Value Added Tax: A Brief Overview

Dubai requires all businesses operating in the country to file their VAT returns. Consumption tax, also known as Value Added Tax, is imposed on goods and services. This tax is imposed at various stages of the supply chain. From the point of manufacturing to the point of purchase, the value is added. When it comes to Value Added Tax, the end-customer is responsible for paying the tax.

As everyone knows, the UAE implemented the Value Added Tax in 2018. There is a 5% VAT rate in the UAE. It is considered as a revenue generating source for the government and the revenue generated is utilized to improve the services offered to the residents. VAT is fully based on consumption of the customers. Irrespective of the income everyone has to pay VAT at the point of consumption. The Federal Tax Authority (FTA) has made it mandatory for all taxable persons and businesses to VAT returns filing as recommended. VAT Consultancy provides hassle-free VAT return filing procedures in Dubai and other Emirates. Get in touch with Vat Consultancy for VAT filing in Dubai, VAT filing in Abu Dhabi and VAT return filing in other emirates.

VAT Return Filing 

Calculating VAT is a tedious and complex process since it requires compiling and calculating all taxable supplies and exports for a period. Tax returns are filed through the Federal Tax Authority’s online portal after subtracting net supplies and demand. Form VAT 201 can be filled out under the e-services at eservices.tax.gov.ae by visiting eservices.tax.gov.ae and completing the form for return filing.

VAT is applicable equally to companies registered in the emirate’s mainland and free zones, although goods are considered tax-free on exchange between designated zones.

Due to the requirement for consolidated sales and purchase information, filing a VAT return in the UAE can be difficult for businesses with no prior experience in filing a VAT return. Hence it is advisable for all kinds of VAT compliant  businesses to go for VAT filing services in Dubai or VAT filing services in Abu Dhabi offered by expert vat consultancy like  Vat Consultancy Dubai due to a number of benefits:

  • Obtain and compile all VAT filing transactions in terms of the format specified by the FTA.
  • Prepare summaries and comprehensive details of sales/purchases, outputs and inputs of VAT.
  • Eradication of all chances of missing the deadline.
  • Using the latest tax software to file taxes efficiently.
  • Availability at all time for any clarifications by the authority or clients

If the supplies are less than the purchase you need to apply for VAT refund and In such cases you need to apply separately furnishing all documents required by the FTA. All the documents related to business and VAT returns should be maintained and are liable to furnish as and when required by the FTA.

How does Accusafe Taxation Consultancy Services file your VAT return?

Accusafe Taxation Consultancy Services offers support and assistance in submitting your VAT return by a team of highly skilled tax experts.

  • During our frequent visits to your office, our team will collect all of the information and records that are necessary for completing your tax return. In compliance with the VAT laws applicable in the UAE, our team will prepare and submit the tax return on your behalf at the end of each tax period.
  • In accordance with VAT law, our tax experts will also be able to give you recommendations regarding payment of tax liabilities.
  • You can be assured that your return will be filed within the FTA’s timeframe.
  • Our tax planning services are tailored to the client’s needs.

Our professional Tax Consultancy Support is at call away to serve you with our Professional Tax / VAT Consultancy Services, which include filing your VAT returns and assisting you in implementing VAT across your organization, as well as training your staff to follow required processes in place. Call us for your VAT return filing in Dubai or VAT return filing in Abu Dhabi or any other emirates in UAE.