VAT Services in UAE

Depending on the type of business, we provide an in-depth understanding of VAT services in the UAE.

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.

Step 1

A farmer grows dates picked and sold to a processing factory.
The farmer collects VAT from the factory.

Step 2

The factory processes the dates into dates syrup, which is sold to retail chains.
The factory collects the VAT tax from the retail chain.

Step 3

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.

Step 4

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.

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Advantages of VAT Services in UAE

VAT Refunds

The business will be able to get VAT refunds.

Competing efficiency

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

VAT Threshold

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.

TRN

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.

Process

Customer Approaches

We recieve the required data from the customer.

Document Analysis

All the required Documents are collected and analysed

Planning

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.

Pepare final

Reports File VAT return and take corrective actions.

Application

Frequently Asked Questions

What is 5% VAT in UAE?

The UAE charges 5% VAT on taxable supplies of goods or services at each stage of the supply chain on tax-registered firms. Tourists in the UAE must also pay VAT at the time of purchase.

Who is exempt from VAT in the UAE?

In UAE, VAT exemptions are for specific financial services, residential construction and supply of bare land, local travelers, and so on. To be considered exempt from VAT, however, the particular conditions outlined in the UAE VAT Act and Executive Regulations must be met.

In Dubai, how can I avoid paying VAT?

Tips for UAE Businesses to Avoid Hefty VAT Penalties.

Complete VAT registration on time.
Maintain Accurate Records under UAE VAT Law.
Create accurate tax invoices.
Apply for VAT Deregistration as soon as possible.
Fill out your VAT returns within the timeframe specified.
Ensure the accuracy of your tax returns.
Keep up to date on tax regulations.

How do I claim my VAT refund in UAE?

Log in to the FTA e-Services Portal using your username and password. Refund forms can be accessed under the VAT tab, followed by VAT311 - VAT Refunds. Under the 'Request VAT Refund' box, access the form by clicking on the 'VAT311 – New Tax Refund' button per the screenshot.

Please fill in all the required details in the form. Any questions marked with an asterisk (*) are mandatory and must be completed to submit the form. You will be able to retrieve some fields automatically. Click on the 'Submit' button after completing the form.

What is the purpose of claiming the VAT?

Taxable Persons must file a VAT return summarizing the VAT due to the FTA for each tax period. When the input tax is greater than the output tax on a VAT return, the Taxable Person can request a VAT refund after submission of the VAT return.

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