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VAT Registration Services UAE

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Value added tax (VAT) is a form of indirect tax imposed on the use or consumption of goods and services at each point of sale. VAT is one of the most common types of indirect tax which is applied in most of the countries. In UAE, FTA (Federal Tax Authority) introduced VAT on 1st January 2018, with 5% (Standard-rated) and 0% (Zero-rated) on goods and service. Ultimately, the cost is borne by the end consumer. Getting the right VAT services in Dubai and UAE helps businesses avoid the risk of unnecessary tax payments and maintain accurate VAT records and keep up-to-date with VAT returns.

The VAT policy adopted by the GCC countries potentially expands the countries’ economic scope by integrating an additional source of revenue as a result of the oil crisis. By using the right VAT services in Dubai, you can easily manage the VAT aspects of your business. The VAT introduction and excise taxes will help the Dubai diversify its sources of revenue so that the departments of governments can continue to provide great public services and to make sure of high quality of life for upcoming generation.

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What is Value Added Tax?

Value Added Tax or VAT is a tax on the expenditure or use of goods and services levied at each point of sale. Ultimately, the end-consumer will bear the costs. Organizations are required to collect and charge tax on behalf of the government. UAE VAT applies uniformly to tax-registered businesses operating both on the Dubai mainland and in free zones.

VAT Rates in Dubai

Standard-rated VAT:

standard-rated supplies are those supplies, where 5% VAT is charged at the time of delivery. A Standard-rated VAT is imposed on almost all the sectors of goods and services in the state, including imports. The standard-rated Tax applies to all supplies traded onshore where the recipient and supplier are located in the UAE. It is very important for companies to identify the taxable transactions on which the VAT rate of 5% is to be imposed. Examples:

  • Hotels and food restaurants
  • Hardware tools or construction supplies
  • Entertainment and leisure

Zero-rated VAT:

Goods and services that are taxed at a zero rate (0%) are zero-rated supplies. For zero-rated transactions, the input tax can be refunded. Examples:

  • International shipping and related supplies
  • Export of goods and services outside the UAE
  • Certain investment grade precious metals (e.g., gold, silver, 99% pure)
  • Certain educational services and related goods and services
  • Deliveries of certain sea, air and land vehicles (such as aircraft and ships)
  • Newly built residential buildings.

Exempted VAT:

Under UAE VAT, there are certain exempted goods or services notified in the implementing regulations on which VAT is not levied. This means that VAT is not charged on the supply of these goods or services. If all your transactions are in the category of exempt transactions, you do not need to register for VAT. The following goods and services are exempt from VAT:

  • Local passenger transport
  • Bare land – sale and rent
  • Residential premises – sale and rent
  • Providing certain financial services, such as life insurance

How can VAT services in UAE help you grow your business?

VAT is not an extra cost or burden for the business. Effective management or proper planning of tax collection and its implementation will give added value and cash inflows to every business. VAT services help:

  • To avoid mistakes when filing your tax return.
  • Application of input tax paid under the VAT Act.
  • Provide guidance on how to avoid fines and penalties.
  • In accordance with the law, keep accounting books for a period of 5 years.
  • Conducts tax audits to protect the company from material misstatements.
  • Get up-to-date information and training on the latest changes in VAT law and their accounting implications.
  • Provide instructions for preparing sales invoices.

Benefits of VAT Consultant services

  • Easy VAT registration and payment of VAT
  • Provide knowledge and expertise
  • It helps in the VAT planning and decision-making process
  • Dealing with the authorities on a personal level
  • Accuracy and reliability
  • VAT compliance issues and control
  • Minimization of VAT
  • Risk identification and correct solutions
  • Data recording and organization
  • Accounting and bookkeeping
  • Supplier organization
  • Client organization

Registration Process of VAT

VAT registration is compulsory for those businesses whose taxable supplies and imports exceed AED 375,000 per year. Businesses can voluntarily register for VAT if their taxable supplies and imports exceed AED 187,500 per year. Basically, a business can opt for either of two types of Dubai VAT registration process:

1. Mandatory Registration:

The threshold for mandatory business registration is AED 375,000. However, this limit does not apply to foreign organizations.

2. Voluntary Registration:

The threshold for voluntary company registration is AED 187,500.

What is VAT Return Filing?

All the organizations which are registered on VAT or the ‘taxable persons must submit a ‘VAT return’ at the end of each tax period to the FTA. Filing a VAT return is compulsory for all taxable businesses. Once you have registered for VAT in the Dubai, you are required to file your VAT return and make the associated VAT payments within 28 days of the end of your tax period. If your business fails to file a VAT return on time or files an incorrect VAT return, the business will be subject to a VAT audit and VAT fines from the FTA. Beyond View offers quality and timely VAT filing services in Dubai on a monthly and quarterly basis.

Beyond View VAT Services

In addition to providing superior VAT services in Dubai and UAE, Beyond View offers tax advisory, implementation services and tax refund services at a very reasonable fee. With a huge client base, Beyond View is recognized as the leading platform dealing with VAT services in the UAE for start-ups and established businesses in the Emirates.

Beyond View also provides accounting and bookkeeping services, account outsourcing services, internal audit services and many other services related to doing business in the UAE.

If you are looking for any VAT related services in the UAE, please do not hesitate to contact Beyond View; our VAT consultants in Dubai will always be available to provide you with the best VAT services in Dubai and the Emirates.