Value Added Tax (or VAT) is an indirect tax. It will also issue necessary guidelines and clarifications to taxpayers on federal taxes and related fines.
The FTA., whose headquarters shall be in Abu Dhabi, will collect and manage federal taxes. FTA issue guidelines and directives to taxpayers on matters relating to the anticipated VAT and other taxes imposed in the future.
It has been assigned many related functions to Tax as fully provided in Article 4 of the Decree and combating Tax Evasion and Tax Avoidance. The FTA. shall have the power to request access to any data and any available third-party information relating to a person who is subject to tax audits.
VAT is one of the most common types of consumption tax found around the World. Over 150 countries have implemented VAT (or its equivalent, Goods and Services Tax), including all 29 European Union (EU) members, Canada, New Zealand, Australia, Singapore, and Malaysia. Recently Indian Subcontinent enacted law Goods and Services Tax (GST).
VAT levied at each step of the ‘supply chain.’ Ultimate consumers generally bear the VAT cost while Businesses collect and account for the Tax, acting as a tax collector on behalf of the Government.
WHAT SHOULD KNOW ON VAT
At the beginning of 2018, the UAE government will roll out Value Added Tax in the country and levied on businesses to motivate the local economy.
The Ministry of Finance orders VAT charged on transactions for various goods and services and public infrastructure and services. For more details, contact us today.
WHAT IS EXCISE?
Importing, producing, or releasing excise goods, must register for excise tax code.
Excise Tax is currently applicable across the UAE on goods referred to as ‘excise goods’ at the following rates:
- 50% for carbonated drinks.
- 100% for tobacco products
- 100% for energy drinks
HOW WE CAN HELP AS EXPERT TAX CONSULTANT
Basic requirements under the VAT system the companies must comply:
Make sure at the time of purchase of goods or services, in the case of taxable items, whether input tax adequately charged by the vendor and details given in the invoices with VAT registration number details on it.
At the time of sale, taxable items or services apply the VAT rate on the sale value and reduce the amount of input tax to arrive at the liability amount.
Make the payment of Tax computed and due within specified date to the VAT Authorities.
Filing the VAT returns to the Government authorities by providing the Government’s relevant information within the stipulated period.
A taxable person must maintain proper stock, sales invoices, purchase bills, accounts, VAT returns, and other pertinent records to justify the Tax paid at the purchase time. Our expert VAT consultants will help to manage this task smoothly.
This mandate more control and safety on stock, invoices, bills, and records, ensure proper filing system, modification, upgradations of software, compliance of due dates for collection, payment, and remittance of Tax, filing of VAT Returns to the Government on time.
The role of best VAT consultants and the accountant will be especially important for the compliance of VAT procedures, rules, and regulations. Maintenance of accounts and records is mandatory as per new UAE company law; otherwise, authorities will impose penalties and fines for non-compliance.
Please feel free to contact us for consultation, assistance, and proposals.
We offer the following services
- VAT & excise advisory in UAE
- VAT services in Dubai
- VAT consultancy services in Dubai
- VAT consultancy services in UAE
- VAT and Excise Accounting Services
- VAT and Excise Accounting Setup Services
- VAT and Excise registration Services
- VAT and Excise Return Filing Services
- VAT and Excise Compliance and Consultancy Services
- Tax Residency Domicile Certificate Services
- Municipality Service Tax Return Filing Services
- Tax Compliance Services
- Tax Agent Services
We assist in obtaining a tax residency certificate for UAE registered all onshore companies for more than one-year-old companies and individuals having more than one-year-old residency permits.
We arrange a tax residency certificate UAE and tax domicile certificate UAE Please feel free to contact us for a tax residency certificate UAE cost and to get the tax residency certificate.
Individual persons.
Passport copy- Valid Residency Copy
- Certified Tenancy Contract/Ejari/Title Deed
- Certified Bank statements for one year
- Source of Income or Salary Certificate
- Immigration Report for Entry and Exit
- Will cost AED 2,209
Companies.
- Valid Trade License Copy
- Certified Articles of the establishment; incorporation; founding; institutionalizing or Memorandum of association
- Copy of identity card for the Company Owners or partners or directors.
- Copy of passport for the Company Owners or partners or directors.
- Copy of Residential Visa for the company owners or partners or directors.
- Certified audited report.
- Certified bank statement for at least six months during the required year.
- Certified Tenancy Contract / Title Deed.
- Will cost AED 10,209
Our expert consultants will advise and implement UAE economic substance rules and regulations to meet the ministry of finance guidelines to entities registered in the United Arab Emirates.
The first reportable period is from 1 January 2019 to 31 December 2019, subject to financial year as per the Memorandum and association and entity commencement articles.
The Regulations apply to companies and other business forms registered in the UAE, including in a Free Zone or in a Financial Free Zone, that carry out any of the following Relevant Activities.
Banking Businesses- Insurance Businesses
- Investment Fund Management Businesses
- Lease-Finance Businesses
- Headquarters Businesses
- Shipping Businesses
- Holding Company Businesses
- Intellectual Property Businesses
- Distribution and Service Centre Businesses
UAE businesses must use a ‘substance over form’ approach to determining whether they undertake a Relevant Activity and, as a result, are within the scope of the Regulations.
This determination would require the UAE business not only to consider the activities stated under their commercial license or registration certificate but also to assess the activities carried out during a financial period.
For assessment, consultation for Economic Substance Test UAE and implementation of UAE economic substance regulations by our expert ESR consultants, please contact us or e-mail us to info@alphaequitymc.com
