VAT Compliance Services Dubai
“Let your VAT contribute to the country as we contribute to you!”
VAT is an indirect transaction tax applied at each stage of the supply chain. While end consumers typically bear the cost, registered businesses serve as tax collectors on behalf of the Federal Tax Authority. VAT was implemented in the UAE on January 1, 2018.
To ensure full compliance with UAE VAT regulations, businesses may need to modify their core operations, financial management, bookkeeping, technology, and potentially their human resources.
Businesses remit VAT to the government after offsetting the tax amounts paid to suppliers against those collected from customers. We offer a range of VAT compliance services, including:
Happy To Discuss on VAT Registration Services Dubai
Fiscal & Fintech Accounting Firm
Key Stats
VAT Registration Dubai
VAT registration is made by registering the entity or a person who operates the business.The person can be an individual, or a legal person, or another form of entity. The following registration criteria are followed while registering for VAT:
Mandatory Registration:
- Taxable supplies and imports of the business was more than AED 375,000 in last 12 months
- Taxable supplies and imports is expected to cross AED 375,000 in next 30 days
Voluntary Registration:
- Taxable supplies and imports of the business was more than AED 187,500 in last 12 months
- Taxable supplies and imports of the business is expected to cross AED 187,500 in next 30 days
- Startups and small scale businesses have the option of registering voluntarily if their expenses exceed the voluntary registration threshold, thereby making them eligible for tax credit.
Before applying for VAT, you must define your business, legal person, resident, place of establishment, fixed establishment, turnover, and taxable supply.
However, inaccurate and incomplete VAT registration procedure leads to delayed approval of Tax Registration Number which on the other hand invites penalties. F&F is mastered in providing you with hassle-free registration with complete VAT requirements and makes you good to go.
VAT Return Filing Dubai
VAT return is the official tax report a registered business has to submit to the FTA. UAE requires all its registered organizations to periodically file their VAT Form 201 as per their tax period invariable of business process and function. It is tedious task to consolidate all your taxable supplies including exports for any businesses and submitting it with FTA, Fiscal & Fintech has the expertise in filing the VAT return that is fully complied with the law.
Benefits of Outsourcing VAT Filing in Dubai to Fiscal & Fintech:
- Helps save excess VAT
- Enables compliance of transactions
- Reduces errors during document submission
- Protects the organization from VAT penalties
- Maintains the time-line of filings
- Periodically checks and audits the VAT health
Further any delay in remitting the VAT liability beyond the due date could attract late payment fee as below:
- 2% of unpaid tax immediately
- 4% is due on the seventh day following the deadline for payment
- 1% daily penalty will be charged on any amount that is still unpaid one calendar month after the deadline for payment, up to a maximum of 300%.
Last-minute processing of VAT increases the error rate and decreases the ability to take corrective measures which costs time, energy, and money. As it says delay is dangerous, we are dedicated to the periodical computation of tax charges for better planning and periodical checking, auditing, and computing the VAT health and liability to position you in a safe space.
VAT Advisory Services
Implementation of VAT procedure in an organization starts with analysing the account books, understanding the input and output structure, planning the strategy, and segregating the tax group. In addition, the management should be aware of VAT rates to control and modify cash flows.
VAT Advisory Services by Fiscal & Fintech:
- Assess and improve tax controls
- Analysis on tax provisions on your business transactions
- VAT Voluntary disclosure
- VAT Health Checkup
- Training on VAT laws
- Maintaining VAT complied documents
- Reconciliation of VAT liability
We at Fiscal & Fintech ensure that the team is regularly updated with amendments in the VAT laws and provide top notch professional advisory services that benefit the organization in the long run by avoiding penalties levied in the law.
VAT Refund Services Dubai
VAT refund is requested by organizations from FTA when the input tax (charged on amount paid to suppliers on purchases) in VAT return filing is greater than the output tax (charged on the amount of sales). FTA carries out an initial assessment, document verification, and scrutinizes the claim. Upon successful validation, the applicant is entitled to receive the refund of excess tax within 20 days of application.
Though the normal refund period of VAT is 20 days, complex applications can take a while longer. In such instance, the taxpayer is informed through e-mail about the status whether FTA accepts or rejects the applications.
If the applicant doesn’t want to get the refund at the current tax period, he can carry forward the recoverable to subsequent periods and use it in payable tax or penalties or apply for a refund later.
Our Clients
FAQs
{"1":2,"2":"\nThe Federal Tax Authority’s web portal (EMARA Tax) facilitates online VAT registration in the UAE for obtaining the Tax Registration Number (TRN). BCL Globiz provides services for both VAT registration services and Tax Group registration services. A company is required to seek VAT registration when its taxable supplies or imports exceed the mandatory registration threshold of AED 375,000. Additionally, a business has the option to register for VAT voluntarily if the combined value of its taxable supplies, imports, or taxable expenses exceeds the voluntary registration threshold of AED 187,500"}
VAT, as a general consumption tax, is applied at 5% to all transactions of goods and services unless specifically exempt in Article 46 of the Federal Decree-Law No. (8) of 2017 on Value Added Tax or subject to a rate of 0% as per Article 45 of the Federal Decree-Law.
Every seller registered for VAT is required to issue a tax invoice when selling taxable goods or services. There are two types of tax invoice under the VAT decree, one is Simplified tax invoice and the other is full tax invoice. A simplified tax invoice can be raised by a seller if the recipient of services/goods is unregistered (B2C) or the consideration for the supply doesn’t exceed AED 10,000. A detailed invoice needs to have all the information as menitoned in the Article 59 of the Executive regulation.
The standard tax periods for VAT return are as follows:
1) Quarterly for businesses with an annual turnover below AED 150 million.
2) Monthly for businesses with an annual turnover of AED 150 million or more.
3) The FTA may, at its discretion, allocate a different tax period for a certain type of business
Common challenges faced during the VAT registration process in Dubai include incomplete documentation, difficulties in navigating the online application system, and understanding specific requirements. The FTA is very specific and if the required details are not shared then it can be rejected after issuing queries. BCL Globiz can assist in overcoming these challenges by providing professional guidance, ensuring accurate documentation, and facilitating a smooth VAT registration process.
Connect with Us
Feel free to reach out Fiscal & Fintech. We would be more than happy to host you at our offices.
