Value Added Tax (VAT) is a type of consumption tax that is applied to the value added at each stage of production or distribution of goods and services. It is a tax on the value added to goods or services, not a tax on the total revenue generated. VAT is generally charged as a percentage of the price of goods or services. VAT is a common tax system used by many countries around the world, including the United Arab Emirates (UAE). In the UAE, VAT was introduced in 2018 as a means to diversify the government’s revenue sources and reduce reliance on oil revenues.
Under the UAE VAT system, businesses that meet certain criteria are required to register for VAT and charge it on taxable supplies of goods and services. They are also required to keep records and submit periodic VAT returns to the Federal Tax Authority (FTA).
VAT is an important aspect of doing business in the UAE, and it is important for businesses to ensure compliance with VAT regulations to avoid penalties and other consequences.
If your business meets the criteria for VAT registration, you must apply for registration and obtain a VAT registration number.
Once registered, you can seek consultation from VAT experts to understand your VAT obligations, its impact and how to manage VAT effectively.
After consultation, you must implement VAT processes and systems to ensure accurate VAT calculations, invoicing, and reporting.
You must file VAT returns on a regular basis (monthly, quarterly, or annually) to report your VAT liability or refund claim.
In case of a VAT audit, you must provide necessary documentation and support to ensure compliance with VAT regulations.
You can seek ongoing advisory to stay updated with VAT regulations and optimize your VAT compliance and management processes.
Why choose us
VAT provider have team of experts with experience in VAT regulations and compliance requirements. Ensures that your business is in full compliance with law.
Managing VAT can be a time-consuming process. By outsourcing this task , you can save time and focus on other important aspects.
Hiring an in-house VAT expert can be expensive. By outsourcing your VAT services, you can save on overhead costs such as salaries, benefits, and training.
A professional VAT provider can help ensure that your VAT returns are accurate and filed on time, reducing the risk of errors and potential penalties.
Peace of mind
By working with a reputable VAT provider, you can have peace of mind knowing that your VAT compliance is being handled by experts.
Value Added Tax (VAT) is a consumption tax that’s levied on the value added to goods and services at each stage of their production or distribution. It’s ultimately borne by the end consumer.
The UAE implemented VAT on January 1, 2018, as part of its efforts to diversify its revenue sources.
The standard VAT rate in the UAE is 5% of the value of the taxable supply.
Most goods and services are subject to VAT, unless specifically exempt or zero-rated.
Zero-rated supplies are considered taxable supplies, but VAT is charged at a 0% rate instead of the standard rate. This means that while VAT is applied to these supplies, the rate is zero, resulting in no additional cost to the recipient. Businesses can still claim input VAT credit on their purchases related to zero-rated supplies, which makes them favorable for international trade and essential goods.