Everything about VAT Consultancy Services in UAE

Posted by Acquara Management Consultant on May 19th, 2023

VAT consultancy services in Dubai are professional services offered to businesses and individuals to help them navigate the value-added tax (VAT) system in the United Arab Emirates (UAE), specifically in Dubai. VAT consultancy services can help businesses comply with VAT regulations, avoid penalties, and maximize tax savings.

Some of the specific services offered by VAT consultancy firms in Dubai may include:

1. VAT registration assistance:  VAT consultancy firms can help businesses register for VAT with the Federal Tax Authority (FTA) in the UAE.

2. VAT compliance:  VAT consultancy firms can help businesses ensure that they are complying with all relevant VAT regulations, including filing VAT returns, maintaining accurate records, and collecting and remitting VAT.

3. VAT planning:  VAT consultancy firms can help businesses plan their VAT strategy, including determining the most advantageous VAT registration structure and identifying opportunities for VAT savings.

4. VAT training:  VAT consultancy firms can provide training to businesses and individuals on VAT regulations, compliance, and best practices.

5. VAT audit support:  VAT consultancy firms can assist businesses with VAT audits, including responding to audit inquiries, providing documentation, and negotiating settlements.

So, VAT consultancy services in Dubai are designed to help businesses navigate the complex VAT system in the UAE and ensure compliance with all relevant regulations.

How VAT works in Dubai?

In Dubai, Value Added Tax (VAT) was introduced on January 1, 2018, at a standard rate of 5%. VAT is a utilization of tax that is imposed on the sale of goods and services in the UAE. It is charged on most goods and services, including food, clothing, electronics, and entertainment.

Businesses with an annual revenue of AED 375,000 or more must register for VAT with the Federal Tax Authority (FTA). Businesses with revenue between AED 187,500 and AED 375,000 can register voluntarily. Businesses with revenue below AED 187,500 are not required to register for VAT, but they may do so voluntarily.

Registered businesses are required to collect VAT from their customers and remit it to the FTA. They can also claim an input tax credit for VAT paid on their purchases, subject to certain conditions. Failure to follow the VAT regulations can lead to legal penalties and fines.

Tourists visiting Dubai can also claim a refund on the VAT paid on their purchases, subject to certain conditions. The refund can be claimed at designated refund counters at the airport before departing the country.

Expertise of a VAT advisor–

A VAT (Value Added Tax) consultant is a professional who specializes in advising businesses on VAT-related matters. Their expertise typically includes:

1. VAT registration and compliance:  VAT consultants can guide businesses through the registration process for VAT, as well as ensure that they remain compliant with VAT regulations.

2. VAT planning and structuring:  VAT consultants can assist businesses in developing strategies to minimize their VAT liabilities while remaining compliant with regulations.

3. VAT recovery and optimization:  VAT services firm can help businesses identify opportunities to recover the VAT they have paid, as well as optimize their VAT recovery processes.

4. VAT audits and investigations:  VAT consultants can represent businesses in VAT audits and investigations by tax authorities and help resolve any issues that may arise.

5. Cross-border VAT issues:  VAT consultants can advise businesses on VAT-related matters that arise when dealing with cross-border transactions, such as import/export VAT and VAT in different jurisdictions.

Need for VAT consultants in UAE–

Value-added tax (VAT) came to the UAE on January 1, 2018. Since then, businesses operating in the UAE have had to comply with VAT regulations, including registration, filing returns, and payment of VAT. This has created a need for VAT consultants in the UAE.

VAT consultants can assist businesses in the following ways:

1. Registration:  VAT consultants can help businesses register for VAT and obtain a VAT number.

2. Compliance:  VAT consultants can help businesses understand and comply with VAT regulations, including the preparation and submission of VAT returns and payment of VAT.

3. Planning:  VAT consultants can assist businesses in planning their VAT strategy to optimize their tax position and reduce their VAT liability.

4. Training:  VAT consultants can provide training to businesses on VAT regulations, processes, and compliance requirements.

5. Auditing:  VAT consultants can perform VAT audits to ensure that businesses are complying with the VAT regulations and identify any areas of non-compliance.

Therefore, the complex nature of VAT regulations in the UAE has created a need for expert advice and guidance, which VAT consultants can provide to businesses.

Conclusion–

Acquara Management Consultant, one of the best financial advisory companies and providers of vat consultancy services in Dubai can offer a complete range of Value Added Tax (VAT) related services in Dubai. Acquara helps businesses in Dubai to navigate the complex world of VAT and ensure that they are meeting all their obligations while minimizing their VAT liabilities.