Navigating the UAE’s Value Added Tax (VAT) landscape can be a complex journey. But you don’t have to embark alone. AMA Audit Tax Advisory, a leading firm in the UAE, stands as your trusted guide.
Our dedicated VAT consultants offer comprehensive expertise, from registration and compliance to optimization and dispute resolution. They excel at demystifying VAT regulations, tailoring solutions to your specific needs, and ensuring your business stays compliant while maximizing efficiency.
With a proven track record and a personalized approach, AMA empowers you to navigate the VAT journey with confidence, leaving you free to focus on what matters most: growing your business in the vibrant UAE market.
Value Added Tax (VAT)
The UAE’s 5% Value Added Tax (VAT) affects most goods and services, impacting both businesses and consumers. While it adds a small cost increase, it contributes to the country’s development. VAT registration is mandatory for businesses earning over AED 375,000 annually, and compliance ensures smooth operations and avoids penalties. Remember, understanding VAT regulations unlocks benefits like input tax credits and efficient financial management.
• VAT Health Check
At AMA, we have a dedicated tax team who are well versed with the UAE VAT law provisions and are experienced in all sorts of industries including a range of large and MSME companies. Their expertise offers us a great support, so as to conduct VAT health check in UAE where all areas will be reviewed. We shall suggest necessary corrective actions to rectify any errors and streamline the documentation process, thereby preparing the client if any tax audit arises.
• VAT Registration, De-Registration
AMA comprises of experienced Tax Consultants in UAE, for assisting new and existing registrants to fulfil UAE VAT administrative formalities related to VAT registration and deregistration.
The tax expert shall guide the registrant with the requirements of documents and information for effective on-time submission of registration and deregistration to obtain timely approval, based on the business structure and requirement. There is a follow up done by the tax team with the Federal Tax Authority (FTA) officers on a regular basis, to identify any further requirements of information and accelerate the administrative process.
• VAT Voluntary Registration and Disclosure
Registration for VAT is not mandatory for every business firm in the United Arab Emirates (UAE). Though the FTA does require some entities to register for VAT, it is voluntary for small businesses, entrepreneurs, and freelancers who have still not reached the statutory VAT registration level. All entities that are not compelled to register for VAT, but having a place of business in the United Arab Emirates (UAE), are offered the opportunity to do so on a voluntary basis. The AED 187,500 voluntary organisations threshold is half of the mandatory registration threshold.
• VAT Return Filing & Refund
AMA has experienced tax consultants, who are exceptionally great at reviewing periodical returns of corporate tax payers across diverse industry sectors, ranging from mid-size corporate clients to large corporations having their presence locally as well as internationally.
AMA offers return review services in UAE as a part of Tax agent services or Tax consultant services, where filing of accurate return will be ensured on timely basis. This return review also ensures that the input tax claims, reporting of sales figure and import transactions are in compliance with the UAE VAT law and executive regulations.
• VAT Due Diligence
The VAT governing laws and regulations are constantly evolving. Regarding all the latest changes, UAE VAT Due Diligence will keep the company up to date, detect adherence gaps, and provide the right strategy to minimize or prevent negative repercussions.
The tax team at AMA, are well-versed in UAE VAT legislation requirements and has worked in a variety of sectors with both small and large businesses. Their knowledge and expertise in this area, will help with the VAT Due Diligence in the UAE, where thorough examination will be done on every aspect. Our team would guide and recommend you with the appropriate measures to resolve any inaccuracies.
In order to identify any possible pitfalls, Due Diligence can be said to be an act of gathering, interpreting, and assessing a company’s information in order to identify any possible pitfalls. Due diligence allows the buyer of a company to research and reduce any dangers related to the firm’s legislative framework, tax or VAT compliance, workers, consumers, marketplace, investments, and liabilities.
• VAT Audit
The UAE government has applied VAT on the supply of taxable goods and services starting on January 1, 2018. To evaluate tax compliance, the Federal Tax Authority(FTA) can audit firms that are obligated to pay taxes. Our VAT audit services in UAE can assist you in discovering and disclosing any key flaws in the VAT environment, such as transaction verification.
AMA’s VAT audit services will result in a thorough and critical examination of the entity’s VAT accounting and return filing, which would be in accordance with the Federal Tax Authority’s guidance note on document management, tax collection, payment, and input tax claim, among other things. Also, for future reference, a report is published by the organization, depending on the agreed-upon processes.
• VAT Penalty Waivers
According to the Federal Tax Authority, by various mechanisms, the taxpayer has been given the right to apply for reduction or exemption from Tax law administrative penalties. The waiver or reduction will be at sole discretion of the FTA based on the merits of the case.
Considering our vast experience and knowledge in the subject, our experts at AMA can assist companies in compiling and submitting all the necessary documents required for the penalty waivers, within the stipulated time period of 20 business days. Our professionals will provide you with in-depth insights into the procedures of the legal provisions. We can assist you with drafting legal and expert submissions to include technical and procedural arguments.
Frequently Asked Questions
Q: What are the filing requirements?
Every quarter, you need to electronically submit VAT returns detailing your sales, purchases, and input tax claims. Remember, late or inaccurate filings will attract penalties, so stay accurate and timely.
Q: What happens if I don’t comply with VAT regulations?
Non-compliance is a serious offense, punishable by hefty fines, penalties, and even potential business closure. Consulting a tax professional can ensure smooth compliance and avoid these pitfalls.
Q: Does VAT apply to tourists?
Good news for globetrotters! Tourists visiting the UAE for less than 183 days typically get a VAT-free experience on essential services like hotels and restaurants. So, relax and enjoy your vacation without worrying about extra taxes.
Q: Which goods and services are exempt from VAT in the UAE?
Several essential goods and services are exempt from VAT in the UAE, including:
- Basic foodstuffs: This category covers essential food items like milk, bread, fruits, vegetables, and meat.
- Healthcare: Public and private healthcare services, including medicines, are exempt from VAT.
- Education: Public and private schools and universities are exempt from VAT.
- Local passenger transport: Public buses, metros, and taxis are not subject to VAT.
- International transport: Airfares, sea cargo, and other forms of international transportation are exempt from VAT.
Q: What are the different VAT rates in the UAE?
Currently, there are only two VAT rates in the UAE:
- Standard rate: The vast majority of taxable goods and services are subject to a 5% VAT rate.
- Zero rate: This rate applies to specific categories like the ones mentioned above and exports outside the GCC (Gulf Cooperation Council) member states.
