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VAT Implementation

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Professional VAT Implementation In UAE

The UAE government has taken steps to ensure all taxable businesses are VAT compliant as per tax procedure law. VAT was introduced as a new source of income that is collected by the end consumers on behalf of the regulatory authorities. It ultimately benefits society and the citizens of the Emirates. Nevertheless, all this is possible if the tax person is capable enough to put in place an appropriate VAT implementation in UAE. It’s a challenging task to perfectly comply with the VAT laws, but our team of tax experts in Dubai has got you covered and provides all VAT services under one roof with 100% guaranteed satisfaction.

What is Value Added Tax?

VAT refers to the value-added tax that is imposed on 1 January 2018 in the United Arab Emirates and other GCC countries. VAT is charged at each stage of the supply chain. The standard rate is 5% on most goods and services except the exempted and zero-rated supplies as per VAT laws. Let’s understand the whole process of VAT implementation in UAE:

Why Is VAT Implementation Mandatory For UAE Businesses? 

In 2018, the United Arab Emirates signed an agreement to implement VAT on each taxable entity. All individuals or businesses are responsible for VAT compliance as per FTA standards. This includes VAT registration, VAT return filing, VAT refunding, and many other VAT activities. The VAT implementation in UAE is mandatory for all eligible taxpayers to prove their records are VAT compliant. It may be seen as an additional cost for tax persons but non-compliance with the VAT laws will attract severe penalties in the future.

Milestones For VAT Implementation In UAE

The UAE VAT law requires that all business operations comply with VAT implementation. Each entity must be knowledgeable enough or may hire a team of VAT consultants in Dubai to develop a strategy for VAT implementation. Because it’s a comprehensive procedure that requires tax expertise. Let’s become familiar with the process of VAT implementation in the UAE.

Entity Applicable/ Exempt From VAT 

Our tax experts in Dubai first of all, understand your business model, the types of goods and services you offer, and the company’s quarterly & annual turnover. This information helps to assess whether a tax group or standalone entity is applicable for VAT registration or exempt from value-added tax. The foremost step for VAT compliance is VAT registration in UAE. It depends upon the revenue generated by taxable supplies and imports. If a business exceeds the threshold of AED 187,5000 then it may register voluntarily. However, if a taxable entity crosses the limit of AED 375,000 then it must apply for mandatory VAT registration. Our team also provides expert opinions and consultancy on the VAT registration process as per FTA. You can take advantage of our VAT consultants to take the first step toward VAT implementation in UAE.

Review Accounting & Bookkeeping Records

VAT compliant accounting & bookkeeping records are compulsory for VAT implementation in UAE. For developing an effective VAT implementation strategy for a company, a taxable person must keep their financial records compliant with UAE tax laws. The books of account should be VAT ready so the FTA auditors will not be able to impose VAT fines and penalties. Our team will ensure that your business records are up-to-date and accurate. We examine your invoices, credit notes and debit notes to assure correct tax collection. Our Bestax chartered accountants prepare your financial accounts in a hassle-free manner.

Tax Assessment And Calculation

The tax registered business in the United Arab Emirates has to notify authorities about VAT collection and payments. This can be done monthly or quarterly. For VAT implementation in UAE, you must assure that incoming and outgoing invoices are VAT compliant. Our tax consultants in Dubai, proficiently review all your exempt/zero-rated supplies, input & output tax, reconcile transactions and submit your VAT return filing. Our error-free tax assessment and calculation will decrease the risk of VAT non-compliance penalties by the Federal Tax Authority.

Implement Advance VAT Software

A company should determine whether its accounting software is ready to accommodate the new VAT system in UAE. We make sure your IT system has the capabilities to comply with VAT requirements in daily transactions. Our VAT consultants in Dubai will examine your current accounting system to assess its suitability for value-added tax laws. BestaxCA provides services for ERP implementation and installing VAT accounting software as per your business needs. We guarantee that the recommended IT system will be configured to the VAT regulations.

VAT Training For Employees

For VAT implementation in UAE, the business staff must have knowledge of the latest VAT laws in the country. This is the biggest milestone in implementing VAT laws for a registered company. The staff should have the skills to prepare and record tax invoices, journals, and credit notes as per FTA standards. That’s the reason we provide full guidance to employees about VAT duties and responsibilities. Do our tax experts educate each department on how to be compliant at each stage of the supply chain? These detailed training sessions will boost partners’ trust and save you from VAT sanctions.

Consequences Of Not Implementing VAT 

VAT registration and compliance are compulsory for all taxable businesses in any Emirate of the UAE. Accordingly, all companies should examine how they are currently handling VAT implementation in UAE. The taxable entity often fails to comply with VAT laws in the form of omissions, inaccuracy in information, unverified documents, not suitable VAT software, poor books of account, late submissions, and many other VAT non-compliance issues. In this situation, the Federal Tax Authority may levy hefty amounts of fines on the business. A worse situation is when the FTA conducts VAT audits and issues penalties that are a burden on taxpayers. So, it is advisable to outsource experts for VAT implementation in UAE to avoid FTA sanctions in the future.

Do You Need A Consultant For UAE VAT Implementation?

VAT implementation in UAE is a crucial and long-term procedure that is difficult for a regular business person. It requires updated knowledge of authorities and expertise in VAT compliance. Bestax Chartered Accountants in Dubai, assist companies over the years by providing exclusive VAT services. We specialize in VAT implementation and never disappoint our clients’ expectations. Our tax experts assess your invoices, logistics, and transactions as per the tax procedure law in UAE. We dedicatedly assist you in all the procedures of VAT implementation in the UAE. Contact us today & let us know how our VAT consultants can help you!

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OUR Testimonials

Our latest Testimonials

However, I was the head of the finance department yet still found it difficult to conduct a financial audit in accordance with UAE regulations. Although, due to the competence and experience of BextaxCA's qualified auditors, all my concerns have been resolved

ylie Johnson

Accounts Manager, Abu Dhabi, General Trading Company

I utilized BestaxCA's accounting and bookkeeping services for my retail business in Abu Dhabi. It was fascinating to observe how they handled the finances. They provided me with out-of-the-box accounting solutions, which were really useful

Abdul Kaleem

Finance Manager, Dubai, Manufacturing Company

As per FTA requirements, the Bestax Chartered Accountants in UAE assisted me with VAT registration and filing. I personally consult with their tax experts to ensure they have the expertise necessary to provide timely answers

Abdul Kaleem

Finance Manager, Dubai, Manufacturing Company

I was so happy with the BextaxCA's services that I decided to use them for my personal tax planning and return filing. They really know their stuff when it comes to taxes!

Dwayne Perkins

Accounts Manager, Dubai, Services Provider

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 We provide a free 30 days trial, No upfront payment! If you are not satisfied with our services, you don’t pay anything