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VAT Consultancy Services in Dubai, UAE

Value Added Tax (VAT) is an indirect tax imposed on the consumption of goods and services. Businesses in UAE need to register under the VAT law to get their business approved by the government, to seize a mass market, to expand business profile, and more. If you are a business owner looking for VAT consultancy services in Dubai and UAE, CDA will help you avail various VAT related services including VAT registration, VAT deregistration, VAT accounting, VAT return filing, etc. 

vat consultancy services in uae

UAE VAT Consultants

The UAE has entered into the world of Taxes very recently. The government introduced Excise Tax with effect from 1st October 2017 and the Value Added Tax (VAT) from 1st January 2018. The applied rate of Excise tax for carbonated drinks is at 50% and for tobacco and energy drinks, it is 100%. At the same time, the VAT rate is applicable at a minimal rate of 5%. 

As per the Federal Law No.2 of 2015 on Commercial Companies, the tax registered companies should follow the mandatory regulations as discussed below: -

Article 26 of the Federal Law No.2 of 2015.

Every organization or company must maintain the accounting reports for the duration of 5 years.

Article 348 of the Federal Law No.2 of 2015.

A fine of AED 50,000 – AED 500,000 will be imposed for failing in keeping the accounting records.

Article 349 of the Federal Law No.2 of 2015.

A fine of AED 20,000 – AED 200,000 will be enforced if the company fails to maintain the VAT filing records for the specified period of 5 years. 

Availing professional VAT consultancy services in Dubai or UAE will be beneficial for you to manage your VAT activities seamlessly, avoid errors and fraud plays.  CDA has a team of expert VAT consultants in Dubai, who offer impeccable VAT services to clients from various domains.  

Why you Need a VAT Consultant in Dubai?

Why do you need a VAT Consultant in Dubai? As VAT is a newly implemented idea in the region, it requires the advice of trained and skilled Tax professionals to support the businesses in complying with the laws in the initial stages of this evolution. Many companies are not aware of the need for VAT registration, and the rules and regulations of calculating VAT and the process of the payment.

You will have the following advantages of having the help of a VAT Consultant: -

  • Precision

The precision of data is ensured by the VAT consultants by taking extra care. They cross-check the VAT files with the help of advanced technology and manual reviews. 

  • Greater knowledge

The best VAT consultant is equipped with greater knowledge about everything related to VAT. As a beginner, this knowledge can help you to understand various VAT rates and calculate the amount, and to pay on time.

  • Mistake free

The long-term experience and skill of a professional VAT consultant will ensure that the VAT return will be mistake-free which will save your time and money.

  • Minimise the time

A well-experienced VAT professional can save your time essential for examination, valuations and calculation of the risks associated with the company.

  • Enable easy VAT registration & VAT Filing

Since VAT registration is mandatory for businesses which are above the threshold limit, VAT consultants can provide clear guidance on the process of VAT registration and VAT filing.

  • Proper maintenance of records

A VAT specialist can help you in creating files and proper maintenance of records to keep you ready for vat audit. They can provide expert advice on financial matters also.

  • Lower the risk

An expert VAT professional has a better industry experience to handle all kinds of risks in business. He can give you better advice on how to reduce the potential risks associated with VAT.

VAT Filing and Processing 

You must file for tax return electronically through the FTA portal: eservices.tax.gov.ae. Before filing the VAT return form 201 on the portal, you must make sure that all tax returns requirements are met.

When are businesses required to file VAT return?

Taxable businesses must file VAT returns with FTA on a regular basis and usually within 28 days of the end of the ‘tax period’ as defined for each type of business. The standard tax period is:

  • quarterly for businesses with an annual turnover below AED150 million
  • monthly for businesses with an annual turnover of AED150 million or more. 

What is the form VAT 201?

The VAT 201 is the VAT Return form which a taxpayer needs to fill and submit in order to complete the VAT return filing. The Form VAT 201 the details mentioned below:

  • The Details of the Taxable Person
  • The period of VAT Return 
  • VAT on sales and all other outputs
  • VAT on expenses and all other inputs
  • Net VAT Due or VAT payable for the period 
  • Additional reporting requirements (Only for the Profit Margin Scheme Applicants)
  • Declaration and Authorized Signatory

Once you carefully fill all the above-mentioned details, click the submit button. You will receive a confirmation message from the FTA on your registered mail.

CDA VAT Consultancy Services

CDA VAT consultancy services in Dubai and UAE are tailor-made to meet the unique requirements of the customers. At CDA, we conduct an in-depth analysis to understand your business complexities extending from your services to accounting, taxation, auditing, and VAT services. Our VAT specialists having relevant industry-specific experience in taxation in compliance with international standards can help you successfully complete all your VAT activities without any fail. 

CDA VAT consultants in Dubai help you with:

  • Accurate & cost-effective VAT advisory services on-time on VAT related issues
  • Exact guidance on how to comply with the VAT law in UAE.
  • VAT impact analysis on your ongoing projects
  • VAT Consultant Service through conferences and discussions.
  • VAT Advisory Service on call
  • VAT Consultants Service by visiting the client’s office personally.
  • Handling industry-specific issues with precise guidance to comply with the VAT law.
  • VAT filing and Processing
  • Deliver a detailed VAT impact assessment 
  • Staff training to follow VAT compliance
  • Give advice on the maintenance of data in order to be VAT compliant.
  • Make documents to apply for business authorization like POA, MOA, etc.
  • Appropriate description of Business activities in the form of declaration.
  • Calculation of the value of imports and exports by Financial experts
  • Calculate the payment of tax and deposit to Government within the due date.
  • Advice on Reverse Charge Mechanism
  • Efficient application of VAT for Cashflow Management
  • Give advice on necessary changes in your invoice structure, i.e. whether a Simplified Tax Invoice or a Standard Tax Invoice

A Simplified Tax Invoice contains fewer details, and issue: -

  • If the recipient is not registered under VAT or
  • If the supply of the registered recipient does not exceed AED 10,000 

A Standard Tax Invoice contains wide details of the VAT-registered person and issued if the supply exceeds the limit of AED 10,000.

  • Give advice on changes or updates in your accounting system, like, 

Configuring the system to produce valid VAT invoices, VAT returns and statistical returns

Exclusion of the financial services with the right to recover input VAT at a specific rate determined

Submission of intra-GCC transactions.

How proper bookkeeping & accounting helps VAT filing?

  • Quarterly closing of books of accounts gives a clear idea of VAT report.
  • For any future tax audit by the authority, it will be easy to provide the exact details because of the proper maintenance of the books of accounts. 

The UAE business is confronting a number of challenges while applying VAT in the business. CDA team includes experienced chartered accountants as their tax advisers who have relevant industry-specific experience in taxation complying with UAE Laws to meet their VAT filing requirements. We are committed to providing the best VAT consultancy Services in Dubai to the clients in compliance with the rules and regulations of the FTA. By availing CDA VAT consultancy services in Dubai, you are getting access to the best possible means to fix the VAT structure that facilitates the entire VAT processes including VAT registration, VAT record keeping and maintenance, VAT return filing, VAT accounting, VAT deregistration and everything related to the Value-added tax in UAE. 

CDA offers a wide range of services that include CFO Services, Auditing Services, Accounting & Bookkeeping Services, Accounting Software services, Due Diligence Services, VAT Return Filing & VAT Consultancy services.

If you have any queries regarding your firm’s VAT related issues or about your current business, feel good to contact us. CDA is there for your assistance! 

Our expert will give you one-hour Free Consultation to keep your uncertainties away!

Frequently Asked Questions [FAQ]

1. Is VAT applicable on import of services?

Yes, it is applicable. It will be accounted under the Reverse Charge Mechanism. 

2. If the supplier is in KSA and IT services are exported to a UAE based company, how is UAE VAT treated in this scenario?

Reverse Charge Mechanism is applicable to this scenario. Since the service is imported from a GCC country and the place of supply is in the UAE.

3. How is VAT treated on the export of goods by suppliers via vessels/ship and the export of services?

It will be considered as supplies subject to zero-rated VAT if certain conditions are met.

In case of services, the place of residence of the service recipient should not be an implementing state and should be outside the State when the service is performed. Also, the services should not be directly linked to real estate or moveable personal assets (at the time of performing the service) in UAE.

While for the supply of goods, the following conditions are to be met:

Direct Export – Exporter arranges for the transport

1. Physical export of goods to a place outside the implementing state or the goods must be placed in customs suspension within 90 days (3 months) of the date of supply.

2. Official, as well as commercial evidence, are to be kept by the exporter or the overseas customer shall provide the exporter with a copy of the evidence.

Indirect Export – Overseas customer arranges for goods collection

1. Physical export of goods to a place outside the implementing state or the goods must be placed in customs suspension within 90 days (3 months) of the date of supply.

2. The overseas customer shall provide the exporter with a copy of the official and commercial evidence.

3. Unless for preparing the goods for export or customs suspension, goods are not to be used or altered on the period between supply and export/customs suspension.

4. Goods should not leave the state in possession of a passenger or a crew member of ship or aircraft.

4. Whether annual maintenance charges for services rendered to the residential and commercial property are taxable supplies?

Annual maintenance service charges regardless of whether the property is residential or commercial will be subject to the standard VAT rate of 5%.

5. Whether special medical services such as cosmetics, dentistry, plastic surgery are taxable at zero rates?

Special medical services such as cosmetics, dentistry, plastic surgery do not constitute basic healthcare services and related goods and services as specified in the VAT regulations and therefore are subject to a standard VAT rate of 5%.

6. Why is the place of supply important in the case of Intra GCC transactions?

For Intra GCC transactions, the place of supply determines if the supply is made in the UAE or outside UAE (GCC). This helps to identify under which jurisdiction VAT is liable for payment by the taxable person.

To state one example: Company A, registered business in UAE, exports goods to Company B registered business in KSA. Here the place of supply is KSA. Hence KSA VAT would be charged.

While if Company B is not registered for tax, two scenarios arise considering the mandatory registration threshold in KSA:

  • Total value of export by the supplier is below the mandatory registration threshold – Place of supply is UAE
  • Total value of export by supplier exceeds the mandatory registration threshold – Place of supply is KSA

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