VAT SERVICES
Value-Added Tax or VAT is a tax on the consumption or use of goods and services raised at the point of sale. The VAT is a form of indirect tax and is applicable in more than 150 countries around the world. All countries have VAT (or similar regulation). While it feels similar to Sales Tax generally imposed on end-consumers, VAT is a more advanced tax system and overcomes many challenges that affect the general sales tax.
As each jurisdiction has its own rules on accounting and the timeframe for submitting tax returns, THE BUSINESS SETUP will contact you at the right time to ask you to provide us with the necessary documents to draw up the accounts.
Our VAT Services
Accounting
Preparing Financial Statement
Auditing
Complete Tax Returns
VAT is a form of indirect tax and is applicable in more
than 150 countries around the world.
Registering for VAT
An entity must register for VAT if their taxable income exceeds the mandatory registration limit of AED 375,000. Furthermore, an entity may choose to register for VAT voluntarily if their income is less than the mandatory registration limit but exceed the voluntary registration cap of AED 187,500. Similarly, an entity may register voluntarily if their expenses exceed the voluntary registration cap of AED 187,500. This option to register voluntarily is available to enable start-up companies with a low turnover to register for VAT.
Mandatory VAT rules on entities
● Must charge VAT on taxable goods or services they offer
● May reclaim any charged VAT on business-related goods or services
●Keep accounts record which will allow the government to evaluate and receive the collected VAT
The designated zones are exempted from VAT
According to a cabinet decision no 59 of 2017 on designated zones for the purposes of the federal decree law no 8 of 2017 on Value Added Tax, there are some VAT exempted zones:
Abu Dhabi
● Abu Dhabi Airport Free Zone
● Khalifa Industrial Zone
Ras Al Khaimah
● RAK Maritime City Free Zone
● RAK Airport Free Zone
Sharjah
● Sharjah Airport International Free Zone
Ajman
Umm Al Quwain
● Umm Al Quwain Free Trade Zone
Fujairah
● Fujairah Free Zone
We Provide Free Consultation
A good business consultant has experience in the business world and comes to you with fresh eyes and a range of experience. While you know the history of your business and how you got where you are. When you’re running your business, it’s hard to step away and take an honest outside look at how you’re doing and whether you’re making mistakes.
