VALUE ADDED TAX (VAT)

VALUE ADDED TAX (VAT)

Al Araidi Auditing

VALUE ADDED TAX (VAT)

VAT is basically an indirect tax but it is also referred to as a type of consumption tax. It is applicable to supply of various kinds of goods and services. It is levied by businesses that are registered for VAT, on supplies of goods/services to their customers in the normal course of their business operations.

VAT is charged by businesses at each phase in the supply chain. In most cases the ultimate consumers bear the cost of VAT while Businesses collect VAT on behalf of the tax authorities.A financial statement audit is an independent appraisal of the financial statements prepared by the organization. The cardinal objective of a financial statement audit is to provide an;

All the Member States of the Gulf Cooperation Council (GCC) have signed the Value Added Tax (VAT) Framework Treaty. This means that all the six member states of the GCC including the UAE have agreed to introduce the formal VAT system in their respective countries.

The VAT Framework Treaty will act as the principle guideline for VAT legislation in the UAE and other member states. The treaty will form the basis of the rules and regulations regarding VAT in respective member states of the GCC.

It has been decided that value added tax in UAE will effectively be applied to businesses operating within the UAE on January 1, 2018. Other GCC countries may also implement VAT at the same time as the UAE or by January 1, 2019 at the latest.

New compliance requirements for VAT in UAE require that businesses be compliant and operate within these new guidelines. In order to help eliminate confusion Nadeem and Umendra can help you and your business by insuring total compliance with these new rules and work to educate staff in your business who might be affected by these new changes.

We have several approaches to aid your business in these changes by offering training and awareness programs that can be implemented to meet the needs of your business and specifically the industry you are working in. To schedule immediate training for VAT implementation in UAE please complete the following form for a no cost consultation as to how we can help you with managing and following Value Added Tax requirements.

The businesses charge VAT to their customers by adding VAT to the value of the goods and services that are supplied to the customers. These types of businesses are also entitled to reclaim VAT which they have paid to their suppliers on purchase of goods or services in the normal course of business. In case of Imports, VAT is levied at the point when the goods first enter into the country in which it will ultimately be consumed.

New compliance requirements for VAT in UAE require that businesses be compliant and operate within these new guidelines. In order to help eliminate confusion Nadeem and Umendra can help you and your business by insuring total compliance with these new rules and work to educate staff in your business who might be affected by these new changes.

We have several approaches to aid your business in these changes by offering training and awareness programs that can be implemented to meet the needs of your business and specifically the industry you are working in. To schedule immediate training for VAT implementation in UAE please complete the following form for a no cost consultation as to how we can help you with managing and following Value Added Tax requirements.

In general, the person who issues a tax invoice containing VAT will be the one liable to pay VAT to the tax authorities. In circumstances, where reverse charge mechanism is applicable and goods/services are being supplied in a GCC member state and supplier is not the resident of the particular member state, then the taxable customer will be the one responsible for paying VAT.

OUR APPROACH TO VAT ADVISORY

The U.A.E Government has implemented Value Added Tax with effect from January 01, 2018. All the businesses may not be geared up to meet the requirements of the VAT Law. It is imperative that the businesses get expert services to enable themselves to be VAT compliant. Our pre-implementation service includes the following:

a) VAT Registration

Provide assistance with registration of business entities individually or as a group

b) Business Impact Analysis

  • This includes assessing the VAT readiness of the entity and implications of VAT on business transactions.
  • Identifying gaps in the existing system
  • Mapping of transactions based on the VAT Law
  • Studying the impact on working capital

c) VAT Implementation & Transitional Support

  • Structuring transaction flows and helping to create operating model for the entity
  • Assist in aligning business practices with VAT regulations
  • Hand holding through initial phase
  • Selection of accounting software

a) Transaction Advisory

  • Provide guidance for industry specific transactions.
  • Provide guidance for treatment of international transactions & its VAT implication.
  • Recommending best business practices prevailing in the industry.
  • Advising and developing transaction flows.

b) VAT Compliance

  • VAT Health check-up.
  • Submission of VAT returns.
  • Guidance in preparation of books of accounts and other accounting records as per VAT Laws.

c) VAT Training

  • Organize and provide training to the finance, sales and management of different entities catering to specific industries. Our training package covers the following key areas:
  • Applicability of VAT for the business (Relevant provisions pertaining to the business are discussed)
    Recording of VAT related transactions.
  • Accounting for reverse charges
    Preparation & submission of return.
  • Maintenance of accounting documents & other supporting documents

d) VAT Accounting

VAT system is transaction based taxation system which requires accurate recording of revenue, costs, output VAT, input VAT etc. A good accounting system with proper controls is the need of the hour. Our Team of professional accountants will help you in establishing the controls and maintain accurate books of accounts in compliance with the VAT Laws.

ALWAYS CONNECTED. ALWAYS IN TOUCH.

Al-Araidi Auditing

Address:
Office 605, Block A, Al Shoala Building, Al-Maktoum Street, Deira, P.O.Box 430310, Dubai, United Arab Emirates.

Phone: +971 56 6266243

Email:  

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VAT in UAE | TAX in UAE | Dubai Tax
VAT in UAE | TAX in UAE | Dubai Tax
VAT in UAE | TAX in UAE | Dubai Tax
VAT in UAE | TAX in UAE | Dubai Tax
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