VAT Consultancy Services

vat consultancy services in uae
vat consultancy services in UAE

VAT Consultancy Services in UAE

What is VAT?

 VAT (Value added tax) is a tax that imposed on taxable business owners on the import and also on the supply of Goods and Services at each stage of production or distribution, including the Deemed Supply.
In some countries, it is Goods and service tax (GST). This tax is accessed incrementally. The amount of tax user pays depends upon the value of goods and services at each stage of production.
Bookkeeping and accounting firms in Dubai at present need to follow the VAT rules and regulations as well auditing the books and records for the client account.


How VAT Works?

VAT is imposing at each point of sale till it sold to end customers. The VAT in UAE is a 5% rate for all goods and services. For any purchase tax paid on purchase is’Input Tax Credit’ or ‘input VAT’. And the VAT collected on sales knows as ‘Output VAT’. Input vat is adjusted with output vat so in nutshell the entire tax is paid by the consumer.

For Example

CostVAT 5%TotalSelling PriceVAT 5%TotalInput VATOutput VATVAT Payable=Output VAT-Input VAT
  • In the above example, the manufacturer pays 500 on which 5% VAT is applicable on purchase of raw Material and he sold product to distributor 1000 AED + 5% VAT. So, the Manufacturer needs to adjust Input VAT and Output Vat and balance(Output VAT –Input VAT) i.e 25 AED will be payable to FDA.
  • Now, distributors sell Product to Retailer 1500 AED + %vat. Then distributor Pay net payable Vat amount to govt.
  • And then retailer sells the product to the end customer at 2000AED+5 % VAT.

Now, in this example, the total tax paid by all business supply chains from supplier to retailer is 100 which is the amount of VAT paid by a consumer. It means the entire tax is paid by the consumer.

When VAT is Implemented

From the first of January 2018, VAT is introduced in UAE.

Who all need to Register for VAT
  • And any Business owner whose yearly income exceeds 375,000 required to fill their VAT enlistment online applications.
  • If your taxable turnover, is less than AED 375,000, but more than AED 187,500, you can register for VAT voluntarily.
  • However, there are certain supplies such as healthcare and education services, financial services, insurance, sale and lease of residential property and domestic public transportation is either zero-rated or exempted for VAT in UAE.
Compliance required Under VAT
 As a businessman, you have made game plans for VAT, it is important to aware of the fact that how VAT will affect your company. If you are looking for VAT Consultancy Services in UAE that help you in VAT consistency?  Elevate provides the best VAT Consultation in Dubai and understands the client’s needs.
VAT consultancy services UAE are confronting calm the businesses are facing number challenges. While implementing, VAT in the business stream to ensure that they are VAT compliant. We served and serving clients with the best  VAT solutions.
We are lucky to be a part of Dubai VAT consultancy services. Elevate, An accounting company in Dubai has a team of experienced chartered accountants to serve our clients as their tax advisers. Our Agent Approval Number (TAAN)20007621.
End-customer is generally affected by the use of obligation at any rate of business plans. We are offering VAT Consultancy Services in UAE for all businesses. Some of the mandatory compliance’s of VAT
  • Mandatory registration for VAT for all businesses exceeding the VAT registration threshold.
  • Filing of periodic VAT returns with the tax authorities (either monthly or quarterly).
  • Remitting any VAT payable by a specified date.
  • Record keeping in respect of all business transactions:
  • Tax invoices
  • Debit or credit notes
  • Import and export records
  • Records of goods/services provided for free or allocated for private use
  • Zero-rated or VAT exempt supplies and purchases

VAT Registration Process

  • Create an e-Services account with the FTA
  • Verify your e-Service account.
  • Login to your e-Services account.
  • Complete the VAT registration form-The online VAT registration form contains 8 sections
    • About the applicant
    • Details of the applicant
    • Contact details
    • Banking details
    • Business relationships
    • About the VAT registration
    • Declaration
  • Review and Submit your VAT registration application.
  • Review the progress of your VAT registration application.
  • If required resubmit the Application.

Elevate Business Solutions VAT Consultancy Services in UAE:

  • VAT prospective Accounting & Bookkeeping
  • Review of Purchase Invoices to confirm the input VAT
  • Review of Sales Invoices to confirm it matches with FTA rules and regulation
  • Internal VAT Audit
  •  VAT Return filing assistance
  •  Assisting with the payment process to FTA
  • Ongoing VAT consulting
  • VAT Training
  • VAT Registration & Audit.
  • Revenue Report Preparation for FTA submission.