VAT SERVICES
VAT Services We Offer:
Our special VAT consultancy services in UAE involves providing an understanding of the Tax Laws and Executive Regulations, understanding your business model and evaluation of VAT’s impact on your business, providing inputs using VAT compliant software, exclusive VAT bookkeeping assistance, helping you to prepare and execute all VAT related communication to your trade partners and providing strategic inputs for conducting your business in the post-VAT age.
Services
Mandatory Registration:
If a person is resident in the UAE or any other GCC state that has implemented VAT in accordance with the Common VAT Agreement of the States of the Gulf Cooperation Council, the person is required to register for VAT if: the total value of their taxable supplies and imports made within the UAE exceeds the Mandatory Registration Threshold of AED 375,000 over the previous 12-month period; or the person anticipates that the total value of their taxable supplies or imports will exceed AED 375,000 in the next 30 days. If the person is not a resident in any GCC country that has implemented VAT, they may be required to register for VAT if the person makes any taxable supplies or imports in the UAE, unless there is another person in the UAE who is responsible for accounting for VAT on such activities.
Voluntary Registration:
The Voluntary Registration Threshold shall be AED 187,500 (one hundred and eighty-seven thousand five hundred dirhams). A Person may not register voluntarily unless he satisfies the Authority that he is carrying on a Business in the State. For the purpose of voluntary registration, the phrase “Taxable Expenses” means expenses which are subject to the standard rate and which are incurred in the State by a Person who has a Place of Residence in the State.
A taxable person must notify the FTA of the requirement to deregister within 20 business days from the end of the month in which any of the following occurs
the taxable person ceases making taxable supplies; or the value of the taxable person’s taxable supplies in the preceding 2 calendar months is less than the Voluntary Registration Threshold.
The FTA will deregister the taxable person if they are satisfied that: the taxable person no longer makes taxable supplies and does not intend to make any taxable supplies in the next 12 months; or the value of the taxable person’s taxable supplies or taxable expenses over the previous 12 month period is less than the Voluntary Registration Threshold and the taxable person does not anticipate making taxable supplies or incur taxable expenses in excess of the Voluntary Registration Threshold in the next 30 days
ITC is providing VAT return review & filing services in UAE on monthly and quarterly basis, as per the dates mentioned on the company’s VAT certificate. VAT return filing is mandatory for all the registrant persons and businesses in UAE. They should file VAT returns with the Federal Tax Authority (FTA) on a monthly or quarterly basis. VAT Returns must be filed within 28 days from the end of the tax period which mentioned on the VAT Application or VAT Certificate. All the Taxpayers will file their VAT returns using the e-services portal on FTA website.
VAT is a complex tax affecting every aspect of your business in the UAE and the worldwide market. As a self-assessing tax, it is the responsibility of the taxpayer to ensure they are accounting for the right amount of tax and at the right time. FTA carry out VAT inspections or audits at varying intervals. If they identify errors, the company shall be subjected to penal provisions including levy of tax, interest, and fines. The main purpose of a VAT Health Check is to ensure that the business you are handling of VAT is in line with current FTA VAT laws and regulations.
VAT Health Check includes the following:
- Assess your in-house accounting records; documentation; VAT records.
- Review of your filed returns to identify any grey areas where in you are perpetually making errors.
- Confirm that all your VAT returns are filed correctly and properly in relation to your business income and allowable expenses.
- Check if the returned figures as per VAT documents match with the financial records
- Analyse if you are making use of the VAT laws in getting proper credits or refunds for your business and if the same are claimed in the returns.
- Review of accounts and records maintenance and audit your VAT files.
- Confirm that all your registration documents are in compatible with the FTA requirements and if all of them are replaced or renewed whenever it is due.
- VAT Health Check helps to determine the best scheme suited for your type of business for VAT accounting.
Recovering Value-Added Tax (VAT) is a crucial part of an effective indirect tax strategy. However, learning how to claim a VAT refund in UAE for your business is sometimes difficult and long delays are common. Taxpayers must not only know the cases when they have the right to demand a tax refund, but they also need to understand how they can get prepared to obtain the requested VAT tax refunds within a short timeframe.
Reconsideration is the way to approach authority if you are not satisfied with the penalty decision issued by the authority. It is a request application that can be submitted by a Registrant/Non-registrant or tax agent after preparing a proper case study that produces evidence justifying the reason. Any business or person who received a penalty from FTA can apply for VAT reconsideration in UAE within 40 business days after receiving the penalty. The authority will review the decision and might waive off the penalties if the business proves the case by UAE VAT reconsideration.
Contact Our VAT Specialist
Some Important Notices, Guides & Forms
- VAT User Guide (Registration, Amendments, De-registration) Summary Full Guide Turnover Declaration Letter Form Change Email Address
- Tax Group User Guide (Registration, Amendments and De-registration) Summary Full Guide
- VAT Importer Guide (Registered and Non-registered)Summary Full Guide
- VAT Refund User Guide Summary Full Guide
- VAT Returns User Guide Summary Full Guide
- VAT Payment for Commercial Property Buyers GuideFull Guide
- Real Estate Guide Full Guide
- Taxable Person Guide – Value Added Tax Full Guide
- Director’s Services Full Guide
- Tax Groups Guide – Value Added Tax Full Guide
- VAT Refund for Exhibitions and Conference User Guide Full Guide Declaration Form Organizer Form Space Supplier Form
- Designated Zones VAT Guide Full Guide
- Insurance Guide Full Guide
- Charities GuideFull Guide
- Input Tax Apportionment Special Methods Full Guide Form
- Financial Services VAT GuideFull Guide
- Declaration by Registered Recipient of Gold and Diamonds Declaration letter
- VAT Financial Guarantee or Cash Deposit Release For Non Registered Importers User Guide Full Guide
- VAT Administrative Exceptions Guide Full Guide Form
- VAT Refund User Guide Business Visitors Full Guide
- New Residences VAT Refund User Guide Full Guide
- Refund of VAT Paid on Goods and Services Connected with Expo 2020 Dubai Full Guide
- Compensation-type PaymentsFull Guide
- Profit Margin Scheme – Eligible GoodsFull Guide
- Labour Accommodation: Residential versus Serviced PropertyFull Guide
- Use of Exchange RatesFull Guide
- Non-recoverable Input Tax – Entertainment ServicesFull Guide
- Tax InvoicesFull Guide
- Public TransportationFull Guide
- Farm Houses and Farm LandFull Guide
- Date of Supply for Independent DirectorsFull Guide
- Bank Interest and DividendsFull Guide
- Donations, Grants and SponsorshipsFull Guide
- Importation of goods by agents on behalf of VAT registered personsFull Guide
- Disbursements & ReimbursementsFull Guide
- VAT Treatment of Options and Option PremiumsFull Guide
- Transfer of a Business as a Going ConcernFull Guide
- Business-to-Business Supplies of Healthcare ServicesFull Guide
- Time-frame for recovering Input TaxFull Guide
- Change in the permitted use of a buildingFull Guide
- Clarifications User Guide Full Guide
- Payment User Guide Full Guide
- Tax Agents And Tax Agencies User Guide Summary Full Guide Tax Agent Amendment Form
- Tax Agent Professional Standards Guide Full Guide
- Voluntary Disclosure User Guide Full Guide
- Education Sector (Schools and Nurseries)Full Guide
Tax Reduction Related To Costs
- If your annual turnover exceeds the mandatory threshold limit of AED 375,000, then you are liable to pay tax.
- Optional registration threshold limit is AED 187,500/- per year, where, any business person can voluntarily register for VAT and continue with the normal compliance process.
The types of rates applicable are:
Standard rate
Businesses registered under UAE
VAT will be levied 5 percent tax.
Zero rate
Exports of goods and services outside the UAE
International transportation, and related supplies
Supplies of the certain sea, air and land means of transportation (such as aircrafts and ships)
Certain investment grade precious metals (e.g. gold, silver, of 99% purity)
Newly constructed residential properties, that are supplied for the first time within 3 years of their construction
We will guide your Finance and Accounts team and update them with up-to-date progress concerning VAT. Additionally, our VAT consultants will assist your team in developing your internal VAT operations, involving finance management and bookkeeping operations, in tune with the VAT system requirements.
Supply of certain financial services
Residential properties (Only for 3 years of completion or from the second supply)*
Bare land – sale and lease
Local passenger transport