Will be introduced across
United Arab Emirates
on 1 January 2018
Value Added Tax (VAT) is an indirect tax on consumption and it applies to most goods and services. VAT is levied at each stage in the chain of production and distribution and is collected by businesses on behalf of the VAT authorities. VAT is ultimately paid by the end consumer.
All businesses in the UAE will need to record their financial transactions and ensure that their financial records are accurate and up to date. Businesses that meet the minimum annual turnover requirement (as evidenced by their financial records) will be required to register for VAT. Businesses that do not think that they should be VAT registered should maintain their financial records in any event, in case we need to establish whether they should be registered.
VAT-registered businesses generally:
must charge VAT on taxable goods or services they supply;
may reclaim any VAT they’ve paid on business-related goods or services;
keep a range of business records which will allow the government to check that they have got things right
If you’re a VAT-registered business you must report the amount of VAT you’ve charged and the amount of VAT you’ve paid to the government on a regular basis. It will be a formal submission and it is likely that the reporting will be made online.
If you’ve charged more VAT than you’ve paid, you have to pay the difference to the government. If you’ve paid more VAT than you’ve charged, you can reclaim the difference.
We provide VAT consultancy services with extensive experience, resources, and exposure to tax regimes of many countries to address your needs of adhering to local regulations as well as being profitable.
How to manage your books of accounts
Profit planning, in case of implementation of corporate tax
Calculation of net tax payable to local tax authorities
Calculation of refundable tax (if any)
Preparation of tax calculations
Filing of tax returns with local tax authorities
Keeping you update about all the changes in tax regulations