we provide following vat/tax services and consultancy

  • Tax Agent
  • Tax Audit
  • VAT Implementation
  • VAT Return Filling
  • VAT Registration
  • VAT Refund
  • Foreign Business Refund Of VAT
  • VAT Advisory
  • Excise Tax Registration
  • Excise Tax Advisory
  • International Taxation

Value Added Tax

UAE government has announced that UAE will be implementing Value added tax (VAT) from 1st January 2018.

WHAT BUSINESSES NEED TO DO TO PREPARE FOR VAT IMPLEMENTATION?

  • Review business activities and understand major areas of impact;
  • Assess capability of existing systems
  • Get professional help to implement right systems
  • Maintain financial records in a proper manner
  • Incorporate a robust accounting system that has a VAT module
  • Review all legal agreements
  • Undertake training

HOW CAN Al HADI ACCOUNTS & TAX CONSULTANTS ASSIST?

  • VAT impact analysis for your business
  • Advice and training on VAT and its implementation
  • Industry specific technical training
  • Assist in maintaining accurate financial accounts to comply with VAT regulations
  • Advice on proper accounting software system which takes into account VAT and assist with implementation of the same
  • Once final VAT law is implemented, Al Hadi ATC can assist in
    • Registration of your business with Federal Tax authority
    • Preparation and filing of VAT returns
    • Handling all the dealings with Federal Tax authority

 

VAT Registration:

Values added Tax was implemented in UAE from 1st January 2018. Value-Added Tax or VAT is a tax on the consumption or use of goods and services levied at the point of sale. VAT is a form of indirect tax and is used in more than 180 countries around the world.

VAT is charged at each step of the ‘supply chain’. End consumers generally bear the VAT cost while registered businesses collect and account for the tax, in a way acting as a tax collector on behalf of the Federal Tax Authority.

Only VAT registered businesses will need to charge and account for VAT

Registration Types:

Any business, which exceeds mandatory or voluntary registration thresholds, may be required or may be able to register for VAT

The definition of business embraces most forms of activity and includes any activity conducted regularly or on an ongoing basis, e.g. industrial, commercial, professional, trade, etc

Mandatory Registration:

Any business that meets the below criterion must register,

  • The total value of their taxable supplies made within the UAE exceeds the mandatory registration threshold over the previous 12 month period, or
  • They anticipate making taxable supplies with a value exceeding the mandatory registration threshold in the next 30 days.
  • The mandatory registration threshold is AED 375,000

Voluntary Registration:

Any business that meets the below criterion MAY register (and does not fall under Mandatory Registration threshold),

  • The total value of their taxable supplies or taxable expenditure in the previous 12 months exceeds the voluntary registration threshold, or
  • They anticipate that the total value of their taxable supplies or taxable expenditure will exceed the voluntary registration threshold in the next 30 days.
  • The voluntary registration threshold is AED 187,500.

VAT Advisory:

UAE has recently introduced Tax in the country. Excise Tax was introduced with effect from 1st October 2017 and Value Added Tax (VAT) has just taken its course from 1st January 2018.

The rate of Excise tax for carbonated drinks is applicable at 50% and it 100% applicable for tobacco and energy drinks. But, at the same time the VAT rate is applicable at just a minimal rate of 5%, which is the lowest tax rate among other parts of the world.

As VAT is a newly adopted concept in the region, it requires qualified and experienced Tax professionals’ advise to support the businesses especially, while complying in the initial stages of this transition. Al Hadi Accounts & Tax Consultants provides experienced chartered accountants as their tax advisors. Tax Experts have relevant industry specific experience in taxation complying with international standards.

Al Hadi ATC has tax experts who can assist the clients with VAT transaction advisory services, which cover the below steps:

  • Business operating model
  • Business process and operations
  • Place of supply
  • Time of supply
  • IT systems
  • Compliance risk
  • Specific scenario arising out of specific operational transactions

VAT Returns Filing:

VAT Returns Filing is done through online portal of the Federal Tax Authority (FTA) available under e-services.

The form used for VAT return filing is called Form VAT 201. A taxable person is responsible to submit VAT return in the UAE in the prescribed format given by the FTA. Every taxable person is required to submit the VAT Return within 28 days from the end of each Tax period prescribed by the FTA. This must be in accordance with the provisions of the UAE VAT law. The taxable person is also liable to remit the amount of tax due to the FTA within the time frame specified by the UAE VAT Law; ie within 28 days from the end of each tax period.

How Al Hadi Accounts & Tax Consultants assists you with VAT Return filing?

Our Tax professionals can support you in the following areas:

  • We will visit your office on a periodical basis (weekly /monthly/ Quarterly) to compile the information for filing the VAT Return. At the end of each VAT return period, we prepare the VAT return of behalf of your company in accordance with the provisions of UAE VAT law.
  • We review and verify selected sample VAT related transactions recorded by the Entity during the tax period to ensure that correct VAT amount is charged on sales as Output tax, and that VAT charged by the supplier is correctly claimed/accounted.
  • We perform random review of document maintenance by the entity as per the guidelines provided by the Federal Tax Authority in United Arab Emirates to ensure that compliance is adhered with.
  • We ensure that the VAT returns are filed within the specified time in each tax period.