Ensuring full compliance with Value Added Tax (VAT) is mandatory for taxable persons that are subject to it. Introduced in the UAE on January 1st 2018, VAT is a type of indirect tax imposed on the price of a product or service at each stage of production, distribution, or sale to the end consumer. The standard VAT rate in the UAE is 5% which applies to most goods and services albeit with some exemptions. Ensuring VAT compliance in the UAE can be complex for businesses but it is a necessity considering the hefty penalties associated with it.
The best solution for understanding and managing VAT is to hire companies providing reliable VAT services in Dubai, UAE so that business owners can ensure compliance as well as dodge the penalties. Tax Gian, a brand of Jitendra Tax Consultants (JTC), offers actionable insights on VAT requirements in the UAE, with a zero-tolerance approach to compliance failures and administrative errors. Let us discuss the UAE VAT services offered by Tax Gian.
VAT Registration in the UAE
Businesses with taxable supplies and imports exceeding AED 375,000 need to conduct VAT registration in the UAE. Entities can conduct voluntary VAT registration in the UAE if their taxable supplies and imports are between AED 187,500 and 375,000. Businesses are not required to register for VAT if their taxable supplies and imports fall below these VAT registration thresholds in the UAE. VAT consultants in Dubai can assist businesses to register for VAT with the Federal Tax Authority (FTA).
VAT Health Check Services in the UAE
VAT consultants at Tax Gian provide VAT Health check services in Dubai, UAE to examine the effectiveness of a taxable person’s VAT procedures, documentation and control practices. VAT health check covers a review of VAT returns, transactional analysis of the existing transaction scenarios of the company, maintenance of tax records, documentation formats (invoices & Tax credit notes), VAT compliance of the invoice received from the supplier, and key compliance areas of high risk.
Availing VAT health checks in the UAE is necessary to ensure the VAT returns are accurate and in full compliance with the VAT laws and relevant Executive Regulations. The FTA has the power to carry out a tax audit on any tax registrant to see if that person is complying with the UAE VAT Laws and regulations. Any discrepancies detected during an FTA tax audit in the UAE can lead to hefty penalties and other legal consequences. Tax Gian’s tax agents in the UAE can help businesses to prepare for an FTA audit and avoid penalties.
UAE VAT Refund Assistance Service
VAT refund is an important element of an effective VAT strategy in the UAE. Despite its overarching significance, businesses often find it complex to navigate the process of VAT refund in the UAE leading to delays and errors. Taxpayers need to learn about the circumstances in which they can rightfully request a tax refund. They should also understand how to recover the requested refunds without any delays. This can be tricky but Tax Gian’s VAT consultants can make it easier for business owners.
VAT Voluntary Disclosure Assistance
The FTA encourages taxable businesses to submit a VAT voluntary disclosure if they have violated a VAT Law provision or believe they made an error. Taxable persons are allowed to submit a voluntary disclosure to the FTA about an error or omission in their tax return, tax assessment, or tax refund application. The Article 8 of Cabinet Decision No. 36 of 2017 on the Executive Regulation of Federal Law No. (7) of 2017 on Tax Procedures states the circumstances in which taxable persons can file voluntary disclosure.
Businesses can identify the mistakes in the already filed VAT returns by conducting a VAT audit review with the help of FTA-approved tax agents in the UAE. Such a review will help businesses reduce the risk of penalties in case of a Tax audit by the FTA. Tax Gian’s FTA-approved tax agents can help businesses submit VAT voluntary disclosure as per the laws and regulations.
UAE VAT Deregistration Services
When a taxable person ends their business or no longer meets the VAT registration threshold (mandatory or voluntary), they should apply for VAT deregistration in the UAE. Such businesses must apply for VAT deregistration and suspend their UAE Tax Registration Number (TRN) as they no longer require paying VAT. FTA will impose fines on taxable persons if they fail to apply for VAT deregistration in the UAE within 20 days of cessation. VAT consultants in Dubai can help businesses avoid such penalties by assisting with the deregistration process.
UAE FTA Audit Preparation Services
The FTA has the legal right to conduct a tax audit on any taxable person to determine that person’s level of compliance with the UAE VAT law and regulations. An FTA audit in the UAE allows the government to assess the company’s responsibility as a taxable person. An FTA audit ensures that the business in question has paid all its liabilities and that dues are cleared and submitted to the government within the deadline.
However, it may lead to serious consequences and hefty penalties if the FTA finds out about the discrepancy during the audit. Such situations can be avoided by letting VAT consultants in Dubai review the documents and records before the audit. In this way, the businesses can identify the errors and correct them before the audit FTA officials visit the company premises for inspection.
VAT Penalty Appeal & Waiver Services
Taxable persons have the right to challenge the penalty levied on them by the FTA. For this, they need to submit a tax reconsideration request to the FTA within 20 days from the day the taxable person is notified of the decision or clarification. However, the FTA can reject the reconsideration request citing invalid grounds for reconsideration. The affected taxpayer can challenge the decision made by the FTA at the Tax Dispute Resolution Committee (TDRC). Tax agents in Dubai can help businesses appeal to the TDRC and get a penalty waiver if possible.
Tax Gian Provides the Best VAT Services in Dubai, UAE
At Tax Gian, a dedicated team of tax experts are ready to share gian (meaning knowledge) with clients and accountants, new in the country or doing business since years, on basics of VAT or any new updates released by the FTA. Ensuring VAT compliance in the UAE can be complex for businesses. However, it can be simplified by availing the services of the best VAT consultants in Dubai such as Tax Gian, a venture of Jitendra Tax Consultants (JTC), established by Jitendra Chartered Accountants, serving clients since 2001. We registered with the FTA as a tax agent and can offer end-to-end tax solutions for businesses of all sizes. Apart from VAT we also offer excise tax and corporate tax consulting services in Dubai, UAE. We can also represent our clients before the FTA in case of any notices served by the Authority. Talk to our consultants for tax solutions that you can count on.