VAT Services for Free Zone Companies in UAE

Free zone companies in light of Vat

Businesses within the designated zone are having similar rules of non-designated zones. According to the UAE VAT Law, the free zone companies need to undergo VAT registration. They are also eligible to register under the group VAT system. As per the VAT implementation rule, the transfer of any goods within these designated zones are tax-free. This rule includes:

• Purchase and sales of goods, sometimes resale of goods.
• Goods supplied or attached to, another good located in the same free zone area provided that another good is not consumed in the Designated Zone
• Goods supplied to be used in the production of goods in a particular designated zone apart from consuming that good in the same designated zone.

These conditions are under UAE VAT law provisions. As the term consumption is overridden in the aspects of designated zones.

Some exceptions include:

• Consumption-based tax at a standard rate for all the goods sold within the designated zones.
• Energy costs inside the zones will be subjected to VAT.
• DZ Companies to be VAT registered if their threshold limit goes high.

DESIGNATED FREE ZONE AREAS

How CDA helps you?

CDA offers quality accounting and VAT services for free zone companies in Dubai and UAE. As an auditing firm and tax experts, we help you to take further steps for tax-related purposes which include:

• VAT Compliance and Registration
• Timely submission for VAT return filings and refunds if necessary
• Preparing FTA compliant books of accounts as per necessities
• Analyse the VAT issues and prepare better solutions to appropriate your business based on its nature and the needs of the owner
• Our Accountants help to prepare financial statements and records to fulfil business compliance with UAE VAT law
• Deregistration services

Why Tax Audit and Tax Consultation is Important for Free Zone Companies?

The free zones offer companies a plethora of advantages including a tax-free environment and 100 per cent foreign ownership. Still, there is a requirement for tax services to ensure:

• Compliance with tax laws and VAT regulations
• Maintenance of the financial records and bookkeeping system
• Audit services to generate audit reports which are mandatory at the time of trade license renewal
• To track the import and export of goods from the mainland to designated zone and vice versa

CDA client portfolio

We provide accounting services and VAT services for free zone companies across the UAE. Our versatility in service providing often attracts new clients.

“The team is the best I could receive my requirements on time. I am totally happy with the service received planning to hold hand on-hand experience with CDA”

Amin Elhadi

Managing Director, MOS 5 Tel Trading LLC