Consulting services can provide valuable insights, strategic guidance, pecialized
1901 Shiloh, Hawaii 81063
Welcome to our RUI Consultation Company
Consulting services can provide valuable insights, strategic guidance, pecialized
1901 Shiloh, Hawaii 81063
Welcome to our RUI Consultation Company
Want stress-free VAT in the UAE? Our Value Added Tax Service in Dubai is your solution. We handle the tax details, ensuring your business meets requirements hassle-free. You focus on success, we handle the rest.
We have 2564+ Global Active Clients
YEAR OF EXPERIENCE
Value Added Tax (VAT) in the UAE was introduced on January 1, 2018, as part of the government’s initiative to diversify its economy and reduce reliance on oil revenues. The standard VAT rate is set at 5%, making it one of the lowest rates globally. This tax applies to most goods and services, aiming to generate revenue for the country’s development projects and public services. Businesses with an annual turnover exceeding AED 375,000 must register for VAT, while those with revenues between AED 187,500 and AED 375,000 have the option to register voluntarily. Once registered, companies are responsible for charging VAT on their sales and collecting it from customers. They must also file regular VAT returns to report their taxable sales and input tax (the VAT paid on purchases). VAT compliance is critical, as the Federal Tax Authority (FTA) in the UAE enforces strict regulations. Non-compliance can result in penalties, fines, and audits. Businesses can reclaim VAT paid on their purchases, which helps mitigate the tax burden. This input tax recovery system is a key feature of VAT, ensuring that only the final consumer bears the tax cost. Certain goods and services are exempt from VAT or subject to a zero rate, including healthcare, education, and certain financial services. The introduction of VAT has had a significant impact on the UAE’s economy, promoting transparency and accountability in business practices. Overall, VAT in the UAE represents a shift towards a more sustainable revenue model, aligning with global tax practices and enhancing the country’s economic resilience.
Voluntary registration for VAT is an option available to businesses when their value of taxable goods and services exceeds AED 187,500 over the previous 12 months. By opting for voluntary registration, businesses gain the ability to reclaim input tax—the VAT they have paid on their purchases—thereby improving cash flow and reducing overall costs.
Mandatory registration for VAT is required for businesses whose value of taxable goods and services exceeds AED 375,000 during the previous 12 months. Once registered, the business must charge output tax—the VAT collected from customers on sales—on its taxable supplies. Failing to comply with mandatory registration can lead to penalties and other legal consequences.
In the UAE, designated free zones have specific VAT regulations that businesses must follow. Certain transactions between companies within these zones may be exempt from VAT, but services utilized within the free zones are subject to VAT according to UAE legislation. The VAT registration threshold is AED 375,000, with a voluntary threshold of AED 187,500; non-resident companies must register without a minimum threshold. VAT grouping is allowed under certain criteria.
Goods and services that are subject to a 0% VAT rate, meaning that while no VAT is charged on the sale of these items, businesses can recover the input tax paid on related purchases and expenses.
Goods and services that are subject to a 0% VAT rate, meaning that while no VAT is charged on the sale of these items, businesses can recover the input tax paid on related purchases and expenses.
VAT services provide businesses with expert advice on VAT regulations, helping them navigate complex compliance requirements and avoid costly mistakes.
Professional VAT services ensure that businesses comply with local VAT laws, reducing the risk of penalties, fines, and audits from tax authorities.
VAT services assist businesses in identifying and reclaiming eligible input tax credits, improving cash flow, and reducing overall tax liability.
VAT experts help businesses streamline their VAT processes, making it easier to track and report VAT transactions accurately, which enhances overall efficiency.
Help businesses minimize exposure to potential tax disputes and legal issues.
VAT regulations can change frequently; VAT services keep businesses informed about the latest updates and amendments, ensuring ongoing compliance.
VAT services can tailor their approach to fit the specific needs of a business, providing solutions that align with their operational model and industry requirements.
By outsourcing VAT services, businesses can focus on their core operations, knowing that their tax compliance and reporting are in expert hands.
Support for account creation, guidance from initial registration to ongoing maintenance.
Completion of documentation solution for your Value Added Tax (VAT) registration, assessment and preparation of all necessary documents.
Assistance in acquiring and certifying TRN, ensuring adherence to legal requirements.
Assistance for businesses with the registration process with the tax authorities, enabling them to collect and remit Value Added Tax (VAT) on taxable goods and services.
Submission of periodic VAT returns to the tax authorities, including the VAT collected on sales and the VAT paid on purchases during a specific reporting period.
VAT refund service entails businesses claiming back excess VAT paid on purchases that exceed the VAT collected on sales.
Support during VAT audits conducted by tax authorities, ensuring that all VAT transactions are accurately documented and compliant with VAT laws, navigating the audit process smoothly.
Maintaining a proper record and track of all VAT-related transactions in business accounting records. Implementation of robust accounting practices with accurate reporting and compliance with VAT regulations.
Cancellation of VAT registration with tax authorities when necessary, such as in cases of business closure or when they no longer meet the required turnover thresholds.
Apply for VAT registration through the Federal Tax Authority (FTA) portal and obtain a Tax Registration Number (TRN).
Businesses must issue tax invoices for taxable supplies and retain proper records, including sales and purchase invoices, for a minimum of five years.
Prepare VAT returns, summarizing the output tax collected and input tax paid. Returns can be submitted quarterly or monthly, depending on the business's size and revenue.
Submit VAT returns through the FTA portal within the specified deadlines (usually 28 days after the end of the tax period).
Pay any VAT due as indicated in the submitted return. The payment must be made by the submission deadline.
If the input tax exceeds the output tax, businesses can claim refunds through the FTA portal within 1 to 2 months.
The FTA may conduct compliance checks or audits on businesses to ensure adherence to VAT laws.
Regularly review VAT compliance procedures and update them based on changes in regulations or business operations.
VAT Registration
Trade License
Passport Copies of owners/partners
Emirates ID of owners/partners
Business Address Proof (utility bills or lease)
Bank Account Details (statement or letter from bank)
Recent Financial Statements or Estimated Forecast
Import/Export Records (if applicable)
VAT Compliance
Sales Invoices (including VAT details)
Purchase Invoices (input VAT documentation)
Completed VAT Returns submitted to the FTA
Books of Accounts (ledgers and journals)
Relevant Bank Statements
Documents for Refund Claims (if applicable)
Contracts and Agreements related to VAT transactions
