What is VAT?
Value Added Tax in Dubai is levied on the consumption or use of goods and services. On January 1, 2018, the UAE implemented Value Added Tax (VAT), charged at a rate of 5%. VAT will give the UAE a new source of revenue to continue providing high-quality public services. It will also assist the government in eliminating dependence on oil and other hydrocarbons as a source of revenue.
How do VAT services in Dubai work?
The examples below show the steps to collect VAT TAX in Dubai work.
- A farmer grows dates picked and sold to a processing factory.
- The farmer collects VAT from the factory.
- The factory processes the dates into dates syrup, which is sold to retail chains.
- The factory collects the VAT tax from the retail chain.
- The factory supplies processed dates to the retail outlets.
- The retail outlets collect VAT from the consumers. The retailers receive a refund on the VAT paid to the factory.
- Consumer purchases the bottle of dates syrup.
Criteria to Pay Value-Added Tax in Dubai
- If a company's taxable exports and imports exceed AED 375,000 per year, it must register for VAT.
- It is optional for companies whose annual exports and imports exceed AED 187,500 but less than AED 375,000 yearly.
- The tax a business obtains from its consumers is paid to the government. Likewise, it receives a tax return from the government for taxes paid to its suppliers.
- Multinational investors may also claim the VAT paid while visiting the UAE.
Checklist of Documents for VAT registration in Dubai
Below is the checklist of documents for VAT registration in Dubai.
- Company's Trade License.
- Complete the Company's Contact Information.
- Turnover report with invoices.
- Bank details, including IBAN.
Avail best quality Auditing and Accounting services from JAXA
The expert will help to tackle business issues by following proper Accounting and Auditing guidelines will also assist you to scale up your business. JAXA also provides various other services such as Tax Services, Payroll Services, Cash flow forecasting and many more.Know More
Advantages of VAT Services in UAE
The business will be able to get VAT refunds.
Registering for VAT will lead to your business getting noticed by the government of the country. This maximizes the chance of earning a good reputation and enhancing your company to enhance its goodwill which in turn brings in more investors for the business.
New Business Opportunities
VAT is a mandate for companies as per the UAE VAT Law. Registering a business for VAT with expert consultants ultimately completes the financial picture that is required during an internal and an external audit
Being a VAT registered business, you will be noticed more by prospective clients, which would ultimately bring more business. On the other hand, it also opens new investment doors for your business to secure its future. This is very helpful in attracting new businesses from all around the world.
VAT registration businesses get a tax registration number (TRN).
What we provide
- We help integrating VAT into business activities, the VAT procedure of JAXA Chartered Accountants will provide you with in-depth expertise regarding VAT implementation.
- JAXA subject-matter experts with industry experience are always on hand to assist you throughout the process.
- We have an experienced team of over 75+ employees and have an experience of 15+ years.
- Over a decade of quality services has made us one of the most preferred auditing and accounting firms in Dubai.
We recieve the required data from the customer.
All the required Documents are collected and analysed
A plan is devised to obtain the TRN, Vat Certificate, VAT filing and accounting, VAT return filing.
Follow up Process
There is a regular follow up at regular intervals to find out any dicrepancies and take corrective measures.
Reports File VAT return and take corrective actions.
Register for VAT and implement the VAT plan.