Business

VAT Consultancy Services in Dubai – UAE

On January 1, 2018, the United Arab Emirates adopted VAT with a 5% rate on goods and services to strengthen its economy by bringing in a new source of income for the government. This new policy aimed to reduce the government’s dependency on oil and utilize the VAT money for high-quality infrastructure development and public services. Therefore, businesses and individuals in the UAE need to understand the VAT and its implications to comply with the law. To simplify this compliance process, they require the assistance of expert VAT consultants in Dubai.

VAT consultants in UAE help with VAT-related processes such as registration, deregistration, accounting, return filing, advisory services, and others across the country. Since the implementation of VAT has brought major changes to the nation’s tax structure, utilizing the right VAT services will assist a firm keep up with the changes and reduce the risk of suffering excessive taxes.

What is VAT? What are VAT rates in the UAE?

VAT, or Value Added Tax, is an indirect tax imposed on goods and services at every point of sale. The end customer who purchases the good is the one who bears the cost. That is why is it also called the consumption tax. The business or the seller collects and reports on taxes and forwards the tax money to the government.

Since VAT is consistently applied to tax-registered companies in the UAE, both businesses and individuals need to understand the VAT rates in order to comply with tax regulations.

· Standard VAT rate – The standard rate of VAT is 5% in the UAE which is imposed on the majority of goods and services. Hence, when customers purchase taxable goods or services, they will see a 5% VAT included in the total price.

· Zero-rated supplies – Supplies with 0% VAT are categorized under zero-rated. However, businesses that have paid VAT on such supplies can still claim input tax credits. The general goods included in zero-rated supplies are medical supplies and medications, basic food items such as bread, rice, fruit, and vegetables, goods exported outside the Gulf Cooperation Council, etc.

· Exempt supplies – Certain goods and services are exempt from VAT, however, are not eligible for input tax credits. The list of exempt supplies includes financial services, public transportation, residential properties, etc.

The Federal Tax Authority (FTA) has imposed several penalties to ensure that VAT compliance is maintained in the country. Hence, businesses must ensure to follow the rules and guidelines established by the FTA to avoid any legal mishaps and errors. To learn more about FTA’s VAT penalty structure, connect with Shuraa Tax advisors.

How can VAT consultants in Dubai help?

Every company aiming to comply with the VAT legislation needs to maintain accurate financial records in order to file VAT returns on schedule and without errors. The only way to improve the VAT processes and achieve the goal is to work with a trustworthy and competent VAT consultant. A skilled VAT specialist can help your company in many ways:

· Maintaining compliance – One of the primary functions of VAT consultants in Dubai is ensuring compliance with UAE tax laws. Businesses seeking VAT services can avoid costly penalties and fines and improve their reputation and trustworthiness by staying on top of regulations and amendments.

· Efficient VAT registration – Businesses that meet the FTA-specified threshold are required to register for VAT in the UAE. VAT consultants in UAE assist in navigating the registration process and ensure that the application is submitted accurately and timely. This not only saves time for the business owner but also reduces the possibility of errors.

· Simplifying VAT filing – Filing VAT returns can be a complex procedure, especially for larger corporations. Nevertheless, VAT specialists streamline this process and help businesses submit accurate and timely returns. They also maintain prearranged records and ensure that all eligible input tax credits are claimed.

· Managing VAT payments – VAT Consultants in Dubai help businesses manage VAT payments efficiently so that cash flow is improved and overpayments are reduced. They determine the VAT liability of the business and make sure that the correct amount is paid.

· Support in VAT audits – In the event of a VAT audit by the FTA, professional assistance from VAT specialists can be extremely valuable. This could help in minimizing disruptions and potential financial consequences.

· Cost management – When you outsource your VAT-related tasks to experts, you tend to reduce operational costs, especially Small and medium-sized businesses that lack the financial resources to maintain an in-house department. VAT consultants in Dubai offer cost-effective solutions that help businesses save on their costs while focusing on their core business activities.

Want to stay compliant with FTA requirements? Seek expert VAT services from Shuraa.

Services offered by VAT consultants in Dubai

The VAT consultants in Dubai offer comprehensive VAT-related services, such as –

VAT registration

Businesses in Dubai are mandated to register for VAT. As per UAE tax regulations, companies that exceed the mandatory threshold of AED 375,000 in taxable supplies and imports within 12 months are obliged for mandatory VAT registration. On the contrary, those with taxable turnover over AED 187,500 can opt for voluntary registration. VAT consultants ensure smooth registration, thus reducing the burden for businesses and building their reputation in the market.

VAT Advisory

Businesses need to be well aware of their tax obligations, and how they can reduce the possibility of improper payment calculations or the application of incorrect tax rates. They can, thus, use the broad knowledge of VAT consultants in Dubai to navigate the complex tax system and ensure proper compliance.

VAT filing

When it comes to VAT filing, precision is paramount. Businesses must be accurate in calculating their VAT obligations and the retrieval of input tax credits. Most importantly, they must ensure the timely submission of returns. The knowledgeable experts in VAT can reduce the possibility of mistakes and errors, thus guaranteeing accurate adherence to VAT requirements.

VAT audit

Businesses in Dubai are provided a 5-day window to reply to tax audits by the FTA. Hence, they can seek help from VAT consultants to prepare for demanding tax audits and understand the required supporting documents. The VAT services in Dubai entail a careful review of financial records and documents confirming accuracy for a seamless audit.

VAT deregistration

VAT Deregistration refers to the process of terminating a company’s VAT registration with the FTA. Regardless of the reason for the shutdown of operations, companies follow the right processes and fulfill the specified requirements to avoid legal penalties for non-compliance. VAT consultants guarantee adherence to the legal standards of the FTA and offer professional assistance in guiding their clients through the complex process of liquidation.

Shuraa Tax – Your one-stop VAT specialist

In conclusion, it is a significant requirement for businesses in the UAE to meet the complex tax regulations and guarantee compliance through meticulous record-keeping and timely submission. Professional guidance from the best like Shuraa Tax and Accounting consultants can simplify the process and help businesses stay away from any legal troubles.

They have a team of highly qualified VAT consultants who provide comprehensive support and guidance on all VAT-related concerns, thus ensuring that the company abides by the rules and regulations of the FTA. Experience the highest standards of excellence from the tax specialists at Shuraa by visiting www.shuraatax.com

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