Tax Consultancy Services - AVA International Consultants

VAT

With the announcement of the introduction of VAT in UAE from 1st January 2018, it is mandatory for the businesses to register themselves as per the criteria specified in the new tax regime. All the individuals or the firms engaged in businesses activity have to comply with the rule laid down by the Federal Tax Authority. The businesses that have not registered for VAT will neither be able to charge VAT on their sale nor will be able to claim Input VAT paid on their purchases.

It is mandatory for the businesses to register themselves if the annual turnover exceeds AED 375,000 and this threshold must have been exceeded in the last 12 months or this threshold is expected to be exceeded in next 30 days. Businesses can opt for voluntary registration if the annual turnover exceeds AED 187,500 but is below AED 375,000 and this threshold is expected to be exceeded in next 30 days.

Vat Registration

Documents Required for VAT Registration

A valid email id which shall be used as the login id for VAT registration and compliance purposes on the FTA website
Are you registering as a Tax group or a single company? (A Tax group can be formed when you have two or more separate legal entities; each of which must be resident in the UAE, that are associated and which meet specific control criteria).
Copy of valid Trade License
Certificate of Incorporation/ Registration Certificate (if applicable)
Are you registering mandatorily (where turnover is more than AED 375,000) or voluntarily (where turnover/expenses is more than AED 187,500)
Copy of emirates ID and passport of the owner/partners (all the owners/partners including sponsors)
Mobile number and email of Authorized signatory /manager
Copy of Passport and Emirates ID of the Manager (Manager as per license)
Memorandum of Association (MOA)
Contact Details of company (complete address & P.O Box with emirate)
Primary bank account details including IBAN(This will be used for VAT refund purposes)
List other business(es) of the directors/ partners in UAE in the last 5 years along with their Trade License copies (if applicable)
Do you expect to provide services which are VAT exemptlike Financial services, Supply of residential buildings through sale or lease, Supply of bare land& Supply of local passenger transport?
Copy of audited/unaudited financials for the last 12 months
Details of primary and secondary activities of the business (general description is required)
Expected revenue and expense for the next 30 days (an approximate number)
Supporting documents for customs registration in each Emirates (if applicable)
Estimated value of imports for one year from each GCC countries
Estimated value of exports for one year to each GCC countries
Whether you expect to deal with GCC suppliers or customers
If you are registered for VAT in any GCC member states and if doing business with any GCC country? (Country name, TRN, Estimated value of imports and exports (AED per year))
Do you have a trade name that differs from the name of entity (trade name along with legal name will appear on your VAT certificate)?

VAT Implementation

A thorough study and analysis of the business model is required for the effective implementation of VAT within the organization. Full understanding of the business model renders clear insight about the organization; hence it is a perquisite to identify specific rules and customer base, associated with one business. The steps for the successful implementation of VAT services can be summed up as following:

Understanding the Business model: To gain an insight to the structure of your business, our VAT experts will interact with you or will visit the organization concerned. Then, he will design a VAT Implementation plan accordingly, to suit the need.
VAT Registration: There is provision of mandatory and voluntary registration prescribed in the VAT law of UAE alongside some exemptions. Our experts will advise you about all the basic registration procedure required to comply with the law of land i.e. with VAT law of UAE. We will ensure procedural formalities done before the date prescribed by the tax authority.
Impact Analysis of VAT: Analysis of the implication of VAT on the businesses is an intrinsic step for the efficient functioning of any business, since it will provide better insight and appraisal to the management. Our study of impact of VAT will include essentials of your business such as profitability, costing and capital etc.
VAT Transaction Management: Our dedicated VAT specialists will ensure the transactions to be UAE VAT compliant for smooth functioning of your businesses. Accounting under new VAT law will involve the scrutiny of the present account system, alongside the suggestion of the apt chart of accounts with proper categorization. Our professionals will create the VAT return by following all the rules mentioned in the guidelines. All the essential assistance related to the changes incorporated in the accounting, billing and administrative process will be provided by our VAT experts in order to comply with the rules rendered by the UAE VAT authority. Similarly, all the rules rendered by the UAE VAT law will be followed accordingly by our specialists, while invoicing the VAT.
VAT Return Filing: Our support service covers proper preparation and filing of the VAT return, that involves accepting the correct tax credit against the total VAT liability with assistance on proper planning and timing of the cash flows.
VAT Compliance: Our dedicated VAT experts work cognitively and tirelessly to make the businesses VAT compliant. They possess the required skills to identify the glitches and fill the vacuum left open that might invite penalties. They ensure timely return fillings and advise suitable solutions, when in need of making VAT compliant.
VAT Amendment: VAT implementation process should be effective enough to accommodate the required amendments of the time-to-time business affairs. With every passing day, businesses try to grow and flourish, and this requires the businesses to be VAT amendment process ready. We, at United VAT, have experience of carrying out all kind of VAT amendments that you may face in the journey of reaching to your endeavor. Our oversimplified amendment process will ensure the effective functioning of your business.

VAT Return Filling

VAT return is a record or statement of the VAT paid on taxable supply of goods and services during a specified period. Usually, VAT returns are filled quarterly and sometimes on a monthly basis. As per the Federal law no. (7) of 2017 on Tax procedures, a taxable person needs to submit VAT returns in UAE with the information and data specified for Tax purpose in accordance with the form, specified by the Federal Tax Authority.

When to File VAT Return?

Timely filing of the VAT returns is essential for the registered businesses in order to be compliant with the rules and regulations laid down in the law. Every taxable person is required to submit the VAT Return within 28 days from the end of each Tax period prescribed by the FTA. This must be in accordance with the provisions of the UAE VAT law. The taxable person is also liable to remit the amount of tax due to the FTA within the time frame specified by the UAE VAT Law; ie within 28 days from the end of each tax period.

How to File VAT Return?

VAT return can be filed online using e-filing portal of Federal Tax Authority. There is no provision for filling the VAT return manually; it is entirely an online process and it has to be followed on a monthly and a quarterly basis.

Importance of VAT Return filing

It is an important mechanism for the viability of VAT system, since it works as a medium for reporting the VAT collected and paid to the revenue authorities. . VAT return filing is a formal way of reporting the VAT collected and paid during any particular period. VAT return is prepared on the basis of the documents available in the records or ledgers. VAT returns also form a basis for auditing and activities related to enforcement of VAT law.

How can we help?

Professional tax consultants and accountants play very useful role in VAT return filing. Their professional advice helps immensely to the businesses in complying with the rules and regulations laid down by the tax authority. Our dedicated tax consultancy team will unburden you with such hectic and engaging tasks that demands constant compliance. They constantly keep track of the time-frame specified by the FTA and perform the function of return filing within the stipulated time, thereby, ensuring smooth compliance of the law, and related rules and regulations.

Tax Domicile/Tax residency Certificate

To avoid double taxation by taking the advantage of Double Taxation Avoidance Agreement, eligible government entities, companies and individuals should be issued tax Residency (Tax Domicile )Certificate from the Ministry of Finance (MoF) of the UAE government. The certificate is valid for a period of one year from the date of issue.