VAT Registration: How to Apply for VAT in UAE

VAT In UAE

VAT or Value added Tax is applied on the goods that are consumed by the people. VAT is an indirect tax that is levied in around 180 countries in the world and UAE is one of them. The end-customer has to pay the tax and the businesses collect it on the behalf of the respective government.In case of UAE, the Federal Tax Authority was established in 2016 that looks after the taxation process. The tax is collected to increase the revenue and that will help in the betterment of public services. The VAT in that case is charged in every step of the supply chain.

VAT Compliance Requirement

In order to do business you need to register your business under the respective government. When you register your business you need to provide taxable goods and services to the people. In order to supply the taxable as a business owner you need to follow certain things. In most cases the rules are set by the respective government of the country.

There are different requirements for VAT compliance and they are given below.

  • Invoice date
  • Invoice number
  • The details of the business including the VAT number
  • Details of the customers
  • Details of the supply
  • Details of the applied VAT rate
  • Details of the NET, VAT, and gross values

VAT Implementation

VAT or Value added Tax is implemented on the consumption of the goods or service. The VAT is implemented on the supply chain and not only that but also the value is added on the every stage. The end-users need to pay the tax on the cost of the product that is lesser than the cost of the material. The VAT is implemented in around 180 countries in the world and it helps to raise the revenue of the country.

The VAT highly depends on the consumption of the goods and services but not on the tax payers’ income. In case of implementing VAT it is charged on the gross margin at every stage of manufacturing,distribution and sales.

VAT Return Filing

If your business is eligible for monthly VAT return then only you can apply for VAT return filing. In order to file for VAT return you as a business owner need to take help from the Federal Tax department. The department is designed to look after the steps and accept the return and the process is done both online and offline. In order to file the VAT return you need to know that there are different categories and you need to see in which category your business belongs. While filing for return you need to provide all the details and the information needs to be relevant.

VAT Refund

Every year consumers leave millions of dollars of refundable VAT because people think that claiming the tax is a headache. But claiming back the tax after doing an extensive shopping is easy. You need to produce your passport and along with that you need to submit all the necessary documents from the seller. If you are a tourist you need to know that EU VAT starts from 8 to 27 percent per country. If you purchase any good it minimums the charges and you need to double check that. On the other hand, it is essential to know that you will not be getting back the tax you paid for hotels and on the food.

VAT Advisory

A dedicated VAT Advisory UAE team can help customers consider the impact of VAT via the stages of business. From considering new activities to acquisitions and even overseas expansion, the professional team does it all!Combining the indirect tax experiences with industry insight, a qualified team helps businesses and organizations for addressing the indirect tax technical and even process challenges. Mentioned below are some of the services:

  • Identifying the correct VAT activities’ treatment
  • Identifying risk areas through the compliance health checks
  • Having knowledge for negotiating with the HMRC in the disputes for reducing liabilities and then agree the payment terms.
  • Assisting with the inspections and registrations
  • Addressing reporting needs
  • Liaising with the legal advisors regarding property transactions

VAT eBook

It has become mandatory for business houses eligible for VAT in the UAE to follow regulations and needful work for abiding by forthcoming VAT law. For following the rules for BAT, one has to have proper insight. If you’re looking for the sources to educate you in the matter, you can download UAE VAT EBook! The book is handy and comes with insightful knowledge about aspects of the implementation of UAE VAT that includes direct & indirect tax apart from other laws and regulations. You can get easy guidance to educate yourself about VAT and how it is in the UAE!

VAT Training

VAT Training & Certification Course happens to be one of the demanded certification courses in the UAE in present. Value Added Tax or VAT offers the training on services and goods,inter-companies’ sales, SAP, stock transferring, Third party drop shipments, purchases, and vat certification, apart from others. A dedicated team of VAT training in UAE will come with the below-offered supply categories.

Supplies’ Categories

  • Zero Rated Vs. Exempt
  • Reduce rated Supplies
  • Taxable Supplies
  • Exempt Supplies
  • Zero-rated Supplies

A dedicated VAT training team should be experienced and qualified. It should have a wide range of resource materials for the reference as well as course materials.

VAT Bookkeeping

Since VAT has now been implemented in the UAE, there are lots of rules and regulations associated with it in regards to bookkeeping. The records’ maintenance happens to be an essential part for registrants since it was necessary for them during the time of registration for VAT. The bookkeeping records should be maintained by registrants. The time for bookkeeping has also been specified. People should have an insight about bookkeeping apart from having knowledge about the time period for accounting. All these will help them maintain the records in the long run. Choosing a right bookkeeping firm in UAE can be of paramount importance.

VAT Accounting

Ever since the implementation of VAT occurred in the UAE, new set of rules and regulations came into the forefront. With that, VAT accounting got its share of rules alongside bookkeeping. VAT isn’t the cost to businesses, unless things happen accurately and timely. However, it is the form of direct tax! The registrants are supposed to maintain the record for accounting. There’s a specific time period for accounting which people should understand in order to maintain their respective records. The records for the capital assets such as equipment, machinery, alongside other assets are supposed to be maintained for about a decade until the end of a tax period. UAE VAT Exemption The VAT exemption refers to that there are some of the goods in UAE on which no tax is levied by the government of the country. If you purchase the good or service you will not have to pay the VAT on the cost; the supply cannot also claim the input tax on each purchase. The exemption in UAE is applicable on few financial services, land, residential building, etc. there is special act for exemption and the local transport system is also exempted from VAT. So it is easier for the people to avail those facilities without spending hefty of money. VAT Penalties  There is a penalty on submitting the tax return late and business men have to face the thing if ever he or she becomes the defaulter. This is the reason the VAT registered business submit the tax by law on time so that they can avoid the penalty. It is essential to know that there is no penalty is charged on the first default. If a business becomes late at a constant manner in that case the business receives notice from the tax department of the respective country. Therefore, the missing deadline for tax return may appear to be unfavorable for the business.