Like other business sectors in UAE, VAT services are necessary for Event management companies also. Event management is an innovative business founded on creativity and celebrations. Event management businesses require project management skills for organizing various functions. It has almost made an eye-catching experience in UAE with Expo 2020 and innovations at international levels. Event management activities include organizing: conferences, entertainment events, public events, weddings etc. A value-added tax is an indirect tax charged on the taxable supplies and is regarded as a consumption tax. It is placed on a product or service whenever a value is added at the stage of event functions. Both consumers and businesses who are the residents of a country are liable to pay VAT when purchasing products or services. The cost of a product, less any of the cost of materials used in the product that has already been taxed, is the Amount of VAT that the consumers pay.
VAT was introduced by FTA with a standard rate of 5% under the GCC VAT system. A business register for VAT if their annual turnover exceeds the threshold of AED 375,000 as per the current year. There exists an option for voluntary registration if there is a threshold of AED 187,500. The government of UAE and the federal tax authority (FTA) defined this process of the threshold for registration and reporting of VAT. Event management companies who have registered themselves for VAT have to file their monthly or quarterly VAT return as prescribed by the FTA. Goods and services are separated into three categories on which VAT will be applied:
VAT Exempted Category: It includes Health Sector, Education, Food and rent, local passenger transport, corporate businesses, first-time property buyers, residential leases and land buyers.
Zero per cent VAT: This category includes goods and services listed for export and international services, precious metals, certain education, and health services and supplies, residential properties that are newly constructed and supplied within three years.
Five per cent VAT: This includes electronics goods, clothes, food, fuel, communication services, entertainment, etc.
Tax audit and tax consultation help the event management companies for good presentation of a financials along with identifying the weakness of the accounting system within the organization. Considering VAT related requirements for event management companies, tax audit consultation helps in:
CDA provides top-notch Tax Consultancy Services and the Implementation and Tax Reclaim Services at a very reasonable charge. The CDA experts are chosen because they are insightful of the procedures of the VAT. They know the right protocol to follow for the UAE VAT registration. That is why CDA is the first choice to be considered by the companies for their compliance with the VAT laws in the UAE. At each distribution, channel VAT is added up to purchase and sales, that is why it’s called as a value-added tax which is obtained in multistage of productions. CDA offers various VAT services for event management companies such as:
Our tax experts will help you to obtain TRN for the company by submitting essential documents which include:
Our tax consultants help you to maintain the documents in a systematic manner which includes:
Before calculating VAT, your business must comply with rules to avoid any penalty. VAT return depicts the tax amount due for a particular tax period. CDA experts prepare VAT return filing on 201 forms and submit it to FTA authority.
Compliance with UAE VAT law is a complex task. Following each law concept and filing the tax for all manufactured goods it can be finished or semi-finished is necessary to avoid the penalty. We assure your tax filings on time.
It is the process of cancellation of TRN. Deregistration occurs when the taxable supplies fall less than the threshold limit as prescribed by FTA. Our VAT deregistration services are at a reasonable rate.
Before submitting reconsideration forms you must pay the previous penalties and wrong filing fines. VAT penalties must be paid on time with FTA for smooth tax life.
Our client portfolio is evidence of our excellent vat services for event management companies.
“I am so happy and more satisfied with the services. The experience was definitely great. Your company is always reliable and prompt in your services.”
Founder and Managing Director, Squire Event Management
The standard rate of VAT is 5%. There will be exempted and zero-rated goods and services. The standard rate is applied to all goods and services that do not fall under an exempt or zero-rated goods and services category.
Any taxable person must retain the VAT invoices and other notes for 5 years as per FTA.
VAT is not deductible for non-taxable supplies. Customs duty cannot be claimed for payment of VAT. In some cases, input tax cannot be recovered. E.g.: Staff entertainment expenses.
The deadlines are clearly mentioned in the TRN certificate and it is monthly or quarterly based. The payment of due tax is on the 28th day of the tax period.
If you have missed out any bill in the previous filling or the vendor submitted the invoice late, FTA allows you to claim the input tax in the next subsequent period.
Yes, if you have raised a Tax Invoice we are liable to pay the VAT to the government, if the customers do not make the payment in future we can issue a Tax Credit Note and reclaim the amount we have paid in excess.
Yes, input VAT can be claimed prior to the tax registration of taxable supply.
Tourists can claim their tax refund for the purchases they made during the stay through a fully integrated electronic system which connects to the retailers registered in the online portal “Tax refund for tourist scheme”.
If the foreign company events taxable supply exceeds the threshold limit of AED 375,000, they are liable to pay VAT unless it is handled by a tax agent.
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