- July 5, 2020
- Posted by: Dhivya Krishna
- Category: vat
All about VAT:
VAT- A well-known word for all businessmen and ordinaries too. Value Added Tax (indirect tax) simply knows as the VAT is a must for all the goods and services consumed except food care, health items and education. Almost more than 160 countries across the globe possess this VAT in their countries. Since there is an enormous growth of the VAT rates; many VAT consultancies have been growing in recent days. The FTA- Federal Tax Authority takes care of all the taxes and it manages all the tax-related procedures. Started any business? VAT is a significant step to begin! KGRN provides one of the best VAT consultancy services in the UAE.
VAT in UAE:
Dubai, crisply known as the heart of the business centre implied a new law in the taxation systems in the year 2018. When VAT came into existence, it made marvellous changes in Dubai’s finance system. A slight change in the tax services then happens, which later was to be a positive relief for the financial system. If you own a business, VAT is a mandatory step in the process! It means, if your company or business place grades with the VAT, then the Government recognizes you. VAT rates are levied at 5% in our country. With all the taxes collected, the UAE paved the way for helping the eminent public services. KGRN will help you clear all your doubts and process the documentation quickly.
There are hundreds of vat agents in the UAE. The tax agents in Dubai will help us know more about the tax services by guiding us through the procedure. The tax agents in the UAE have much experience, hence they can be entrust with all the documents without any doubts or fears. Check out the VAT rate slabs in the VAT consultancy services.
VAT rate slabs in UAE:
|Rate type||Rate of tax|
Who all should pay VAT in Dubai?
- Companies having an annual income of Dh 375000
- Commercial tenants
- The standard VAT rate is implied on sales of commercial properties
- Goods imported to UAE will also be charged VAT
- The provisions of Federal Decree-Law Number 8
- VAT Executive Regulation
Businessmen with an annual income of Dh 375000 or more than that should register their VAT applications within 30 days. Tax agents in Dubai will take care of all the procedures and VAT consultancy without any flaws in it.
- Providing appropriate documents for registration
- You should submit a declaration form for business plans
- Income for the last 12 months should be filed and checked
- The financial experts will calculate the imports and exports
- Build your plans in order to deal with GCC officials & customers.
The FTA audit checklist must comprise the following:
- Business Trade License or Commercial License copies
- Applicant’s passport copies
- Emirates ID of the applicants
- MOA- Memorandum of Association
- Name, address, phone number, email address of the company’s representative or the applicant’s
- Bank Details of the company including IBAN
- The income statement of the company for (the last 12 months)
- Any GCC countries list, with who the company had business with
- Distinct and details descriptions of the company’s experience
After collecting all these required documents, the tax agent will proceed with the process.
In order to avoid extra tax payments, a record book may help you with the up-to-date information. It may comprise the following:
- Sales and purchase invoice
- Debit and credit notes
- Import and export notes
- Accounting books
- Zero-rated supplies and purchase
- Goods issued for private use
After the VAT was introduced, the UAE starts to face good income deeds. Tax services are easy to follow and thus have many benefits. Instead of depending on oil and other hydrocarbons for wealth sources, VAT can be trusted in.
- Revenue generated will be constant.
- VAT is easy to manage.
- VAT minimizes avoidance.
- Through VAT’s low rates of tax, a huge amount can be collected
- Consumers have a minimal burden.
- VAT is a neutral tax
- VAT can be collected for types of business.
Tax services have few cons in spite of all the beneficial pros:
- Implementation is expensive.
- VAT sometimes becomes difficult to understand
- VAT may affect poor people’s lives
- Fake invoices may affect people. So, everyone must be wholly aware of the VAT
Are there any VAT exemptions?
The following sectors are exempt from VAT:
- Bare lands
- Local passenger transportation
- Residential property
- Financial services
0% charges for VAT for the following sectors:
- Health care services and education-related services
- International transportation
- Certain air, land and sea transportations
- Investment in grade precious metals
- New residential properties
- In Dubai, we are a multi-purpose accounting firm connected all over the world.
- KGRN is a common and trustworthy platform for all tax services and accounting.
- We are registered duly and licensed for the tax services
- Our expert and legal team will lead you throughout the process
- No hidden charges
- Thousands of happy and satisfied customers
- We promise on-time delivery
- KGRN provides instant updates about the process and guides you throughout the process
- We gladly state that the best tax agents in UAE are a part of the KGRN
1. How to calculate VAT?
If the company uses the invoice accounting system, then you have to sum up all the gross value and then multiply the total by your flat rate percentage
2. What is VAT?
VAT means Value Added Tax to be paid for the goods and services consumed
3. What is the purpose of paying VAT?
Paying VAT increases the government’s financial status. This serves as the balance between income and consumption taxes.
4. Is VAT a direct or indirect tax?
VAT is an indirect tax. It is paid by the consumers to the country’s government via the producers.
5. Can VAT be paid on a monthly basis?
Yes, VAT is mostly paid on a monthly basis. Or even it may be paid in quarters.
6. Who can claim VAT returns?
Services can claim VAT return. This is allowed only if the person or company has clear VAT receipts which include the total amount of VAT to be returned.
7. What is TRN?
The TRN is a fifteen digit number you’ll receive after applying for the VAT.
8. What is tax reconsideration form?
Tax reconsideration form is applied when the tax agent or the applicant is charged by penalties. He/she can apply the tax reconsideration form to the FTA- Federal Tax Authority.