As VAT is expected to be rolled out in the start of next year, it’s high time for businesses to make arrangements in their accounting practices to embrace this new tax regime.
For any business, it is very much essential to pay close heed to its accounting books so as to keep in line with the best accounting practices in the region. And it is really a time-consuming and lengthy task and companies tend to maintain dedicated accounting department to perform this job. This results in adding extra cost on company’s treasuries.
At UnitedVAT, we understand how important it is to make space for VAT in your existing accounting system so that your business don’t suffer any setback either temporarily or for long-term. This is why we offer result-oriented VAT accounting in Al Rashidiya, Dubai so as to provide full-fledged assistance to businesses looking to make a way out.
We are experts in economical financial offerings and our services include a wide array of financial services that cover Local Tax legislations (VAT and Excise), Professional finance support for entities and Bookkeeping to sustain the businesses and meet their requirements of compliance and internal controls.
Our foremost objective is to guide business entities focus on their core business development and leave the entire support and VAT accounting in Al Rashidiya, Dubai services to us and we will stand with them as “Partners in Success”.
Our highly skilled and industry-certified accounting professionals make VAT accounting in Al Rashidiya, Dubai a smooth affair. These VAT experts can structure your business in the most tax-efficient manner in accordance with (FTA) requirements.
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VAT in UAE is to be implemented from 1st January 2018.
- Healthcare
- Education
- Local Transport.
- Residential Real Estate, including long term leases on residential properties.
- 100 other Essential items.
Taxable person having revenue of more than AED 375,000 in year or expected in next 30 days shall be compulsorily liable to register for VAT. Optional registration limit is AED 187500 for last 12 months or next 30 days.
- VAT Registrations shall begin in Third Quarter of 2017.
Recipient of Supply must be a taxable person (i.e. end consumer cannot claim VAT refund or credit)
- Tax should be charged correctly.
- The recipient of the supply must supply the documentary evidence.
- The goods and services received are for making further taxable supplies (i.e. only business which make further sale shall be entitled to reclaim credit on VAT Paid)
- VAT input tax credit can be claimed only on the amount paid or intended to be paid in 6 months by the recipient.
The significance is that each VAT registered business entity becomes automatically the agent of the government to collect from customers and pay it back to the Government Authority. VAT is charged at each stage of the ‘supply chain’. Ultimate consumers generally bear the VAT cost. The Businesses act as tax collector for the government authorities. The difference between the VAT charged on customers and the VAT paid to suppliers will be either paid to or reclaimed from the government.
As per the official site of Ministry of Finance, UAE, it is expected that majority of the business entities will be required to file the VAT returns on quarterly basis, within one month/28 days from the end of the respective quarter.
All business entities in UAE:
a) Registered for UAE VAT or not should maintain proper records of their business transactions and ensure that all financial records are accurate and up to date.
b) Should register under UAE VAT if they are coming under eligibility criteria based on turnover.
c) All UAE VAT registered business entities should charge VAT on supply of taxable goods or services.
d) All UAE VAT registered business entities may reclaim any VAT they have paid on goods or services within the country.
e) Should maintain correct and accurate business records for government scrutiny to ensure that that business entities adhere to the mandatory requirement stipulated by the UAE VAT Law.
f) All VAT registered business entities must report the amount of VAT they collected and the amount they paid to the government on a regular basis. The Tax authority will open an online portal for submitting this record on a periodic basis (called VAT return).
If VAT charged on customers is more than the amount charged by the supplier and service providers, then the excess amount collected has to be paid to the VAT authority. Similarly, if the amount of VAT on the purchases and service providers are more than the amount charged on customers, the refund can be claimed for the difference.
As per the information available from media, the UAE government is not considering of introducing personal income tax in the country.
