The United Arab Emirates announced the Value Added Tax (VAT) in the UAE on 1^st January 2018 with a rate of 5% on all types of products and services. This tax is applicable or expenditure and use of goods and services at each point of sale. Businesses are obliged to collect and account for tax that is intended to aid the government.

VAT Registration

Whether voluntary or mandatory, the VAT registration process is the same. The tax authorities have a particular portal for the process where they can easily register their company. However, one has to be very mindful while undergoing the application procedure as this should be done correctly in order to get approval from authorities.

The mandatory VAT registration is applicable on a business with yearly threshold income of AED 375,000. While voluntary VAT registration is applicable for businesses that provide taxable products or services with yearly income of less AED 375,000 but more than AED 187,500. While the businesses with yearly income less than AED 187,500 does not need to register for VAT.

It is important to note that any discrepancy in the application can lead to hefty fines and/or rejection of the application. That’s why most businesses seek VAT registration service providers in UAE. Outsourcing the VAT registration task to experts in the field not only brings peace of mind to you but also helps you keep unnecessary fines and delays in approval at bay. You don’t have to take pains when you have WeSetupBusiness in your city. We have VAT specialists who are active in the field for years.

VAT Invoicing

After you get VAT registration number, your business needs to issue VAT invoice. All the businesses are required to follow the format issued by the FTA to avoid fines and penalties. Tax Registration Number (TRN) must be mentioned on all the invoices. In case, this TRN number is not mentioned on the invoice, customers should not pay VAT.

VAT Return Filing

The threat of penalties always hangs over your head when you are doing business in Dubai, UAE like the sword of Damocles. Especially when you are non-compliant to any of the rules and regulations whether knowingly or unknowingly. However, there are ways to avoid them. And outsourcing complex affairs to experts is one of them. VAT calculations can be fiendish at times. Fines are absolutely inevitable if VAT returns filing in UAE is not done with due care.

VAT return filing is mandatory for all taxable businesses and once you have registered for the VAT, you are required to file your VAT return and make your applicable VAT payments within 28 days after your tax year ends. In case of failure of timely VAT return filing or wrong filing, your business can incur fines from the FTA.

Tackling VAT return filing in Dubai, UAE is a cumbersome process and the chances of making errors or any kind of non-compliance are higher than you think. With that said, we can’t deny the fact that VAT return filing needs an expert. The taxable entities must have a thorough knowledge of the tax period and other requirements mandated by the FTA to ensure compliance while filing a VAT return in the UAE.

Not every business has an in-house team of finance experts to deal with VAT functions. And it’s not something that can be performed by jack-of-all-master-of-none ones. That’s where experienced business and management consultants in UAE such as WeSetupBusiness come and help VAT registrants in the UAE to successfully navigate the intricacies of the process.

VAT Refund

Input VAT is the tax that is payable on products or services purchased by a business or taxable person. While, the output VAT is the tax on sold products or services by the business or taxable person. If your business is paying more VAT tax as compared to the VAT tax collected from the clients, then you are eligible to claim the VAT refund.

VAT Services in Dubai

With our qualified VAT compliance professionals by your side, you don’t have to worry about your various VAT-related chores including VAT return filing.