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VAT Consultancy Services In Dubai, UAE
The introduction of VAT (Value Added Tax) in the UAE has brought big changes to the country’s tax system. Every business needs to add VAT, which is an indirect tax, to the cost of goods and services they sell. At Arabian Wingz, we focus on helping businesses, startups, and companies of all sizes in Dubai with VAT rules and regulations. We provide a wide range of VAT consultancy services in Dubai, including advice on VAT, VAT registration, VAT de-registration, VAT return filing, and VAT refunds.
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Value Added Tax: What is It?
VAT is a type of tax that is applied to the price of most goods and services in the UAE, and this tax is applied at every stage of production or sale. In the Emirates, this tax was introduced by the government to increase revenue generation and support public services, while maintaining a fair tax system that doesn’t unfairly affect small businesses or entrepreneurs.
In the Emirates, businesses must follow VAT rules, including VAT registration in UAE, if their sales reach the eligibility limit. If you are not completely aware of VAT and its registration process, you can take assistance from a professional VAT consultant who can help you register for it correctly, understand all the rules related to this tax, and maintain your compliance to avoid penalties.
VAT Rates in Dubai
Not only is understanding VAT registration in UAE important, but you must have a clear idea about the types of VAT rates applied on products and services in the country. Here are the three main types of VAT rates applied in the country:
- Standard Rate (5%)- This VAT rate is applied on most of the goods and services in the Emirates, including electronics, restaurant bills, consultancy services, etc.
- Zero-Rated (0%)- Some items in the UAE are subject to a 0% VAT rate. The healthcare and education services, basic food items, and exports made to countries outside the Gulf are part of this.
- Exempted- The third category is of fully exempted goods and services that are not charged with VAT at all. Some of them are residential property rentals, local passenger transport, life insurance, and other financial services.
Understanding VAT Compliance Dubai, UAE
In the Emirates, VAT (Value Added Tax) is imposed on businesses that have an annual taxable income over AED 375,000. According to the FTA’s regulations, businesses with eligible taxable income must do VAT registration in Dubai, UAE. The authority has established some compliance regulations that must be followed by VAT-registered businesses.
Some of these rules are keeping accurate financial records, charging VAT on their products and services, and filing VAT returns on time. If any business doesn’t follow these regulations, it is punished with severe legal issues and hefty fines. With a trusted provider of VAT consultancy services in Dubai, UAE, you can remain assured every time about your business compliance with FTA’s VAT regulations.
Documents Required for VAT Registration in UAE
For completing VAT registration in Dubai, UAE, you need to submit important documents to the FTA that verify details about your business. Here is a list of the documents that are usually requested to be submitted:
- A copy of the trade license issued by a UAE authority.
- Copy of passport and Emirates ID of the business owner or partners.
- MOA and AOA provide information about a business’s legal structure and ownership.
- The company’s contact details, including its address, email, and phone number.
- For bank account details, mostly, a copy of a bank statement or a confirmation letter is required.
- Financial records or invoices as proof to prove your business’s eligibility for VAT registration in UAE.
With the assistance of expert VAT consultants in Dubai, you can easily prepare and submit these documents for smooth VAT registration.
VAT Penalties
The FTA has set clear tax rules for businesses, including VAT registration in UAE, timely filing of VAT returns, and others. If a business does not maintain compliance with these rules, it will face penalties. Any non-compliance, from not registering and maintaining improper records to late VAT returns filing and inaccurate VAT calculation, can lead to great financial and reputational loss for businesses.
For example, if a business fails to register for VAT within the given timeline, it can receive a penalty of AED 10,000. To avoid any small mistakes, it is advisable to work with experienced VAT consultants in Dubai who can provide you with the right guidance and help you maintain compliance with the FTA tax rules.
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How VAT Consultants in Dubai Can Assist Businesses with VAT Advisory & Compliance Services?
VAT consultants in Dubai assist businesses in managing their VAT compliance, as they guide them through the complete VAT process, from registration to filing returns. Not only do they advise on VAT rules, but they also analyze their clients’ business operations to make compliance easier and less stressful for them. Here is how a professional VAT consultant can assist you with VAT advisory and compliance services in the UAE:
- Custom VAT Planning- A professional VAT consultant, like Arabian Wingz, creates a clear and customized VAT plan for each of its clients. The demands and requirements for businesses from a specific industry are different, and a professional VAT advisor makes every step of the VAT process easier and less confusing for businesses with a customized plan.
- Support During VAT Audits- If your business faces a VAT audit, you don’t need to worry, as a provider of VAT consultancy services in Dubai will help you avoid any mistakes. From preparing the required document to legally representing you while the audit is ongoing, they can help you avoid legal issues and hefty penalties.
- Advice on VAT Impact for New Business Models- Not just VAT registration in UAE, an expert VAT consultant and advisor will advise you on how VAT can impact if you launch a new product or service, or enter a partnership model. .
- Help with VAT Refunds- Do you know you can claim a refund of the VAT you’ve paid for your business? VAT consultants in Dubai can help you navigate the entire refund process, from correct documentation to quick approvals.
Our VAT Consultancy Services in Dubai, UAE
Our VAT consultancy services in Dubai, UAE, help companies manage their VAT-related activities. Our experienced consultants provide guidance on VAT registration, deregistration, returns, and more. We work closely with each business to understand its needs and create personalized solutions to guarantee smooth VAT processes and full compliance with the UAE’s VAT laws. Here is a comprehensive range of VAT services that Arabian Wingz offers:
VAT Registration Services
The VAT law establishes specific rules about when businesses need to register for VAT. There are both mandatory and optional registration criteria. The VAT registration process requires submitting several documents to the FTA. If the papers are incorrect or not completed, the registration approval could be delayed. Our team makes sure everything is checked and correct before we submit the registration to provide a quick and easy process.
VAT Deregistration Services
VAT Deregistration is the process by which a business or individual cancels their VAT registration and Tax Registration Number (TRN). The Federal Tax Authority (FTA) manages the online process for VAT deregistration, and we can help guide you through it. Only businesses or individuals already registered with the FTA can apply for VAT deregistration, and failing to do this on time can lead to penalties. The team of Arabian Wingz can assist with the procedure to make sure that every aspect is executed appropriately.
VAT Consultation/Advisory
This is a very crucial element of our service. By understanding how a business operates daily, the type and volume of supplies it makes, its VAT inputs and outputs, and other factors like exemptions and tax rates, we can better evaluate how VAT applies to their business. As your trusted VAT consultant, we then suggest the changes needed in their accounting systems and business processes to stay compliant with the regulations prescribed by the authorities in the UAE.
VAT Audit Support
At Arabian Wingz, we understand that a business could face difficulties during the VAT audit timeline. One should be ready for audits by the FTA with our comprehensive VAT audit services in Dubai. We help review and prepare VAT records, represent you during FTA audits, and assist in resolving any differences to make sure everything is compliant. Thus, we are your trusted partner when it comes to VAT auditing solutions in the UAE.
VAT Returns
Businesses must file VAT returns every month or quarter, depending on their size. There are specific deadlines, and failing to meet them can lead to penalties. The returns include details about taxable supplies, exempt supplies, reverse charge transactions, imports, and other relevant taxes. It’s important to have a reliable accounting approach to make sure the figures are accurate and filed on time. The Arabian Wingz team can assist with filing VAT returns and also help with settling any tax amounts owed.
VAT Refund Services
If the VAT you have paid on purchases (input VAT) is greater than the VAT you have collected from your customers (output VAT), you may be eligible to get a VAT refund from the FTA. If your business is paying more VAT than it collects, you can apply for a VAT refund in Dubai. This process can be a bit complex if you do not have a sufficient understanding of this. In case you face any hindrances, our professionals can help you navigate the VAT refund process with ease.
Benefits of VAT Consultancy Services in Dubai, UAE
Since the introduction of VAT in the UAE in 2018, it has become mandatory for businesses with eligible taxable income to follow the FTA’s strict rules. Arabian Wingz, the professional provider of VAT consultancy services in Dubai, UAE, helps businesses operating in the Emirates understand, follow, and maintain compliance with the standard VAT rules.
Avoid Penalties & Mistakes
By working together with a professional VAT consultant, like Arabian Wingz, you can make sure all your financial records are accurately recorded and VAT returns are submitted on time. Our VAT experts double-check all records before filing VAT returns to make sure our clients remain compliant with standard FTA rules.
Save Time & Reduce Stress
Understanding VAT regulations and handling its process can be confusing and time-consuming for businesses without support. With a trusted provider of VAT services in Dubai, UAE, you can remain free from this stress, as their team handles every aspect of your business’s VAT process, from filling out documents to dealing with the FTA.
Help During FTA Audits
Having a VAT consultant can be very helpful for any business operating in the UAE, especially if it is audited by the FTA. They can help you understand the process and how to work with FTA to keep your business safe from legal issues. Also, VAT experts keep themselves updated and can inform and help you adjust to the changing rules.
Keep Your Records Clean & Organized
Accurate and organized record maintenance is one of the most important regulations for businesses to stay compliant with FTA’s VAT regulations. Arabian Wingz’ VAT consultancy services in Dubai, UAE, help you with good record-keeping. Also, they offer required help in case you are eligible to get VAT money back.
Why Choose Our VAT Services in Dubai?
Choosing us as your reliable VAT consultant in Dubai comes with a range of advantages. These include:
- Expertise and Experience: Our team is trusted by businesses across a wide range of industries, providing dependable VAT solutions that meet the special needs of each industry. With years of industry knowledge, we make sure that your VAT requirements are managed by true experts.
- Tailored Approach: We offer customized services designed to address the specific requirements of your business and guarantee that every element of your VAT process is optimized for the highest efficiency and compliance. We take our time to understand your objectives and challenges.
- Compliance Focused: As a reputed VAT consultant, we are committed to making sure that your business sticks to all UAE VAT laws, and help you avoid fines and remain up-to-date with ever-changing tax norms. Our process guarantees your company stays fully compliant at all times.
- Comprehensive Support: From VAT registration to audits and ongoing compliance checks, we provide a full range of solutions to help your enterprise throughout its VAT journey. Our experts are with you every step of the way and make sure that you never encounter VAT challenges alone.
In addition to VAT, we also provide Corporate Tax Services UAE to give businesses a complete tax compliance package under the latest UAE tax framework.
About Arabian Wingz - Leading Provider of VAT Consultancy Services in Dubai
Arabian Wingz is one of the top providers of VAT services in the UAE, which makes VAT compliance simpler for businesses of all sizes. Our team of expert tax advisors makes sure that your VAT responsibilities are handled correctly and efficiently. Even if you need VAT services in Dubai or across the UAE, we are your go-to provider for all VAT requirements, from registration and filing returns to delivering advice and conducting audits.
To further support businesses with their overall tax responsibilities, we also provide comprehensive Corporate tax services UAE and guarantee a simplified compliance and guidance across both VAT and corporate tax obligations.
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Arabian Wingz VAT Process
Arabian Wingz, the trusted provider of VAT consultancy services in Dubai, UAE, offers the required help to businesses in handling the challenging VAT process. Here are the steps followed by us to guarantee our clients’ compliance:
- Initial Consultation- Our VAT experts begin by understanding your business's current VAT handling process.
- VAT Registration- Then, we confirm the business’s eligibility for VAT registration. Once the eligibility is confirmed, we prepare documents and submit them to the FTA.
- Ongoing Compliance & Filing- Our team accurately manages the business’s VAT returns filings and makes sure everything is done within the timeline.
- Bookkeeping & Record Management- We help our clients maintain accurate financial records, prepare them for FTA audits, and help them understand the complex VAT calculations.
- FTA Support & Advisory- If any issue or query is raised by the FTA, we legally represent our clients and guide them through every step of the audit.
How Our VAT Services in Dubai Can Help Your UAE Business Grow?
VAT does not add extra costs to businesses. Instead, businesses are just the middleman between customers and the government. Careful planning and efficient management of VAT will help increase revenue for your business. VAT services are helpful because:
- They prevent mistakes when submitting your tax return.
- They help you claim back the VAT you’ve paid on business purchases.
- They set up rules to avoid penalties and fines.
- They make sure your business keeps proper records for five years, as required by law.
- They help you prepare for tax audits and avoid major issues.
- They help you stay updated on any changes to VAT laws and how they affect your accounting.
- They guide you on how to prepare correct sales invoices.
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FAQ's
What is VAT in Dubai?
VAT stands for Value Added Tax. It is a kind of consumption tax that is applied at a rate of 5% on most services and goods in the United Arab Emirates. This tax is eventually paid by the final customer, but it is collected by companies at each phase of the supply chain. Companies then report and make the payment of this tax to the Federal Tax Authority.
Who needs to register for VAT in Dubai?
Companies need to register for VAT if their entire value of taxable supplies and imports over the past 12 months, or the next 30 days, exceeds the compulsory registration threshold of AED 375,000. Companies can also select to register voluntarily if their taxable supplies and imports are over AED 187,5000 but do not exceed the compulsory threshold.
How can a business register for VAT in Dubai?
The procedure for company registration in UAE for VAT is completed online through the Federal Tax Authority website. Here are the typical steps –
- Make an EmaraTax account; it is the official online outlet for all tax-related services in the country.
- You will have to fill out the registration form with thorough information about your business.
- You have to upload all the necessary documents, such as a legal business license, passport copy, an Emirates ID, bank account information, and a turnover declaration.
What are the VAT filing requirements in Dubai?
Companies registered for VAT should file a VAT return for each tax duration. The tax duration can be quarterly or monthly, based on the turnover of the business.
- Companies with an annual turnover exceeding AED 150 million need to file monthly. Those below this threshold usually file quarterly.
- VAT returns should be presented within 28 days of the end of the tax period.
- The return is filed electronically through the EmaraTax outlet.
Which goods and services are exempt from VAT in Dubai?
It is vital to comprehend the difference between zero-rated and exempt goods and services –
- Zero-rated (0% VAT) – Although the tax rate is 0%, these supplies are still taxable. Any input VAT paid by businesses on associated business expenses is still refundable. The first sale of residential real estate, international travel, exports outside the GCC, and specific medical and educational services are a few examples.
- Exempt (no VAT) – These are completely exempt from VAT. Companies are unable to recoup input VAT on associated costs. Bare land, residential property rentals (following the initial sale), and certain financial services are a few examples.
What is the penalty for late VAT registration or filing in Dubai?
The FTA applies remarkable fines for non-compliance.
- Failure to register for VAT within the necessary deadline can lead to a fine of AED 10,000.
- A late VAT filing submission can cause a fine of AED 1,000 for the first time and AED 2,000 for repeat cases.
- Initiating with a 2% fine on the outstanding tax amount right after the deadline, late payment penalties are progressive. Over time, this could rise to as much as 300% of the outstanding tax balance.
Can businesses claim VAT refunds in Dubai?
If a company’s input tax exceeds its output tax for a given tax period, it is eligible to receive a VAT refund. This generates a VAT credit that can be refunded from the FTA or carried forward to the following tax period. Additionally, there are special VAT refund programs for tourists, foreign companies, and UAE citizens constructing new residences.
How does VAT impact free zone companies in Dubai?
Whether or not the free zone is a Designated Zone determines how VAT affects business operating there –
- Designated Zones – For VAT purposes, designated zones are regarded as being outside of the UAE. In general, VAT does not apply to the transfer of goods between companies located in the same designated zone.
- Non-Designated Zones – Companies operating in these unrestricted areas receive the same treatment as companies operating on the mainland. If they meet the threshold, they have to charge the standard 5% VAT on their taxable supplies and register for VAT.
How can Arabian Wingz help businesses with VAT in Dubai?
Arabian Wingz, a respectable business consultant in Dubai, provides extensive business advisory services to assist businesses in navigating the intricacies of VAT. Among their offerings are –
- VAT Registration – Helping companies complete the registration procedure and making sure all paperwork is properly prepared and filed.
- Filing VAT Returns – To avoid fines, accurately and promptly prepare and file VAT returns.
- VAT Advisory – Offering knowledgeable counsel on the implications of VAT for particular business operations, assisting with tax preparation, and guaranteeing adherence to all FTA rules.
- Record-keeping – Helping companies set up appropriate accounting systems to keep the records required for VAT compliance.
