Best VAT Consultants in Dubai and the UAE
VAT (Value Added Tax) is a tax on the consumption or use of products and services charged at each point of sale. VAT is a form of indirect tax and is collected in more than 180 countries around the globe. A 5% tax rate (VAT) was introduced in the United Arab Emirates in January 2018.
Although VAT is great for the country, many owners of businesses in the UAE are still struggling with VAT formalities. By making a few VAT miscalculations you’ll be opening yourself to fines.
VAT landscape is not that complicated when you have the right guidance. To understand it more, here are some points that you need to know with the VAT registration in UAE:
Not all companies are required to pay the VAT.
Companies need to register for VAT in UAE if they have imports and supplies exceeding AED 375,000 per annum. If your imports and taxable supplies fall under this, it is optional for you to register for VAT.
Knowing when to apply for VAT or deciding voluntarily is difficult. If you didn’t register when you should, your company will be subjected to fines.
With a number of VAT consultants in Dubai like us, you can seek advice to help you get through the hurdles that you may face in VAT registration. This process is also associated with an administrative burden as you need VAT return filing accordingly and on time. IsraEmiratesLink is known of having the best VAT Consultants in Dubai and the UAE, we are here to ensure that you are checking off the right boxes to guard you against risk.
Not all products and services are subject to VAT
Not all products and services are subject to value-added tax. For example, healthcare services, educational services, and investment-grade precious metals. There are also sectors that are exempted from VAT such as residential properties and local passenger transport. That's why most businesses prefer working with us, as our team of VAT Consultants in Dubai and the UAE provides a clear idea of what you need to do regarding the VAT process.
The only difficulty here is that exempt goods and services are totally exempted from VAT but these will still be considered VAT taxable at 0%. All these zero-related goods and services must be recorded and reported for VAT purposes. That's why we hire top VAT Consultants in Dubai to help you avoid ending up overpaying or underpaying which means keeping your business away of penalties.
The standard VAT rate is 5%
UAE is one of the countries with the lowest VAT in the world. If you are over the AED 187,500 threshold but not over AED 375,000 threshold, this might push you to register voluntarily. However, the below criteria might help you decide whether to register or not:
If a business exceeds AED 375,000 per annum for the taxable supplies and imports, it should be registered for VAT.
It is not mandatory for businesses whose imports and taxable supplies are over AED 187,500 per annum to register for VAT.
The tax that was being collected from the customers was being paid by the business house. At the same time, the business house receives a refund from the government on tax that it has paid to its suppliers.
The foreign business may reclaim the VAT they incur when visiting the UAE
Working with VAT consultants in Dubai and the UAE will help you decide whether you need to register your business for VAT. They will also help you see the future costs relating to this matter. As one of the top VAT Consultants in Dubai and the UAE we provide VAT advisory services to guide you in some way to financial planning so you’ll never pay more or less than you should.
Some free zone business formations are exempt from VAT
As a business person who wants to establish a company in UAE, you should be 100% sure upon the business company formation that you will start. Some free zones are known to be exempted from VAT. You can simply avoid an extra inconvenience from the compliance and registration if you would consider a VAT-exempt free zone. At IsraEmiratesLink our team of the best VAT Consultants in Dubai and the UAE, can help you to understand the VAT laws and VAT refund services in the UAE.