Required for VAT

VAT Registration	VAT Compliance
Trade License	Sales Invoices (including VAT details)
Passport Copies of owners/partners	Purchase Invoices (input VAT documentation)
Emirates ID of owners/partners	Completed VAT Returns submitted to the FTA
Business Address Proof (utility bills or lease)	Books of Accounts (ledgers and journals)
Bank Account Details (statement or letter from bank)	Relevant Bank Statements
Recent Financial Statements or Estimated Forecast	Documents for Refund Claims (if applicable)
Import/Export Records (if applicable)	Contracts and Agreements related to VAT transactions