Expert VAT Consultancy Services in the UAE

Professional, reliable, and knowledgeable VAT consultants in Dubai, offer tailored advice to optimize your tax strategy, ensure compliance, and maximize savings.
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Advantages of VAT Audit Services in Dubai​

Expert Guidance

VAT consultancy services in Dubai provide businesses with expert advice on VAT regulations, helping them navigate complex compliance requirements and avoid costly mistakes.

Compliance Assurance

Professional UAE VAT services ensure that businesses comply with local VAT laws, reducing the risk of penalties, fines, and audits from tax authorities.

Efficient Tax Management

VAT services in the UAE help businesses streamline their VAT processes, making it easier to track and report VAT transactions accurately, which enhances overall efficiency.

Input Tax Recovery

VAT services in Dubai assist businesses in identifying and reclaiming eligible input tax credits, improving cash flow, and reducing overall tax liability.

Risk Mitigation

Help businesses minimize exposure to potential tax disputes and legal issues.

Customized Solutions

VAT consultancy services in Dubai can tailor their approach to fit the specific needs of a business, providing solutions that align with their operational model and industry requirements.

Focus on Core Business

By outsourcing VAT services, businesses can focus on their core operations, knowing that their tax compliance and reporting are in expert hands.

Enhanced Reputation

Demonstrating effective VAT management can improve a company's reputation with clients, suppliers, and regulatory authorities, fostering trust and credibility.

VAT Services in Dubai​

The UAE introduced Value Added Tax (VAT) on January 1, 2018, as part of its economic diversification strategy. With a standard VAT rate of 5%, it’s one of the lowest globally. VAT applies to most goods and services, aiming to boost public sector revenue and reduce reliance on oil income. 

Businesses in Dubai must file for VAT if their annual turnover exceeds AED 375,000, while those earning between AED 187,500 and AED 375,000 have the option to voluntarily file.

Once VAT filing is completed, businesses must charge VAT on their sales, collect it from customers, and file regular VAT returns detailing taxable sales and input tax (VAT paid on purchases). For this VAT return filing services in Dubai are available.

VAT compliance is a critical aspect for businesses, as the Federal Tax Authority (FTA) enforces strict rules and penalties for non-compliance. To minimize tax liabilities, businesses can reclaim VAT paid on purchases through the input tax recovery system, ensuring that only the final consumer bears the tax burden.

Some goods and services, including healthcare, education, and specific financial services, are exempt from VAT or subject to a zero rate. This has led to significant shifts in the UAE economy, driving greater transparency and efficiency in business operations.

For businesses navigating VAT in Dubai, UAE VAT services are essential to ensure compliance and avoid penalties. Expert VAT consultancy services in Dubai offer specialized services, providing businesses with comprehensive VAT audits, ensuring accurate tax filings, and helping to recover VAT on eligible expenses. 

Their expertise minimizes risks, enhances financial reporting, and helps businesses meet regulatory requirements smoothly. A reliable VAT audit service can improve overall tax management, ensuring VAT compliance and promoting business sustainability in Dubai.

What is Voluntary Filing?

Voluntary filing 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 filing, businesses gain the ability to reclaim input tax—the VAT they have paid on their purchases—thereby improving cash flow and reducing overall costs.

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What is Mandatory Filing?

Mandatory filing for VAT is required for businesses whose value of taxable goods and services exceeds AED 375,000 during the previous 12 months. 

Once filed, the business must charge output tax—the VAT collected from customers on sales—on its taxable supplies. 

Failing to comply with mandatory filing can lead to penalties and other legal consequences.

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Is VAT applicable in the UAE Free Zones?

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 filing threshold is AED 375,000, with a voluntary threshold of AED 187,500; non-resident companies must file without a minimum threshold. VAT grouping is allowed under certain criteria. 

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What is the Difference Between Zero-Rated & Exempted Tax Supplies?

Zero-Rated Tax Supplies

Goods and services 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.

Exempted Tax Supplies

Goods and services for which VAT is not charged at all. Businesses dealing exclusively in exempt supplies are not required to file for VAT and are also not eligible to reclaim input tax on their purchases.

What is the Corporate Tax for Free Zone Businesses?

Under the UAE’s new corporate tax framework introduced in June 2023, businesses in free zones can maintain their tax-free status if they meet specific conditions. 

While free zone companies still benefit from a 0% corporate tax rate on qualifying income generated outside the UAE or within the free zone, they must be aware of the regulations.

If a free zone business conducts transactions with the mainland or generates non-qualifying income, a 9% corporate tax rate applies to that portion of profits. For businesses in free zones seeking professional advice on tax matters, corporate tax compliance services from expert corporate tax consultants in Dubai can help ensure full compliance with the new laws. 

Regardless of their tax rate, all free zone businesses must comply with filing requirements, including submitting corporate tax returns to adhere to UAE regulations. Overall, while free zone businesses can enjoy tax incentives, adhering to UAE financial compliance is essential.

Type of Free Zone Description Examples
Designated Free Zones Offer a 0% corporate tax rate for a certain period, no customs duties, and 100% foreign ownership. Transactions within these zones are also VAT-exempt under UAE law. Jebel Ali Free Zone (JAFZA), Dubai Airport Free Zone (DAFZA), Abu Dhabi Airport Free Zone (ADAFZ)
Non-Designated Free Zones Still provide tax-free benefits for a limited time and no customs duties with 100% foreign ownership, but VAT exemptions may not apply. Businesses should consult compliance service providers for VAT and tax guidance. Dubai Media City (DMC), Dubai Healthcare City (DHCC), Ajman Free Zone

VAT Audit Services in the UAE

Account Creation Support

Support for account creation, and guidance from initial filing to ongoing maintenance.

Documentation

Completion of documentation solution for your VAT filing, assessment, and preparation of all necessary documents.

TRN Certificate

Assistance in acquiring and certifying TRN, ensuring adherence to legal requirements.

VAT Filing

Assistance for businesses with the filing process with the tax authorities, enabling them to collect and remit VAT on taxable goods and services.

VAT Return Filing

VAT return filing services in Dubai include the 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

VAT refund service entails businesses claiming back excess VAT paid on purchases that exceed the VAT collected on sales.

VAT Audit

Support during VAT audits conducted by tax authorities, ensuring that all VAT transactions are accurately documented and compliant with VAT laws, and navigating the audit process smoothly.

VAT Accounting

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.

VAT Cancellation

Cancellation of VAT filing with tax authorities when necessary, such as in cases of business closure or when they no longer meet the required turnover thresholds.

Steps for VAT Services in Dubai

Step 01 - Takes 1 to 2 weeks

VAT Filing

Apply for VAT filing through the Federal Tax Authority (FTA) portal and obtain a TRN.

Step 02 - Continuous

Invoicing and Record-Keeping

Businesses must issue tax invoices for taxable supplies and retain proper records, including sales and purchase invoices, for a minimum of five years.

Step 03 - Takes 1 week

VAT Returns Preparation 

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.

Step 04 - Takes 28 days

VAT Returns Submission 

Submit VAT returns through the FTA portal within the specified deadlines (usually 28 days after the end of the tax period).

Step 05 - Takes 1 day

Payment of VAT 

Pay any VAT due as indicated in the submitted return. The payment must be made by the submission deadline.

Step 06 - Takes 1 day

VAT Refund Claims 

If the input tax exceeds the output tax, businesses can claim refunds through the FTA portal within 1 to 2 months.

Step 07 - Continuous

Compliance Reviews and Audits (Ongoing)

The FTA may conduct compliance checks or audits on businesses to ensure adherence to VAT laws.

Step 08 - Continuous

Annual Review and Updates 

Regularly review VAT compliance procedures and update them based on changes in regulations or business operations.

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Documents Required for VAT Services in Dubai

Document Description
VAT Filing Evidence of proper VAT filing and submission with FTA.
VAT Compliance Documents showing adherence to VAT regulations.
Trade License Copy of valid trade license registered for VAT.
Sales Invoices Sales invoices that include VAT breakdown.
Passport Copies Passport copies of business owners or partners.
Purchase Invoices Invoices used to claim input VAT.
Emirates ID Emirates ID copies of owners or partners.
Completed VAT Returns VAT return forms submitted to the Federal Tax Authority.
Business Address Proof Utility bill or lease agreement showing official business location.
Books of Accounts Ledgers, journals, and other accounting records.
Bank Account Details Bank statement or letter confirming business bank account.
Relevant Bank Statements Bank statements relevant to VAT transactions.
Recent Financial Statements Latest audited financials or reasonable forecasts.
Documents for Refund Claims Supportive papers if VAT refund has been applied for.
Import/Export Records If applicable, records related to cross-border transactions.
Contracts and Agreements Contracts that include or influence VAT obligations.