VAT CONSULTANCY SERVICE IN UAE
Fz business management consultancy has an experienced taxation team that can assist you in all the aspects of VAT in Dubai and other emirates of UAE.
VAT Consultancy Service
It has been thought-about as a mandated consumption tax on products and services. At present, virtually 160 countries have levied this idea in their country law and therefore the increasing rate of VAT acceptance has resulted in a higher number of VAT Consultancies If your business hasn’t been registered for VAT services, this can be the primary crucial job that must get done. To know the rationale behind the urgency, do continue reading.
VAT CONSULTANCY in UAE
Whenever a business operates, claiming VAT returns turns out to be a mandate. Realizing this, recently the GCC countries have agreed on implementing VAT and agreed to initiate the implementation by 1st Jan 2018 with a tax-rate levied at 5%. Being registered below the VAT law defines that your business is recognized by the govt. Now, to ease the process, certain categorization has been made similar to that of an income-tax slab, there exists a VAT slab VAT payment. Let’s have a glance at it.
Value Added Tax (VAT)
All member countries from the GCC aim to implement VAT, effective from first January 2018, once having the GCC VAT framework signed earlier this year. The framework articulates rules to be followed by the member countries below the VAT tips. VAT Implementation needs involvement from the whole organization thanks to the impact it’s across the whole organization.
The voluntary registration process is also open for businesses less than the minimal annual revenue. The VAT will be applied to all goods and services, expect the necessities, with a flat rate of 5%.
We at Fz Business Management Consultancy are ready to help your business in the UAE get ready with your VAT Plan.
Equipping your business for VAT
Plan Your Strategy:
Decide on a VAT implementation strategy. Explore the choices of outsourcing the implementation method or managing it in-house.
Appoint a team that’s well aware of the VAT situation within the region and equipped with the knowledge to successfully implement the required processes.
Learn VAT Applications:
Understand VAT treatment on each commercial activity of the business
Absorb Information: understand however VAT impacts business functions and processes just in case of revenue, value and dealing capital.
Assess current capabilities:
Assess your current ERP system. Generate awareness amongst existing staff and provide pieces of training if necessary.
Who will pay VAT in Dubai?
- Companies & corporations with annual revenue of equal to or more than 375,000 AED
- 5% VAT will apply to all the non-essential commodities and consumers purchasing these commodities will pay VAT. The VAT will be applied separately from an excise tax that is already in effect on tobacco, energy drinks, and soft drinks
- All the commercial tenants will pay tax. This include shops, offices, etc
- Sales of commercial properties are subjected to the standard VAT rate
- The VAT will be applied to goods imported to Dubai. In the case of product for re-export, VAT will only be applied once within the final destination of products
Who will be exempted from VAT?
- Purchase of all the essential product, as well as a food product, medicines, academic commodities, etc., are exempted from VAT
- The VAT will not be applied to businesses that provide essential services like education, health, etc.
- There will be on VAT on residential tenant contract
- Selling of recently made homes is additionally exempted from tax