Every business entity is required to be VAT compliant in order to avoid levy of heavy penalties. There are very strict provisions for non-compliance for deliberate tax avoidance, incomplete and incorrect filings by any taxable person. For being VAT compliant every business entity must obtain the VAT registration, maintain proper books and file timely returns. Theory of VAT is very simple however its application can be complex. VAT is the core competency area of the United VAT. Our team of professionals will help you in fulfilling following compliance requirements at reasonable prices
Requirements of VAT Compliance -
UAE and associate GCC nations in the form of Value Added Tax (VAT) on all goods and services at a standard rate of 5% with effect from 1st January 2018. Now the question is that Will consumers spend take a hit or it will be business as usual for the retailers and manufacturers?
The new value-added tax (VAT) is coming into effect from 1st January 2018 for the very first time in UAE, Ultimately it will affect small businesses as well, main concern of small businesses is all about the financial and operational impacts of VAT compliance, especially since they’re used to operating in a low-tax business environment. Most people have a preconceived notion that VAT is a burden for all including small businesses. However, if your business is organized with the help of a VAT expert, VAT may not be too onerous to you.
If the Annual Turnover of the company is more than AED 375,000/, it is mandatory for the company to register under UAE VAT before the end of the year 2017. Further, if the Annual Turnover is between AED 187,500 & AED 375,000/, it is optional for the company to be registered under UAE VAT law. In addition to this, if it is less than AED 187,500/, the company need not register under this law.
As per the official site of Ministry of Finance, UAE, the majority of the business entities will be required to file the VAT returns on the quarterly basis, within one month/28 days from the end of the respective quarter.
Yes, UAE VAT will be applicable to both goods and service sector.
The proposed rate of VAT in the UAE will be up to 5%.
The registered entities who are eligible to get VAT refund (When input VAT is more than output VAT) can submit the VAT returns to the authority by disclosing the same.
Every taxpayer can file the VAT returns through the online portal of the VAT. Every taxable person shall prepare and submit the tax return for each tax period to the authority and need to settle the payable tax within the timeframe specified in the tax law.