FTA APPROVED TAX AGENCY
VAT Returns deadline is 28th of every month. Excise Tax Returns deadline is 15th of every month ESR Notification Submission deadline, 6 months from the end of the financial year ESR Report Submission deadline, 12 months from the end of the financial year Click here to know the Foreign Exchange (FX) rates applicable for VAT from the UAE Central Bank website
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VAT

Value Added Tax (VAT)

Value Added Tax or VAT is one of the most common types of consumption tax found around the world. Over 150 countries have implemented VAT. It includes the European Union (EU), UK, Canada, New Zealand, Australia, Singapore, Malaysia, India, USA, and a host of countries.

Value Added Tax is an indirect tax which is levied on the supply of goods and services. The VAT was introduced in the UAE on 1st January 2018. VAT provides UAE with a new source of income, which can be used to maintain or improve public services. It also helps the government move towards its vision of reducing dependence on income derived from oil and other hydrocarbons.

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VAT in the United Arab Emirates

Vat Consultancy Services in Dubai

Value Added Tax (VAT) is an indirect tax. It is a type of general consumption tax that is collected based on the value added at each stage of production or distribution/sales. It is usually implemented as a destination-based tax.

Vat Consultancy Services in Dubai

VAT is applicable to the majority of transactions in goods and services. There are only a few items exempted from VAT in the UAE, few other items are zero-rated and the rest of the items are standard rated.

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Impact of VAT on businesses

Vat Consultancy Services in Dubai
Vat Consultancy Services in Dubai

All businesses have to carefully record their business income, costs, assets, liabilities and associated VAT charges irrespective of the size of the operations.

Vat Consultancy Services in Dubai
Accounting Firms

Registered businesses and traders will charge VAT at the prevailing rate on all of their sale of goods and services (output tax) and incur VAT on goods/services that they buy from suppliers (input tax).

Criteria for registering for VAT

A business must register for VAT if its taxable supplies and imports or taxable expenses exceeds AED 375,000 during last 12 months (Mandatory Registration).

It is optional for businesses whose taxable supplies and imports or taxable expenses exceed AED 187,500 but do not exceed AED 375,000 during last 12 months (Voluntary Registration).

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Services offered in Value Added Tax (VAT) by Spectrum

Accounting Firms

Registration for Tax Registration Number (TRN)

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Accounting Firms

VAT Implementation in the Organization

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Accounting Firms

VAT Returns Filing

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Accounting Firms

VAT Review

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Accounting Firms

VAT Refund
Application

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Accounting Firms

Voluntary Disclosure

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Accounting Firms

VAT Health
Checkup

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Accounting Firms

VAT De-Registration

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Accounting Firms

VAT Consultancy

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Types Of VAT Consultancy Services That We Are Providing

  1. VAT implementation in the organization:
    2. To implement VAT, we'll assess if group or standalone registration is best. We'll review your accounting system and create appropriate groupings, charts, reports, and a tax invoice system.
  2. VAT Registration: 
    3. Companies with taxable transactions should register for VAT voluntarily if their previous 12 months' taxable sales or expenses reach or are expected to reach AED 187,500 in the next 30 days. Registration is mandatory if the taxable sales or expenses in the previous 12 months reach or are expected to reach AED 375,000 in the next 30 days.
  3. VAT Filing: 
    4. Spectrum's team can review business transactions and assist in filing VAT returns on time to avoid penalties. We can advise on compliance with VAT law, including tax invoices, transaction recording, and record-keeping. Visit us to learn more about VAT law requirements.
  4. VAT Review: 
    5. We offer a comprehensive VAT review that includes: - A review of the company's books of accounts and accounting software system to ensure compliance with UAE VAT law. - Verification that accounting software can handle proper tax invoices, credit notes, and reverse charge entries. - Calculation of output and input tax entries following Federal Tax Authority regulations. Our expert team ensures that your business is compliant with VAT regulations, reducing your risk exposure and avoiding penalties.
  5. VAT Refund:
    6. If your input tax on a VAT return is higher than the output tax, the taxpayer can request for VAT refund by completing 'Form VAT311'. 
  6. VAT Voluntary Disclosure:
    7. Voluntary Disclosure for VAT lets taxpayers rectify errors in their VAT returns. It promotes tax compliance and transparency. Taxpayers should inform the FTA of discrepancies in their tax return, assessment, or refund application. It reduces penalties and shows commitment to good governance.
  7. VAT Health Checkup:
    8. Performing a VAT Health Checkup is crucial to identify any errors in VAT accounting. Any mistake can result in heavy fines imposed by the FTA. As a business owner, it's your responsibility to ensure that your business is VAT-compliant.
  8. VAT Deregistration:
    9. When your company falls under any category of VAT deregistration, we will assist you with VAT Deregistration on time to avoid the penalties. De-registration cancels a taxable person's VAT registration and number. It can be done by the person or the FTA if certain conditions are met.

How Spectrum can help you?

  • Spectrum Auditing and Accounting is an end-to-end accounting and audit services company and is a registered Tax Agent from Federal Tax Agency, UAE, based in Dubai. We offer VAT Agency & Audit services in Dubai, Abu Dhabi, Sharjah, Ras Al Khaimah, Fujairah, Ajman, Umm Al Quwain covering the whole of UAE.
  • Apart from the mandatory Value Added Tax (VAT), we also specialize in a spectrum of services which includes Accounting, Auditing, Economic Substance Regulations (ESR), Mergers and Acquisitions (M&A), Company Formation and Liquidation, Country by Country Reporting (CbCR), Business Advisory Services and other business services. Our magnitude of experience, competence and reputation makes us a distinctive world-class accounting service provider.

List Of Requirements For Vat Registration

Value Added Tax or VAT in UAE has brought changes in the business environment by emphasising the need to prioritise the way book keeping is handled by a company. VAT has ensured not to hurt small businesses which are left unaffected. Whereas any business above the prescribed threshold is mandated to register if it crosses the limit and de-register in case the business is not doing well for them. Keeping in mind all these, we have compiled a list of requirements that are needed to fulfil the VAT registration process. These are the general documents that are requested by us to initiate the VAT process.

Following is the initial list of requirements to apply for VAT registration with UAE FTA

  1. Email ID and mobile number to create online account with FTA
  2. Trade license, partners page, and commercial register
  3. Full address and phone number of the company
  4. Memorandum of Association
  5. Partners, Passport, Visa, and Emirates ID
  6. Details of the manager (CEO or Equivalent) – Passport and Emirates ID
  7. Bank Account details (Name, A/C number, IBAN number, address)
  8. Ejari of the office
  9. Turnover & expenses of the company from 1 Jan 2017 till date
  10. Scanned copies of all the sales invoice copies and purchase/ expenses invoice
  11. Expected turnover & expenses during next 30 days along with the supporting documents
  12. Financial statements
  13. Authorized Signatory Name and Mobile Number

Additional requirements based on applicability to the company/ individual:

  1. Do you intend to Import Export Goods or Services? Any of the imports will be from any GCC country?
  2. Do you have a Custom Number? If yes, kindly provide the certificate
  3. Do you want to create Tax Group?
  4. Are You (or any of the Directories or Partners of the applicant) currently involved in (or in the Past 5 Years been involved in) any other business resident in the UAE, either individually or as a director or partner in that business? If yes, kindly provide the details of the same.
  5. Do you expect the VAT on your expenses to regularly exceed the VAT on your taxable supplies?

Furthermore, we are always ready to help you address any queries pertaining to your VAT work. Spectrum is your one stop resource to get your issues sorted out. We are pioneers of Value Added Tax in UAE since the time of its inception in this region. Please call +971 4 2699 329 or email Spectrum at [email protected] to know more.

FAQ's

VAT consultancy services in Dubai offer businesses guidance on the UAE Value Added Tax (VAT) compliance. These services can include assistance with VAT registration, preparation and filing of VAT returns, refund, deregistration, VAT planning, and audit support.

Any business (liable to register or registered voluntarily) that is liable to pay VAT and eligible to claim input in Dubai can benefit from VAT consultancy services.

The standard rate of VAT in all the Emirates of UAE (including Dubai) is 5%

A VAT consultancy can help your business to navigate the complexities of VAT compliance. They can guide you in understanding, implementing, and adhering to VAT regulations, ensuring compliance and minimizing risks.

Yes, many VAT consultancy service providers can provide support during a VAT audit. They can help in preparing the necessary documentation, represent your business during the audit process, and assist with any post-audit actions.

As per the Federal Tax Authority regulations as of 2021, VAT returns need to be filed quarterly based on the VAT periods as directed by the FTA. Generally, VAT returns need to be filed on or before the 28th day of the month following the relevant quarter.

Yes, a VAT consultancy can guide your business through the process of appealing a VAT decision or resolving a dispute with the tax authorities.

VAT consultancies are experienced in assessing businesses' tax practices. They can identify areas where you may be at risk for non-compliance and suggest corrective actions to mitigate these risks.

Yes, many VAT consultancies offer training services. They can provide in-depth training to your staff on VAT rules, regulations, and best practices for compliance.

Yes, VAT consultancies can guide international businesses through the process of complying with VAT regulations in Dubai. They can provide insights into local tax laws and assist with all aspects of VAT registration, reporting, and compliance.

  • On-time VAT updates: Since the law of Value Added Tax keeps on updating, it is always advisable to have guidance from the consultants providing real-time updates which would be available on their respective websites.
  • Industrial experience: The experience of the consultancy will give you an idea about how good they offer the services. Consultancies having a reasonable number of years of experience are found to have a profound knowledge of the industry.
  • Goodwill of the consultancy: Learn about the goodwill of the consultancy through various analyses and clientele networks. The online reviews can also give you an understanding of their position in the market.
  • Clientele communication: Every consultancy must have excellent and prompt communication with their clients. The consultancy should gather all the relevant information of the business and analyze it to provide an output on a long-term basis.
  • Pricing of services: Though the services are remarkable, if the consultancy quotes a price too high, no business can accept it. Have a better understanding of the skills and techniques they will have to put in to satisfy the said scope of work.

Look no further than Spectrum Accounting LLC. Our team of experts is always available to provide reliable and consistent support to ensure your business is compliant and successful. Choose Spectrum Accounting for all your VAT needs!

Yes. VAT is applicable for the services in UAE generally at 5% and 0% for certain types of transactions.

  • Certain financial services.
  • Supply of residential units (lease or sale), if such supply is not subject to zero-rate.
  • Supply of Bare land.
  • Local passenger transport.

Yes. You can claim the input VAT on consultancy services if you are a VAT registrant in the UAE.

It is crucial to note that the fee for VAT registration differs significantly from one consultancy to another. It is imperative to conduct thorough research and find a consultancy that meets your budget. We offer a reasonable fee for VAT registration services in the UAE.

Non-compliance with the VAT regulations will reflect penalties that are decided by the Federal Tax Authority as mentioned in the federal decree law.

Yes. We can assist businesses to get their VAT registration done on time.

Spectrum maintains a good relationship with clients and provides them with real-time updates on applicable VAT laws.

We provide VAT services to all types of industries not only Dubai but also all over the UAE.

Yes. A VAT consultant can help your business to get your input VAT recovery.

Discover the quickest way to get answers to your questions by submitting your inquiry on our website. Our team will promptly respond with the information you need to make informed decisions.

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