VAT Consultancy Services in UAE
What is VAT?
How VAT Works?
|Cost||VAT 5%||Total||Selling Price||VAT 5%||Total||Input VAT||Output VAT||VAT 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.
- 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.
- 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
- 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 & Book Keeping
- 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.