Every business entity is required to be VAT compliant in order to avoid levy of heavy penalties. There are very strict provisions for non-compliance for deliberate tax avoidance, incomplete and incorrect filings by any taxable person. For being VAT compliant every business entity must obtain the VAT registration, maintain proper books and file timely returns. Theory of VAT is very simple however its application can be complex. VAT is the core competency area of the Rank TAX. Our team of professionals will help you in fulfilling following compliance requirements at reasonable prices
• Obtaining VAT registration, determining threshold limit.
• Preparation and submission of periodical VAT returns.
• Providing assistance during VAT audits
• VAT advisory on day to day basis
• Review of VAT return
• Assistance in drafting appeal letters
• VAT representations with federal tax authorities
Requirements of VAT Compliance
• Invoices Issued
• Invoices received
• Bank Statement
• Debit notes
• Credit Notes
• VAT ledger
What is the threshold limit for obtaining VAT registration?
If the Annual Turnover of the company is more than AED 375,000/, it is mandatory for the company to register under UAE VAT before the end of the year 2017. Further, if the Annual Turnover is between AED 187,500 & AED 375,000/, it is optional for the company to be registered under UAE VAT law. In addition to this, if it is less than AED 187,500/, the company need not register under this law.
When is the VAT returns to be filed?
As per the official site of Ministry of Finance, UAE, the majority of the business entities will be required to file the VAT returns on the quarterly basis, within one month/28 days from the end of the respective quarter.
UAE VAT applicable on both goods and service sector?
Yes, UAE VAT will be applicable to both goods and service sector.
What will be the rates of VAT in UAE?
The proposed rate of VAT in the UAE will be up to 5%.
How to take the refund from VAT?
The registered entities who are eligible to get VAT refund (When input VAT is more than output VAT) can submit the VAT returns to the authority by disclosing the same.
How to file VAT returns?
Every taxpayer can file the VAT returns through the online portal of the VAT. Every taxable person shall prepare and submit the tax return for each tax period to the authority and need to settle the payable tax within the timeframe specified in the tax law.