What is VAT?

The UAE Government implemented VAT in the Country from 1st January 2018 at a Standard Rate of 5%. Value added Tax is a tax on consumption levied at each stage of the Supply Chain and ultimately borne by the end Consumer. The Registered Businesses will Act as a Tax collector on behalf of the Government & will Account the Tax. KGRN Chartered Accountants will assist the Registered Business Entities in overcoming the hurdles in Complying the VAT Laws & Regulations. Our Team of Experts will enable you to concentrate on your core Business Activities by completely taking the burden of Complying VAT Regulations from you  and we provide extends VAT Services in UAE.

Who Shall Register with VAT?

If your Taxable Supplies & Imports exceeds AED 375000, then you shall mandatorily obtain VAT Registration. Whereas the Business Entities may also opt to obtain Registration Voluntarily if their Supplies & imports are below AED 375000 but exceeds AED 187500. In order to facilitate the Start-up Businesses with no turnover to obtain Registration, the VAT Laws provide that a business whose Annual Expenses exceeds AED 187500, may also obtain Registration Voluntarily.

What are Zero Rated Supplies?

The Following Supplies are Taxable at 0% and are stated as Zero Rated Supplies:

  • Exports of Goods & Services
  • International Transport ( Both passengers & Goods)
  • Supplies of Certain Means of Transport such as Trains, Trams, Vessels, Airplanes
  • First Sale of Residential Properties (within 3 Years from Construction)
  • Investment in Precious Metals like Gold & Silver (99% purity)
  • Supply of Specified Healthcare Services and Related Goods & Services
  • Supply of Specified education Services and Related Goods & Services

What are Exempt Supplies?

Exempt Supplies are not Taxable and the Person Making such Supplies Shall not recover the  VAT on expenses incurred in making those Exempt Supplies. The Following Supplies are Exempted from VAT:

  • Supply of Financial services including Life Insurance and Reinsurance of Life Insurance as well as Financial services that are not conducted for an explicit fee, Discount, Commission, Rebate or any other similar Consideration.
  • Supply of Residential Buildings other than the Residential Buildings that are Zero- Rated.
  • Bare land for supply
  • Local Passenger transport Services.

 

The Best Solution:

All Businesses may not be able to comply with the Complicated Tax Laws on their own due to Lack of Experts. It is also not possible for some businesses to deploy separate Staffs for VAT Compliances. Our Chartered Accountants will relieve you from these obstacles and provide Excellent VAT Related Services in UAE. At KGRN, we understand the business complexities running from accounting, tax assessment, and VAT services in UAE. We give the best VAT consultancy benefits in Dubai.