Welcome to Business One – Your Trusted VAT Experts in Dubai
Maneuvering around the UAE’s Value Added Tax (VAT) regulations might appear challenging. At Business One Consultancy, we specialize in providing VAT Services in Dubai and making the process hassle-free. Our team of professionals are ready to assist you through every detail during registration, planning and compliance stages.
Understanding VAT in Dubai
VAT was introduced in January 2018, as part of the UAE’s steps towards diversification of the economy. A 5% tax is applicable on most goods and services and adherence is mandatory for companies meeting the annual turnover threshold.
VAT is levied on the consumption of goods and services at each stage of the supply chain, from production to distribution to the final consumer. Businesses are required to register for VAT if their annual taxable supplies exceed the mandatory registration threshold.
Certain goods and services may be exempt from VAT, such as healthcare, education, residential property sales and rentals, and local transportation.
Businesses registered for VAT are required to charge VAT on their taxable supplies, maintain proper accounting records, file VAT returns, and remit the VAT collected to the government.
Key Aspects of Value Added Tax
- Applicability:
- The 5% standard rate is applicable on goods & services.
- Some goods and services are zero-rated, which include specific health care, educational services, exports, and international transport. However, depending on the industry they may or may not be still required to register for VAT and file returns.
- Registration:
- Businesses need to register if their taxable supply exceeds AED 375,000 per annum.
- The registration is done by the FTA portal.
- Post registration, a TRN is issued, which is a unique tax registration number.
- Filing and Compliance:
- The filing process involves calculating the VAT collected from sales and input tax.
- The businesses have to pay net VAT liability in 28 days.
- The businesses that are registered must file a VAT return which is dependent on whether or not their annual turnover meets the specified threshold.
- VAT returns are submitted via the FTA portal.
- Record Keeping:
- We provide outstanding VAT services in dubai.
- The businesses must maintain the records of all the purchases, sales, and VAT collected and paid.
- These records must be kept safe for 5 years so they are available for inspection by the FTA.
When to Register for VAT?
| Compulsory Registration | Voluntary Registration |
|---|---|
All businesses which exceed taxable supplies over AED 375,000 have to register for VAT. This is mandatory if the threshold has been met in the past 12 months or will be met in the next 30 days. | Businesses may choose to voluntarily register for VAT if the taxable supply exceeds AED 187,500. |
VAT Registration and Deregistration
VAT Registration:
- Eligibility Assessment:
- Preparing Documentation:
- Registration via FTA Portal:
- TRN Issuance
- VAT Dubai registration is obligatory for businesses whose taxable supplies exceed AED 375,000 per year.
- Eligibility assessment means determining if the business meets the registration threshold.
- The necessary documents are gathered such as financial records and trade licenses.
- Then the VAT registration Dubai application is completed and submitted through the FTA.
- (TRN) Registration number is received which is then used for all transactions related to VAT.
VAT Deregistration:
- Eligibility Check
- Application Submission
- Compliance Review
- Businesses also need to deregister from VAT when the taxable supply falls below AED 187,500 per year.
- It includes confirming that the business is qualifying for the deregistration process.
- The Deregistration application is filed with the FTA.
- In the end, it is made sure that all the VAT returns are filed and VAT liabilities are settled before the deregistration process is completed and approved.
VAT Consultancy
- VAT Planning
- Compliance Reviews
- Transaction Advisory
- Dispute Resolution
- Our professional VAT Consultants help you to manage and optimize your VAT management.
- We conduct regular compliance checks to ensure your business is compliant with the regulations.
- Our VAT and tax advisory professionals offer guidance on implications for exports, imports, and complex supply chains.
- We assist in resolving your disputes with FTA and offer negotiations and appeals.
Why Choose Business One for Your VAT Services?
- Expert Guidance: Our VAT Consultants have years of experience in the UAE tax system.
- Proactive Approach: Our experts make sure that you are updated with the new rules and regulations, as well as compliance deadlines.
- Customized Solutions: We offer services to both small and large companies, and we understand that individual customer needs must be met, therefore we tailor each package accordingly.
At Business One, we are dedicated to providing you with exceptional customer service and ensure your business is compliant with the regulations. We handle the complexities of compliance, while you concentrate on running your business.