VAT Consultancy In Abu Dhabi, Dubai, UAE
Hedge Accounting Solutions provides expert and professional VAT services in UAE for your business. We are the best VAT consultants in Abu dhabi, Dubai, UAE
VAT Consultancy Services in UAE
VAT, or Value Added Tax, is an indirect tax that is levied on all taxable goods and services. Registered sellers will collect VAT from buyers on behalf of the government, which makes it an indirect tax.
As per the Federal Law No. (7) of 2017 on Tax Procedures, a taxable person needs to submit a VAT return in UAE with the information and data specified for Tax purpose in accordance with the form, specified by the Federal Tax Authority (FTA). Every taxable person is required to submit the VAT Return for each Tax period within the time prescribed by the FTA and this must be in accordance with the provisions of the UAE VAT law. The taxable person is also liable to remit the tax due to the FTA within the time frame specified by the UAE VAT Law.
Hedge Accounting Solution will help you gain in-depth knowledge regarding the implementation of VAT in your organisation. Our Tax experts are well experienced to assist you in this filed. We are the leading and the best VAT consultants in Abu Dhabi, Dubai, UAE.
For assessment, consultation and Implementation of VAT in UAE, you can reach us any time at info@hedgeasglobal.com or call us at +971 52 443 3904 or +971 50 225 3373
Who should register under VAT?
Are all businesses liable to register under VAT?
No, only those businesses crossing the defined annual aggregate turnover threshold are liable to register under VAT. Based on the registration threshold, a business will either be mandated to register or as an option, a business can apply for registration or can seek exemption from VAT registration
Legal Enactment of VAT in UAE
In line with the said Economic Agreement 2001, based on the decision of Supreme Council of GCC, held in December 2015, and keeping in mind the uniformity in imposition of VAT by the GCC States, the decision to establish a unified legal framework for the introduction of a general tax on consumption in the GCC known as VAT was made. Such agreement is termed as “Common VAT Agreement of the States of the Gulf Cooperation Council (GCC)”, and commonly called as ‘Unified VAT Agreement’ or ‘GCC VAT Framework’.
The GCC Framework contains 15 Chapters consisting of 78 Articles covering different aspect starting from definitions, scope of tax and supplies, place of supply, tax due date, calculation of tax, and value of supply so on. The Framework Agreement provides for various tax treatments of different types of transactions in different circumstances. Though the Framework Agreement covers most of the aspects of VAT law to be implemented in GCC countries, the final law to be implemented by the respective countries will be formulated by them an adopted. In lien with understanding of framework, ‘United Arab Emirates’ & ‘Kingdom of Saud Arabia’ has already finalized their VAT law, whereas other member states are yet to come up with their respective laws. It is expected that other member states will impose the VAT law i the year 2019-2020.
Introduction of VAT in UAE
The United Arab Emirates is a federation of seven emirates which included emirate and local government. The United Arab Emirates does not have any federal Income Tax. The UAE Government implement the VAT (Value Added Tax) in the country from 1st January 2018 with a standard rate of 5% that too on destination taxation based principal, i.e. tax will be levied based destiny of goods or services. That is what the reason the Exports are tax free while Imports are treated at par with domestic products and services.
Factors leading to introduction of VAT on the basis of GCC:
- GCC Countries have dependent on only oil, the largest revenue contributor to most of these countries economic growth.
- Recent budget included subsidy reforms and plans to diversify the economy to the non-oil sector and reduce wasteful expenditure.
- Due to the anticipation of higher oil prices GCC expect the oil average at USD 45-50/bbl. in 2017 but at the November end it would be USD 60/bbl.
- To increase the non-oil sector government introduce the VAT (Value Added Tax) that would be counted as 5% in January 2018. Basically according to IMF revenue for VAT which contributes its 2.1% to the UAE’S GDP. Qatar & Kuwait are expected to generate around 1.1% & 2.1% of GDP.
The core principles of VAT Law in UAE are drawn from Sharia Law; most of the legislations are comprised of a mix of Sharia and European concepts of civil law. The principles of Sharia Law are applicable to business transactions and have influenced the development of the commercial code. These principles have influenced the drafting and interpretation of laws in the UAE.
How can VAT Process help your business growth?
VAT immensely contributes towards providing you a new avenue from which your business can generate revenue. This paves out a way for extensive planning and leverage the business growth to the next level.
Registering for VAT will lead to your business getting noticed by the government of the country. This maximizes the chance of earning a good reputation, and enhancing your company to enhance its goodwill.
VAT is a mandate for companies as per the UAE VAT Law. Registering a business for VAT with expert consultants ultimately completes the financial picture that is required during an internal and an external audit New Investment Opportunities Being a VAT registered business, you will be noticed more by the prospective clients, which would ultimately bring more business. On the other hand, it also opens new investment doors for your business to secure it’s future
How Hedge Can Help You ?
Our Tax professionals in Hedge Accounting Solution can support you in the following areas:
The best VAT consultants in Abu Dhabi, Dubai, UAE offers professional VAT services for our valued clients.
- We will visit your office on a periodical basis (weekly/month) to compile the information for filing the VAT Return. At the end of each VAT return period, we prepare the VAT return on behalf of your company in accordance with the provisions of UAE VAT law.
- We ensure that the VAT returns are filed within the specified time in each tax period.
- Proper guidance for the payment of Minimal Tax Liability as per the provisions of the UAE VAT Law.
- Optimal Tax Planning for the company.
- To represent in front of the authority on behalf of you as and when required.
