UAE VALUE ADDED TAX
IMMIGRATION | INVESTMENT | ACCOUNTING
Value Added Tax for Businesses in the UAE
On January 1, 2018, the United Arab Emirates implemented a new indirect tax known as the Value Added Tax (VAT) in UAE, with a rate of 5% on goods and services. By including an extra source of income in the wake of the oil crisis, the GCC countries’ VAT policy may broaden their economic horizons. By switching to a more sustainable consumption system, this new source of funding will be used for high-quality public services. Additionally, it seeks to lessen the government’s reliance on oil and other hydrocarbons as an income source. In order to make activities relating to Value Added Tax registration, deregistration, accounting, return filing, advisory services, etc. easier, VAT consultancies in the UAE offer a variety of VAT services throughout the Emirates. The UAE’s taxation structure has undergone significant modifications as a result of the installation of VAT. Using right VAT services in the UAE enables companies to reduce the risk of making needless tax payments, keep accurate VAT records, and keep track of any updates surrounding VAT filing.
What is VAT?
Value Added Tax (VAT) is a transaction-based indirect tax which is levied 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.
A business must register for VAT if the taxable supplies and imports exceed the mandatory registration threshold of AED 375,000. Furthermore, a business may choose to register for VAT voluntarily where the total value of its taxable supplies and imports (or taxable expenses) is in excess of the voluntary registration threshold of AED 187,500.
Once the business has registered for VAT in the UAE, it is required to file its VAT return and make related VAT payments within 28 days from the end of the tax period.
Prism Consultancy Co Middle East DMCC is offering high quality Vat-related services to businesses.
The following services are being offered:
- Vat Registration
- Vat De-Registration
- Vat Amendment
- Vat report preparation
- Vat return filing
- Vat refund application
- Advice on Vat issues
TAX PROBLEMS IN UAE?
Let our Accounting Team help you find the Best Solution
TAX PROBLEMS IN UAE?
Let our Accounting Team help you find the Best Solution
