Expert VAT Services in Dubai for Maximum Compliance and Savings, Trusted VAT Consultants in UAE
The UAE has new tax laws that have made it mandatory for all companies to require VAT Services in UAE. Every business must register themselves to a governing jurisdiction to ensure they file their taxes monthly and quarterly.
What is VAT Services in Dubai?
VAT stands for value-added tax. It is among the most basic types of taxes applied in most countries. The government introduced the VAT tax in UAE on January 1st 2018. It is an indirect tax imposed on the distribution of goods and services. VAT, however, has a significant impact on the operation of any business. It has become more challenging for taxpayers to keep up with the volume and complications of the tax transactions hence the need for ICONS Business Setup VAT services.
Our professional accountants will handle the filing process and ensure your company complies with the government’s stipulations. VAT is imposed across the globe, and it is required that all the people enrolled for VAT on account of the goods and services supplied to all their clients in ordinary business procedures.
The UAE government has introduced the new Corporate tax (CT) via the Ministry of Finance on the net profits of your business. The tax will apply to your business on 1 July 2023 or 1 January 2024 based on the financial year followed by your company. The New corporate tax will be applied across the Emirates. Our VAT consultants in UAE will ensure you meet all the government requirements to avoid any trouble with the UAE government.
ICONS Business Setup best VAT consultants in Dubai
Our tax expert will guide you through the entire Dubai VAT rate process. We take into consideration all your obligatory regulations and documentation of the tax system to grow your business. We offer a range VAT Services in Dubai of services, includes:
- Carefully examine and balance your balance sheets
- Introduction to the tax laws in the UAE
- Interpret and classify the tax groups
- Provide tax agents in the United Arab Emirates
- Quick and accurate tax filing process
- Update ourselves with the FTA legislation and rules
VAT Registration Process
The VAT registration process is very straightforward. ICONS has VAT consultants in UAE who provide online VAT registration services for your company.
Here is the registration process:
- Go to the VAT registration portal on www.tax.gov.ae and sign up.
- Once you create your account, log in and complete the form accurately.
- Attach all the required documents
- Finally, submit your application
Once you submit your application, it will be reviewed by FTA. Once approved, you will be issued with a TRN registration number. You will later be issued a VAT certificate by the Ministry of Finance. The Certificate confirms that your company has been registered under the VAT UAE law.
The VAT certificate will include the date of registration, VAT registration number, date of issue, your business address, first VAT return due date, and the beginning and the end of the tax period.
Documents for VAT Registration
Here are the documents required for VAT Services in Dubai, VAT registration in the United Arab Emirates:
- Copy of the company’s trade license
- Application letter with a signature of the authorized signatory
- Identification of the authorized party, including Emirates ID or a passport
- Certificate of Incorporation of the company
- Article of association certificate
- Power of Attorney certificate
- Last 12 month’s business turnover
- Expected turnover in the following 30 days
- Bank account details
- Supporting documents for customs registration
- One year estimated imports from all GCC countries
- One year estimated exports for all GCC countries
How to Register for VAT Services in Dubai?
of a business plan and strategy is known as company planning development.
VAT Accounting
Companies must keep accurate records to submit their VAT returns for the following transactions:
- Local Sales falling under normal VAT procedure,
- Taxable Export Sales (GCC Sales),
- The VAT Exempted sales,
- Local Purchases and Import Purchases.
- Zero-rated Export Sales.
What is VAT Liability & How is it Calculated?
The difference between the input tax (VAT incurred on purchases) recovered for the same tax period and the output tax due (VAT paid on deliveries of goods and services) for a given tax period is known as VAT liability.
- The total amount of your company’s purchases and sales during the relevant return period
- The quantity of sales-related VAT you pay
- The total amount of VAT Services in Dubai that you may claim on your purchases
How to File VAT Return in UAE?
- Information on the taxable individual
- The time frame for filing a VAT return
- VAT on all other inputs and costs
- Sales tax and all other output taxes
- Due net VAT
- Increased Reporting Obligations
- Declaration and Authorized Signatory
What are the Benefits of Filing a VAT Return?
We are complying with VAT benefits for the company.
- Effective cooperation in business. Actually, a lot of large companies are frequently hesitant to conduct business with corporations that are not registered for VAT.
- A company’s image increases once it registers under VAT regulation.
- VAT Services in Dubai is the easiest indirect tax to handle when compared to other taxes.
When are Businesses Required to File VAT Returns?
- quarterly for companies with less than AED 150 million in yearly revenue
- Monthly for companies with at least AED 150 million in yearly revenue
- For a particular kind of business, the FTA may, at its discretion, designate a distinct tax period.
VAT Assessment
- Businesses are required to impose taxes on their clients by input and output taxes.
- The VAT collected when products are sold or services are rendered to clients is known as output tax.
- The VAT paid while buying raw materials for products or services is known as input tax.
- VAT = Output Tax – Input Tax
VAT delay in UAE
VAT returns need to be filed before the due date; failure to do so will result in a $1,000 fine the first time around. Should there be more than one infraction during 24 months, the punishment will increase to AED 2,000 for each infraction. If a VAT Return is not filed by the deadline, the FTA may share a tax assessment with an estimate of the amount owing in taxes. Any applicable taxes, late payment penalties, and fines for not filing a tax return must be paid by the Taxable Person.
Set Penalty
- First-Time Offender: 1,000 AED
- Recurrent Violation (within 24 months): AED 2,000 for each infraction
Extra Penalties
- 2% of overdue taxes are due the day following the deadline for payments.
- Penalty of 4% per month: Charged on the unpaid amount, beginning the month following the deadline.
- Penalty: 1% each day, accruing from the day after the deadline and reaching a maximum of 300% of the outstanding tax.
Avoiding VAT Late Payment Penalties
Keep Accurate Records
Make sure your books are kept up to date
Remain Up to Date
Stay abreast of any modifications to VAT legislation and FTA specifications.
On-time Submissions
Make sure that VAT returns are filed and payments are made on schedule.
Seek Professional Advice
For advice, speak with tax specialists or VAT consultants.
Employ Accounting Software
To help with regulation, either invest in VAT accounting software or engage an accountant.
How can VAT Services in Dubai help you grow your business in the UAE?
- VAT does not increase costs or difficulties for the company. Generally speaking, all businesses represent the government as a mediator. Only the effect is shown in the financial flow.
- Help prevent errors during tax filing.
- To file an application for the input tax that the VAT law has paid.
- Make regulations to avoid fines and penalties.
- Maintain the current books of account for five years, as required by law.
- conducts the tax audit in order to shield the company from significant errors.
- Learn about the most recent modifications to the VAT law and how they affect accounting by being informed and trained.
- Learn about the most recent modifications to the VAT law and how they affect accounting by being informed and trained.
Icons set VAT services
Even though completely ignorant, this is an error when it comes to VAT Services in Dubai. Businesses that violate the VAT rules and regulations face severe penalties that might harm both their brand in the market and their personal reputation. Along with providing outstanding VAT services in the UAE, Icons Setup also offers extremely reasonable fees for Tax Consultation, Execution, and Refund Services. Icons Setup is widely recognized as a top platform for handling VAT Services in Dubai for both new and established companies in the United Arab Emirates.
Frequently Asked Questions (FAQs)
The UAE government’s guideline states that every business or company must register for VAT Services in Dubai with an annual revenue of more than AED 375,000. Registering becomes voluntary if your company has a revenue below the state threshold. While registering for VAT in UAE might be optional, you should register your business anyway.
Some businesses are exempt from VAT registration. They include:
- Bare land
- Certain financial services
- Residential properties
- Local passenger transport
VAT registration offers long-term benefits, including:
- An enhanced business profile
- Enhanced business opportunities for your business
- Avoid government penalties
- Allow you to claim refunds
- ICONS Business Setup offers versatile VAT Services in Dubai to deal with financial and legal issues. We also offer affordable, quick and easy VAT accounting and auditing services. Our tax experts will provide you with adequate knowledge of tax classification. ICONS Business Setup is dedicated to ensuring your business achieves its maximum potential and increases your financial growth.