VAT Services
In Dubai UAE, Audit Zone is the leading auditing and accounting firm that offers a wide range of VAT services to small or large companies. We have a team of skilled tax professionals who help our clients stay on the right side of tax regulations in the UAE.
Our VAT services in Dubai, UAE, include:
- VAT registration: In the United Arab Emirates, we help companies register for VAT with the FTA. We help them get relevant documents and approvals, among others, to assist them in fulfilling their compliance obligations.
- VAT compliance: As a result, we always assist our customers in complying with UAE’s VAT laws.3 We help businesses with the relevant record-keeping tax calculation and file the annual VAT returns, ensuring that they comply with relevant laws.
- VAT advisory services: The experienced tax specialists guide our customers on how VAT influences their commercial activities and identify VAT problems and chances for them. In addition, we train businesses on VAT to allow them to understand what is expected of them regarding payment.
- VAT audit: In the UAE, we offer VAT audit services to ensure that organisations observe every VAT regulation. We also verify VAT returns and related records to ascertain if businesses followed the correct procedures in calculating and reporting the collected VAT.
At Audit Zone, we appreciate our clients’ problems with VAT compliance. We provide a holistic range of VAT services to businesses in Dubai UAE, such as compliance with all VAT laws and ensuring minimal tax amount due.
What are Goods and services under VAT in Dubai?
As per the Federal Tax Authority (FTA) in the UAE, Goods and Services under Value Added Tax (VAT) are classified into three categories:
- Taxable Supplies: The standard rate is a VAT charged at 5% for goods or services. Almost all UAE supplies are taxable, including electronic items, car and furniture, food and beer, entertainment, telephone service and other relevant products.
- Zero-rated Supplies: Zero-rated goods or services are subject to VAT. Some of the zero-rated products include foodstuffs, medical gadgets, certain educational services, etc.
Exempt Supplies: Exempted goods or services not taxed with VAT. Exempt: Residential property, transport on an own/local basis, etc.
VAT Refund in Dubai UAE
The value-added tax (VAT) is one of the consumption taxes imposed on most commodities and services purchased in Dubai, UAE. In some cases, a person can apply for VAT refunds. These include businesses dealing with international trade, which will be required to pay input VAT in a different taxation jurisdiction from their VAT registration.
Similarly, in Dubai, there are VAT provisions whereby businesses can apply for refunds on the eligible goods and services acquired within the country. However, the eligible goods and services must not be used in any business activity undertaken within the UAE by a non-UAE person intending to export from the GCC countries.
In the United Arab Emirates, the FTA manages the VAT refund scheme, and the applicant has to apply via the e-Services platform on the FTA website. This is what they said about it: their FTA will assess and approve the application before paying the refund within a certain period.
However, it is vital to mention that one should meet some conditions and requirements to claim a VAT refund in Dubai, UAE. This entails furnishing proof of export (such as a Bill of Lading and an Airway bill) and submitting a VAT refund application within stipulated timelines and deadlines.
Imagine you are a player in the global market and think your company could receive some VAT reimbursement in Dubai, UAE. As a result, a respectable VAT services supplier like Audit Zone can be consulted to ascertain the right way towards the tax recovery process. We have a team of experienced VAT professionals who can assist you through the complex VAT system in Dubai and ensure that you are compliant while recovering from your maximum VAT potential.
Guidelines on Filing VAT Return in Dubai, UAE
According to the regulations on VAT Dubai, UAE, companies registered under VAT must submit their tax reports periodically. For every quarter, VAT returns should be submitted through FTA.
Here are some guidelines for filing VAT returns in Dubai, UAE:
- Know your VAT return filing deadline: This means that the filing deadline is 28 days after the end of the tax period.
- Keep accurate records: Accurate records should be kept on all VAT collected and paid for during the tax period to make proper VAT returns.
- Use VAT software: They may also include VAT calculator software that helps calculate and generate VAT returns and invoices.
- Verify your VAT return before submitting: It is vital to ensure that all details are correct before sending the VAT return out.
- Submit your VAT return on time: Failing to submit a VAT return before the deadline could lead to fines and penalties.
- Please make the payment on time: Once you file your VAT return, ensure that you pay the relevant tax on time lest you incur such penalties.
Businesses operating in Dubai, UAE, should stick to these rules as it enables them to submit correct and timely VAT returns. Businesses can also liaise with companies like Audit Zone that do the VAT return filling for them and ensure all requirements are met.
What are VAT Penalties in Dubai?
Businesses in Dubai can be penalized for different VAT infringements. Penalties may include:
- Fines.
- Interest on unpaid tax.
- Suspension or cancellation of registration.
- Even criminal charges must be implemented in extreme cases, such as tax evasion.
These comprise non-registration for VAT, late filing, submitting wrong VAT statements, and non-payment of the total payable VAT amount. Specifically, the penalties for each offence depend upon the kind of violation, the amount of tax-defaulted, and the level of culpability of a company’s representative.
What is VAT Audit in Dubai?
A VAT audit in Dubai is an unbiased evaluation of a business’s financial records along with the VAT declarations made by the registered entity to ascertain a company’s compliance with the laws and regulations regarding VAT in the United Arab Emirates. This usually entails an extensive review of a company’s bookkeeping records and VAT statements submitted to confirm that they meet the required standards. The fundamental objective of any VAT audit is to locate some mistakes or gaps in the company’s VAT paperwork and suggest remedial measures that will bring it into compliance with any relevant VAT legislation. FTA conducts value-added tax audits in the United Arab Emirates.
How does VAT in Dubai aid in Business Growth?
A VAT audit in Dubai is an unbiased evaluation of a business’s financial records along with the VAT declarations made by the registered entity to ascertain a company’s compliance with the laws and regulations regarding VAT in the United Arab Emirates. This usually entails an extensive review of a company’s bookkeeping records and VAT statements submitted to confirm that they meet the required standards. The fundamental objective of any VAT audit is to locate some mistakes or gaps in the company’s VAT paperwork and suggest remedial measures that will bring it into compliance with any relevant VAT legislation. FTA conducts value-added tax audits in the United Arab Emirates.
What are VAT Designated Zones in Dubai?
The VAT Designated Zones are places or locations outside the UAE tax boundary exempted from taxes when it comes to VAT. The designated areas are either fenced or have walls, and there is a strict monitoring process of all the incoming and outgoing products. The VAT treatment applied to businesses operating within such areas differs from that of companies elsewhere in the UAE. Dubai boasts over 20 VAT-designated zones, including the Jebel Ali Free Zone and Dubai Airport Free Zone.
What is VAT Profit Margin Scheme in Dubai?
Dubai has a unique scheme called the VAT Profit Margin Scheme, under which businesses dealing with second-hand goods, antiques, crafts, and art have the privilege of paying tax over profit margin only instead of the selling price. This strategy could alleviate some VAT burden for firms handling such commodities without input tax eligibility. Nevertheless, some stipulations are essential before one becomes a beneficiary of that scheme.
What is VAT Reverse Charge Mechanism in Dubai?
VAT reverse charge refers to collecting VAT in which the recipient of the goods or services rather than the supplier reports the VAT due on the transaction. The process helps curb fraud and enhance tax compliance for the supplier based within a different jurisdiction than the recipient. VAT reverse charge is applicable in Dubai when it comes to some goods and services like buildings, and a company should have this element considered in case of doing business within the industries involved.
What are the duties and eligibility for Tax Agent in Dubai, UAE?
A tax agent is an individual or company permitted by FTA to help individuals discharge some of their obligations and responsibilities towards some taxes in Dubai.
The duties of a tax agent in Dubai include the following:
- Registering taxpayers for VAT
- Filing of their tax returns and preparation of others’ tax returns.
- Keeping good records and tax returns for the individual’s VAT activities.
- Acting as an intermediary between the taxpayer and the FTA.
- Give tax advice and information as far as this is concerned.
To be eligible to become a tax agent in Dubai, an individual or firm must meet the following requirements:
- Have relevant competencies and expertise on tax issues.
- Have a clean criminal record.
- A valid residency visa and live in the UAE.
- Becoming licensed to offer tax agent services in the UAE through FTA by undergoing the Tax Agent Exam that the FTA and all the required criteria for licensing tax agents under the FTA administer.
Dubai’s businesses must comply with statutory deadlines such as VAT Return filing and payment. Filing late or incorrectly incurs high penalties and may be legally binding. This is why, at Audit Zone, we appreciate the need to comply with these deadlines to avoid complications.
What entails VAT return filing in Dubai?
The UAE introduced Value-Added Tax (VAT) on January 1 2018. This is a consumption or usage tax at every production or supply chain point. Every registered business in Dubai operating on a minimum annual income of AED 375,000 should be written for VAT and file returns regularly.
Filing a VAT return statement entails declaring all transactions relating to your activities in Dubai. This statement also comprises the VAT charged on goods and services, the VAT paid on purchases, and the net VAT to be deposited for recovery to the tax authority.
When are VAT return filing and payment due dates in Dubai?
Dubai sets due dates for filing and paying VAT returns. The FTA in the UAE has stipulated that VAT returns should be filed within 28 days after the period elapsed. In the UAE, businesses are expected to pay monthly or quarterly taxes based on the specific annual turnover and the value-added tax method employed by each company.
Monthly Tax Period:
Your business must file monthly VAT returns if your annual turnover in Dubai exceeds AED150 million. Monthly filers must file their taxes from the beginning to the end of the month. Hence, monthly filers must file their VAT returns by the last day, i.e., the 28th of the succeeding month.
Quarterly Tax Period:
If your business’s yearly turnover in Dubai ranges between AED 375,000 and AED 150 million, you should submit VAT returns every quarter. For the quarterly filer, a tax period starts on the first and ends on the last day of the quarter. Thus, the deadlines for VAT return submission and payment expire on the 28th day of the month immediately succeeding a quarter.
Penalties for Late or Incorrect VAT Return Filing and Payment in Dubai:
Late VAT return submission or non-compliance with tax payments could lead to penalty fines. Here are some of the penalties that you may face.
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