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Top 10 Chartered Accountant Companies in Dubai

Discover Dubai's top 10 chartered accountant companies, offering expert services in auditing, tax planning, and financial consulting for businesses.

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Things to Consider When Choosing Accounting Services in Dubai

Choosing an accounting service in Dubai is not an easy task especially for CEOs or business owners. There are many factors out there which needed to be taken into consideration while selecting any professional accounting service to handle your accounting related tasks.

It is easy to find an accounting services providers but choosing perfect and right option required lots of things to check. Here's a comprehensive guide highlighting important factors for selection of a professional accounting firm in UAE:

Review Accounting System

Before selecting any accounting services, begin with an internal team to discuss the company's accounting system. Have a discussion about necessary points and enlightens specific areas where improvement is required. This will give you an exact idea whether the team is capable of handling the requirements; otherwise try searching for any external accounting service provider.

Shortlist Requirements

There are several factors involved in accounting services. But you need to sort the list of services that will fulfill your requirements like outsourcing the entire accounting system or bringing a financial officer or consultant.  

Set the Budget

Always have a detailed quotation from different accounting firms in Dubai, so it would be easy for you to estimate the necessary costing that's suitable for your budget.  

Complete Inspection

Professional accounting service providers will give you appropriate views of expectations & deliverables. You can always request for financial reports, demo works and client testimonials to understand the working process and reviews of previous clients. Also look for specified references from clients if you have requirements to serve from niche industry, so you can get the best ways to handle your sole requirements.

Future Vision

The most important point is defining a future vision; how will an accounting services or firm assist your business or how the accounting process will be completed. Professional accounting services providers like Sarah Ferguson can help you visualize your future before you select them.

Final Thoughts

The selection of professional accounting service providers is important to ensure smooth running of financial operations of any business. It’s imperative to have a proper analysis before selecting anyone. Also make sure to introduce your selected service provider with your team members for better interaction, guidance and management. This will also ensure transparent communication and good productivity.

Please Visit: https://www.taxconsultancy.ae/

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Advantages of Hiring Best VAT Services in Dubai

According to latest tax laws in Dubai, every business is liable to pay VAT of 5% which is also dependent on the criteria of exceeding amount of AED 375,000. The government of Dubai has been helping the organizations to increase the efficiency by implementing value added tax (VAT).

Implementing VAT in Dubai was a strategic move by the governing body for stabilizing the economy and generates revenue. There are numerous VAT service providers offering professional services with efficiency and compliance. But some businesses are still of the opinion that hiring a VAT consultant in Dubai is expensive and non-beneficial. But the reality is opposite of the mindset. There are many professional VAT consultants in Dubai providing VAT consultation to both start-ups and established companies across the UAE.  Here's a look at some advantages of hiring VAT consultants in Dubai:  

Good Knowledge:

Professional VAT consultants in Dubai have superior knowledge about everything related the taxation. It’s beneficial for companies not familiar with rules and regulations about calculating VAT and the payment processes since professional VAT consultants are well-versed with applicable VAT laws & rules to educate the taxpayers.

Efficiency & Experience:

It’s evident that professional VAT consultants put extra efforts to make sure that VAT filed is correct. The submitted information is checked thoroughly with digital systems and manual reviews to maintain data accuracy. Also an experienced VAT consultant will be capable of avoiding common mistakes made during the filing of VAT return in UAE.

Time Saving & Reduce Risks:

Another important reason for hiring a professional VAT consultancy service in Dubai is reducing the time for analysis and assessments. Experts of VAT consultancy in Dubai have vast experience of dealing with every possible risk involved with VAT and advise the best option available for a company.

 Improved Audit Reports & Finance Process:

VAT consultants will assist you in proper maintenance of records to stay prepared for vat audits along with active consideration on finance related tasks and activities.

Responsibilities of VAT Consultant include:

Maintain bookkeeping and accounting process

Accomplish the VAT filing process

Ensure compliance with UAE Federal Rules

Provide value-added services

Conclusion

All the registered businesses in UAE face huge challenges while filling VAT returns to ensure their compliance for UAE Federal Laws. And since VAT is a newly adopted law, it requires experienced and qualified Tax professionals like Sarah Ferguson to support the businesses with necessary expertise and knowledge regarding VAT laws.

Visit VAT Services in Dubai to get more details!

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Input VAT Recovery Time Frame - UAE

The Federal Tax Authority (FTA) in UAE has issued a detailed explanation on time-frame for the recovery of Input VAT Tax. This document gives a detailed brief of the terms and conditions for the Input Tax recovery and ways to make payment for the supply which should be within 6 months of the agreed payment date. FTA also added that these conditions will only be fulfilled when the tax-payer finishes the internal process and forms an intention to make the payment within specified period. It’s assumed that debate for "two-tax-periods" will end for the recovery of Input VAT through this clarification which is leveled with on-going business practices.

Time Frame for Input VAT Recovery:  

Article 55 of the Federal Decree-Law No. 8 of 2017 on Value Added Tax (VAT) describes the time-period within which the input tax should be recovered by a taxable person. It clarifies the FTA's position in relation with clarification of Article 55 of the VAT Law and explain the time-interval within which the input tax should be recovered and recourse available for the taxpayers in the instance where its not recovered within specified time.  

Conditions for Input VAT Recovery:

Input tax can be recovered in the first tax period only with two conditions fulfilled:

1.   All invoices are received; and

2.   Intent of making the payments of consideration for the supply in six months of agreed date of payment.

Like mentioned above, FTA only consider the conditions of Article 55 of the VAT Law fulfiled only when the taxable person finishes all the internal approval forms and process with an intention of completing the payments within specified time, means a person before recovering input VAT needs to establish that in addition of having a tax invoice, he/she has also fulfilled the condition of doing all payments within the given time intervals.  

To avoid any doubts, pen down that when a tax invoice is received in 1 tax period and the notion to make payment is announced in later tax period, then input tax can only be recovered in later periods only.

Moreover, if the input tax is not recovered within the specified tax period with both the conditions satisfied, the tax payer can recover the input tax in the very next tax period. Also if the input tax is not recovered within first two tax periods then a tax payer must submit a voluntary disclosure. This disclosure should specify the reported input tax in the VAT return within two tax periods.

If a tax payee doesn’t make the payment of consideration within six months of the agreed payments date, the tax-payer must reduce the input tax in the VAT Return of the tax period after the expiration of six-month period. Moreover, if the payment is made, the tax payer will again be entitled to recover the input tax.

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TRN Number in UAE

The TRN (Tax Registration Number) is a special number for individuals who are registered for value-added tax (VAT) in the UAE by the Federal Tax Authority. The implementation of VAT was an addition in the UAE taxation law implemented on 1st January 2018. Like explained in our previous posts the law required companies to be registered for charging VAT to their customers.

It’s a 15 digit identification number from which the federal tax authority will be able to differentiate businesses. The organization to which the number issued is called “Registrant”. Therefore, every organization should always mention this number in tax invoices, VAT returns, tax credits, etc.

The issued number gets automatically sent to you after the VAT registration application is approved. Thus, the companies or traders having TRN certificate are allowed to charge VAT to their customers. TRN utilizes the government to track all the transactions made by individuals or businesses.

Essential Criteria’s for VAT Registration

The eligible organization must     pay the collected tax from customers to the government. Similarly the     organization must receive a refund from the government on tax paid by the     organization to its suppliers.

Businesses whose supplies and     imports exceed AED 187,500 can register voluntarily for VAT.

Businesses whose taxable     supplies and imports exceed AED 375,000 must register and pay VAT.

Foreign businesses can recover     the VAT they paid while visiting the UAE.

How to Apply for VAT & TRN

The registering process for VAT and TRN number is similar:

Login     to your E-services and create an account through an online portal that is easy for individuals and UAE government. 

After     registering for VAT you must click on the button to get all the details regarding VAT in     UAE.

Complete the 8 sections of the     VAT application with required details. Afterwards, “submit the details for     approval” and when approved one would be registered for VAT in UAE and TRN number with     certificate would be sent.

There     are a number of essential documents necessary to be registered for VAT in     UAE. Which may vary depending on the nature of the business. However, the     most common required documents are:

·         The trade license copy of the business.

·         The company’s address (including P.O box) and contact details.

·         The owner’s contact details.

·         The company’s memorandum of association with bank details and income statement for the past year.

·         The partners’ or business owners’ passport copies, ID issued by the Emirates government.

How to verify TRN?

Log in into E-services portal     on the FTA website using the login credentials.

Click on the “TRN verification”     on the top corner to open up the verification page.

Enter your TRN number in the     search box and press enter. If the number is a verified one, then the result would show-up.

At the end, it’s essential to recognize the process of VAT has been made easy for the applicant and the government. All can happen with just one click.

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What are Zero-Rated Supplies in UAE VAT?

The term "Zero-rated supplies" in UAE refers to any taxable supply on which VAT is zero charged. Moreover taxation charged here is based on the nature of supply, despite the goods or services stocked or specified goods or services enlisted under zero rated list.

In general, total export of goods and services in UAE is considered as zero rated supplies, however certain conditions are applicable for a supply to be qualified as zero-rated in UAE executive regulations.

Which service or goods are zero-rated for VAT in UAE?

The following categories of goods & supplies are zero rated in UAE. But as mentioned above, supplies & services need to meet all conditions mentioned in UAE executive regulations:

1. Any direct/indirect export of goods & services outside enforcing States

2. Telecommunications Services that's exported

3. Global transportation service for Passengers and Goods

4. Stock or import of investment precious metals (gold, silver and platinum with purity of 99% or more) which is tradable in global bullion markets

5. Residential buildings designed for commercial residence including hostels for college students or school pupils, armed forces and police, orphanage, nursing home, and rest homes

6. Buildings used by charitable trusts  

7. Education services

8. Healthcare services

What is the difference b/w Zero rate and Exempt supplies?

It’s an obvious question, since conclusion of both zero-rated supplies and exempt supplies are same, but difference is in the process of claiming input tax credit (ITC). If you purchase goods or services noted as zero-rated supplies, you can claim paid VAT as ITC and set-off against your output liabilities. But for exempt supplies, claiming ITC on VAT paid on your purchases is not applicable. Also, you'll be needed to report the details of zero rated supplies and exempt supplies separately in VAT Return.

To conclude, if you have any doubt regarding VAT policies in UAE, better to consult any trusted vat consultants in Dubai for more clarifications, since it’s important for businesses to know about the zero-rated supplies in detail along with the difference between zero-rated and exempt supplies as VAT charge rules are bit-different in each of these cases. It will also be helpful for the organizations in making accurate claims of ITC and VAT returns.

Get more details visit www.taxconsultancy.ae!

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VAT Refund Scheme on Goods & Services Linked With Expo 2020 Dubai

As the countdown for "World’s Greatest Show" begun, Dubai government has initiated several measures for providing the best of facilities to people visiting here from across the globe. In continuation, FTA (Federal Tax Authority) has rolled out notifications about conditions and procedures for grant of VAT refund to business officials in UAE for facilitating suitable foreign business visitors/businesses to file VAT refund claims for expenses incurred in UAE. Here's an overview of key points from the scheme

Eligibility for refunds claim:

·        One having no place of establishment/ fixed establishment in UAE

·        Not a taxpayer in UAE

·        Not a business owner in UAE

·        Conducting business outside UAE

·        Must be registered with competent authority

Moreover there are certain exceptions to the eligibility where VAT Refund scheme would not be applicable:

·        Foreign businesses providing supplies in UAE (excluding where recipient is liable to pay VAT under reverse charge)

·        Input tax levied on the goods or services is not recoverable in UAE VAT legislation

·        International business not providing VAT Refunds to UAE entities

·        Overseas business is a non-resident or a foreign government entity

·        Total amount of VAT Refund is below AED 2000

·        Time of submission for VAT application Refunds

·        Each Refund claim should be a different calendar year, for example: refund claim for year 2019 can be filed after 1 March 2020

·        Businesses can file refund application 6 months from the date businesses can first make a claim

Furthermore if you have any doubt regarding VAT policies in UAE, better to consult any trusted vat consultants in Dubai for clarifications, since it’s will be helpful for the organizations in making accurate claims of ITC and VAT returns.

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Know About the Reverse Charge Mechanism under VAT in Dubai

The concept of Reverse Charging Vat was created to simplify trade within single market.  This reduces the necessity of VAT registration for sellers in the country where the supply is made.  In easier words "Reverse Charge" eliminates the responsibility of reporting a VAT transaction from the seller to the buyer of a good or service.  In standard business scenario, the supplier provides the goods and obtains the VAT on favor of the customers, that's later on paid to the government, but in reverse charge mechanism buyer or end consumer pays the tax directly to government.  

Why is reverse charge required?

Tracking the transactions made by business from outside of UAE and ensuring VAT compliance was tedious for FTA. Hence, recipients who are citizens of UAE were made to pay VAT on reverse charge basis. This mechanism is primarily used for cross-border transactions, hereby relieving non-resident suppliers from the burden of registration and accounting for VAT in their consumers’ location.

When is reverse charge required?

When there's an import of goods/services from other GCC and non-GCC countries by any supplier of other country having or not having a business in the UAE.

Buying goods from a designated zone

Stocks of diamond and gold

Buying gold and diamonds for further production/manufacture or resale  

Stocks of hydrocarbons for resale by a registered supplier to a registered recipient

Stocks of crude/refined oil by a registered supplier to a registered recipient.

Stocks of processed/unprocessed natural gas by a registered supplier to a registered recipient

Production and distribution of any form of energy supplied by a registered supplier to a registered recipient

It’s important to note that reverse charge system is not suitable for export of gold and diamonds, stocks of investment precious metals (gold or platinum with purity greater than 99% suitable for trading in global markets), and export of products having gold or diamonds as main material.

Whenever a transaction is obligated for Reverse Charge, the buyers submits both their purchase (input VAT) and supplier’s sale (output VAT) in their VAT return.  Both the declarations negate each other from a cash payment point; however the authorities will have complete tracking of the transactions. Most sales between member states is subjected to a reverse charge, also there will be instances where a domestic reverse charge rule exists within certain member states.

What is the eligibility?

The buyer of goods or services must be registered for VAT in UAE.

Proper records of supplies that incur reverse charge to be maintained by every registered business owner

Invoices, receipt vouchers, and refund vouchers must specify whether payable tax payable for specific transaction is via reverse charge

Sarah Ferguson is a professional tax consultant in Dubai having over twenty years of accounts experience in accounting practice, manufacturing and service industries. Her emphasis is on good service rather than prices. Sarah wants to provide an excellent service geared to the individual needs of her clients.

Get more details visit www.taxconsultancy.ae!

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VAT Penalty Policies in UAE

Value Added Tax (VAT) Penalty policies have been administered by the UAE cabinet that shall be imposable on businesses for any violation found by the business organization in following the tax laws. Any person/business is obliged to follow the laws related to VAT stipulated by the law. The failures of any obligations lead to monetary or non-monetary fines or penalties incurred on the person/business. The monetary penalties shall fall in varied ranges depending on the violations. It is to be noted that no penalty shall amount to more than triple the value of the questionable transaction and will be no less than AED 500. The laws state the documentation necessary for the supply of goods, procedures related to goods transfer, generation of tax invoice, etc. Here we enlist the conditions of violations related to VAT where the penalties shall be imposed. The penalties are also mentioned along with the violations.

Penalties related to VAT along with fine:

1.   If a person/business fails to include and display the taxes along with the price, which is to display prices inclusive of tax; in such cases penalties fined is AED 15,000.

2.   Business/person failing to notify Authority of tax application based on the margin: in such cases, the penalty will be AED 2,500 each time of the failure.

3.   Any failures to abide by the procedures related to goods’ transfer in specific zones. In this condition, the penalty will be greater than AED 50,000 or 50% of the tax, if any, which has not been paid on goods and led to the violation.

4.   While making any supply, a tax invoice or an alternate document must be issued. Failing which may lead to a penalty of AED 5,000 for each missing invoice.

5.   A tax credit note, or an alternative document must be issued. Any discrepancies in this are a violation of VAT and shall be fined AED 5,000 for each missing note.

6.   There are certain procedures a business/person must comply with regarding the electronic tax invoice issuance or the issuance of electronic tax credit notes. Failing any such procedure or any misconduct found is a violation. This is fined AED 5,000 for any incorrectly produced document.

Some other penalties and violations can include:

1.   If the taxable person fails to disclose errors voluntarily on the Tax Assessment, Tax Return or Refund Application before being notified; he/she will be subject to a Tax Audit.

2.   A person performing a tax evasion offense; wherein a person indulges in a deliberate omission or act with an intention of violating the provisions of the legislation issued taxes.

3.   Any person failing to produce authentic data, records, files, tax receipts, on being asked for them is considered violating the laws.

4.   Any registrant failing to apply for deregistration within the specific timeframe by the Tax law.

The above stated are penalty policies related to VAT applicable in the United Arab Emirates (UAE). These policies have been identified and authorized by the Decree-law. The first and second mentioned policies relate to Article 38 and Article 43 of the Decree-law. Cabinet shall issue penalties as per the stipulated policies for any offense or violation of the law being advocated.

OBJECTING THE PENALTIES:

However, a person holds all rights to object the penalties imposed on him/her within 20 business days from the date of generation of the penalty. Such an application must be presented with valid reasons within the specific time limit for reconsideration from the person and the authority is obligated to inform the result within 5 business days to the applicant after the application is received.

SF Tax Consultancy are reliable providers of Accounts and Tax related services for nearly 15 years. Having offices in major locales of UK, we’ve successfully served a diverse range of business ventures; Start-Ups, Sole Traders, Limited Companies and Landlords.

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Important Facts About Tourist VAT Refund In UAE?

Imposing value-added tax (VAT) at a standard rate of 5% by the UAE government was a landmark decision to diversify the country's economy away from oil.

Moreover, tourists visiting emirates are eligible for claiming back 85 per cent of applied VAT on goods purchased by them. More than 4,500 companies registered for this scheme during the initial stage which has now reached up to a mark of 300,000+ till now!

This decision of the UAE Federal Tax Authority (FAT) is a reflection of their willingness to contribute to increasing tourism & encourage domestic trade for enacting the country as a prime central trading hub in the region.

The refund scheme provides a benefit of claiming a tax refund within 90 days of purchase which can be up to Dh10,000 in cash while no-limits are there on credit card refunds.

It's the highest cash refund on taxation provided by any of the remaining countries across the globe till now.  

A tourist of 18 years & above, having intended to leave UAE within 3 months of purchasing goods is eligible for these refunds.

But tourists will only get refunds if purchased goods are from companies registered under this scheme.

Goods like motor vehicles, boats or aircraft do not fall under this scheme.  Also, goods fully or partly consumed while stay in UAE is not eligible for refunds.

Tourists need to provide a valid passport for proving their non-citizenship in participating stores.  

Once the store will log their provided information in an online system, they will be issued a tax-free tag on the purchase receipts with an instant created digital form.

These free tags will be charged Dh4.50 charge for each tax-free tag presented at the point of refund.  

The tax refund can be claimed only at the point of exit; Dubai, Abu Dhabi and Sharjah Airports in current time.

The minimum spends of Dh250 for goods to be eligible for the scheme.

The remaining 15 per cent of the transaction is paid as commission to the tax refund agency, Planet which currently operates in 58 countries across the world.

Are you looking for reliable vat consultants in Dubai?  Look no further!

We have been providers of Accounts and Tax related services for nearly 15 years. Having offices in major locales of UK, we’ve successfully served a diverse range of business ventures; Start-Ups, Sole Traders, Limited Companies and Landlords.

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Know How Of Input Tax Recovery Process In UAE

An input tax is the amount paid by any personal on every purchases made or inward supplies. The major feature of VAT in UAE is recovery of tax paid on inputs where a person can reduce the amount of input tax likely for recovery from tax payable amount & pay the balance amount as tax.

It's a kind of guarantee that tax is only paid to value added at each stage of every supply chain.  This eligible amount of recovery in input tax also plays important role in operating expenses and the cash flow under VAT. As per leading vat consultancy in Dubai, formula for input tax recovery is:

Tax payable = Output tax payable - Input tax recoverable

Any registered business can recover the VAT paid in purchasing of goods & services under certain applicable conditions:

Only Taxable Supplies Are Eligible: Only taxable supplies (i.e. supplies made at 5% taxation) can be claimed for inputs not exempt supplies.

Tax Invoice Is Mandatory: The claim of input tax recovery can be done only if recipient ensures that tax Invoice pertaining to supply is present in the records.

Payment of Consideration: The recipient should be ready to pay or agree for payment of consideration for supplies made that too within 6 months after the agreed date of payments.

VAT paid on most business expenses can be recovered as input tax, but taxpayers must know to correctly distinguish between recoverable and irrecoverable input tax to claim and pay right amount of tax. Any kind of errors can lead to tax penalties.

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Difference between Commercial Invoice and Tax Invoice

The eminent arrival of VAT has bought a confusion of difference between commercial invoice & tax invoice for some professional tax consultancy services provider which actually is quiet strange.  But not to worry, here’s a brief about variations in both commercial & tax invoices:

A commercial invoice is a bill of sale provided from seller's end. It include details about goods sold, type of goods sold, quantity and price of each good and terms of sale. You can understand it as imperative documentation to determine true value of imported goods, assessment of duties and taxes in customs. Any commercial invoice must identify buyer and seller (in addition to other information), and clearly indicate details:

Date and terms,

Quantity, weight and volume,

Packaging type,

Complete description,

Unit and total value,

Applicable charges (insurance, shipping or other)

A tax invoice is a supplier issued document to display; amount charged for goods or services & base amount of goods and services on which tax is payable. It should be issued by a registered dealer or service tax provider, TIN (VAT) dealer, manufacturer, distributors; while commercial invoice is to be raised by any seller.

Conclusion:

The term “Commercial” is only used to distinguish a invoice from other types; Excise or Tax Invoice etc. For example: Someone using Excise Invoice only for their purposes or if someone is using only a VAT Invoice (i.e. Tax invoice) so it's not a commercial invoice? Yes both are commercial invoices.

But, as mentioned above to distinguish invoice from Excise or Tax invoice on the basis of which one can avail VAT (Input tax) Credit, and other invoices which cannot help to avail such credits, the term ‘commercial invoice’ is used.

Blog Source URL: https://www.taxconsultancy.ae/difference-between-commercial-invoice-and-tax-invoice/

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Impacts of VAT on Residents & Businesses in UAE

Imposing VAT & Excise Taxation in UAE and other GCC nations has been a futuristic move by the government, since all these nations were once tax-free. Primitive reasons behind this decision were; global reduction in oil prices and dependency on hydrocarbons. No matter what the logic maybe, collected revenue would be used for public service; hospitals, schools and universities, defense and other important aspects of daily life.

Taking a deeper dive onto benefits of Value Added Tax (VAT) requires complete know how about it.  So let’s discuss it further:

What Is VAT?

VAT is a form of indirect tax applied upon consumable goods and services. It’s levied by registered businesses involved in supplying goods and services along with importation of goods. VAT is imposed on every stage of supply chain and collected by businesses on Government's behalf. To clarify more, VAT is ultimately paid by end consumers for using goods & services.

The standard VAT has been applied on most business products & services. However vital ones; healthcare, education, finance and insurance have been either charge 0% or been excluded completely. However it’s important to note that suppliers of 0% goods or services can reclaim VAT they’ve paid on inputs into their business. On the other hand, suppliers of excluded goods and services can’t reclaim any VAT they’ve paid on inputs despite being registered for VAT (Registration is not required for this category)

Impact on Business

Raise in Costing’s: The implementation of new VAT laws has bounded businesses to make some real-necessary admin changes. For instance, consultation from experts for vat registration in Dubai is now kind of mandatory otherwise one may suffer with loss due to hefty penalties from authorities. The tasks of VAT collection, reporting on quarterly basis, transition of details in account books will be needing specialists/experts which's expansive from beginning particularly for smaller labor-based businesses.  

Change in Business Structure: For personals handling more than one business entities offering same range of products may get taxed twice. In order to avoid this situation, you’ll need to bring different entities together with significant restructuring to avoid VAT leakage.

Accountability Increase: Once becoming a VAT-registered entity means you’re legally bounded to prepare and keep a range of business records; annual accounts, ledgers, purchase books, and invoices issued and received at least for five years minimum, keep it updated, ensuring validity, and supply during business audit.

Uncertainty for future: VAT will increase in future is what concerns a number of UAE companies. Not just 5% rate but exempt categories will be remaining exempt, 0% goods may also witness increase. These possibility assumptions create uncertainty for both businesses and consumers, who will remain to keep worrying about increased costs passed on to them.

Impact on Residents:

Improved Infrastructure: With significant rise in government revenues will not only stabilize economy and GDP (Gross Domestic Production) but improve country’s infrastructure which is helpful in attracting global investments also.

Transparency: The cumbersome to implement VAT will bring more transparency in businesses and economy. Furthermore, a new database would be created for taking informed decisions.

Increased Efficiency: Initially VAT may discourage businesses, but there are certain long term advantages awaiting. One of them is increased efficiency of businesses resulting in long-term gain.

Advisory Opportunities: There will be a rise in opportunities for professionals and experts specialized in VAT as business houses will hire professional vat consultancy services in Dubai or may think to outsource its function to comply with VAT laws.

To conclude, VAT seems to pose some necessary administrative and financial challenges but overwhelming part is getting your business more efficient in long run whereas citizens will see rise in job opportunities due infrastructural developments and boosted economy.

Get more information about VAT Consultants Dubai, Visit now!

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How to Choose a Tax Consultant in Dubai?

The financial vertical of any business is one of the most complex areas. It involves aspects; Tax payments and deductions which require a clear understanding to help in running the business smoothly. An experienced tax consultant can help you handle the finances wisely.

Here are some pro-tips helpful in choosing a tax consultant-

Clarity about Type of Tax Service Required

There are various types of services offered by a single consultant, but all of them will not be needed for your business. Therefore it's mandatory to opt for the one which is suitable as per your needs. Prefer a consultant who can work in full sync with your business requirement and try to develop a clear understanding sooner.

Choose Only the Firms Working Whole Year

To face any type of possible tax-related issues, look for an agency having good experience of international tax & accounting services at any given time. They will be doing a detailed study for your present financial status and prepare a report about possibilities of saving taxes. Neither of tax consultants will be able to provide estimation of savings you can be making in first meeting.

Validate License of Tax Consultancy

Always select an international tax agency having a valid licensed accredited from a government or council. Any based on the size of your refund especially VAT assistance providers must have a valid license essentially, otherwise they are considered frauds.

Consultant Should Be Questioning

Always choose a tax consultant having deep curiosity in financial aspect of your business since the first meet. Avoid hiring anyone whom you need to ask questions rather than getting solutions. Choose a tax consultant asking more about your long-term financial goals, since tax professional ensure maximum tax savings after a detailed study of business.

Great Education & Experience Is Must

Both education & experience is a must for any tax consultant. For example any person having a degree from renowned a university and experience of working from leading tax companies in Dubai or globally will be an aid.

Only Consultation Will Not Suffice

Always opt for a tax consultancy firm preparing your taxes and offers advice at the same time. Generally a tax preparer don’t have clarity of advising on how to prepare tax returns, so choose any tax consultancy services having both accuracy and skills at same moment.

Don’t Forget To Compare Fees

The fees for filling tax return are variable in every tax companies of Dubai which can be on hourly or daily basis. Therefore choose those who offer you fees based on the amount of your refunds or promise to give you a bigger refund in comparison to others.

For more details, visit www.taxconsultancy.ae

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How To Differentiate Between Excise Tax and VAT in UAE?

The introduction of Excise Duty & VAT happened almost the same time (i.e. 2017-18) in UAE. Both are a form of indirect taxation levied on selected goods & services for various purposes which leads to additional revenue for the government in UAE.

It can be a bit-difficult for people to clearly understand the difference between these two terms and they usually require to approach a reliable tax consultancy services provider for assistance in registration for these prevailing tax systems in UAE.

Let us ease you a little by explaining the difference between excise tax and vat services in detail:

What are Vat & Excise taxes?

VAT: A value added tax (VAT) is an indirect tax imposed on goods consumption and services in UAE. This tax was imposed for a purpose of creating a new source of income for the government which is utilizable for providing high-quality services to citizens like public transports. All major goods and services in UAE are chargeable under VAT excluding; financial services, residential buildings, and bare lands as per the norms of VAT registration in Dubai.

Excise Tax: Another form indirect tax imposed on goods harmful for human health or environment. The sole purpose of Excise Tax is reducing the consumption of unhealthy goods while increasing the government's revenue that can be utilized for citizen welfare.Certain services and goods such as carbonated drinks (aerated drinks excluding unflavored water), energy drinks (i.e. drinks containing caffeine, taurine, ginseng, and guarana) and Tobacco (products listed in schedule 24 of GCC Common Customs Tariff) fall under Excise taxation.

Percentage of Excise & VAT

Excise Tax:  Carbonated Drinks- 50%, whereas Energy Drinks & Tobacco have 100% tax imposed on them.

VAT: Standard rate of VAT is 5% in UAE excluding international transportation and export/ import of goods or services.

How to register your business?

The business houses involved activities like; imports of goods or production of goods for consumption in UAE markets or stocking taxable goods must register for Excise Tax.

Moreover VAT is applied on all tax registered businesses in UAE excluding some designated or free zones which are considered tax free.  

Getting Refunds

The applicability of Excise tax is done only once in a supply chain, but businesses subjected to taxation and purchasing taxable goods remains ineligible for getting a refund. However, if a taxable good is used to again produce a "new" taxable good or same is exported outside UAE are eligible for refunds too.  

VAT refund is applicable only if a business or individual have more tax on purchases than the output tax collected. Even tourists visiting UAE can claim a refund on the VAT paid during the trip.

VAT Consultants Dubai

Introduction of Excise & VAT taxes added newer responsibilities for businesses. Tax Consultancy is leading Service Tax Consultants in Dubai having assisted various businesses in top-notch tax consultancy services in UAE.

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Costly Errors to Avoid for the Businesses When Filing Their VAT Returns

Filing a VAT return is a complex process. There are numerous intricacies and quirks that catch business owners out. As it is a daunting process, mistakes with VAT filing are all-too-common. It can be a huge headache for the businesses, as they have to fulfil additional payments as penalties/fines.

With the complications of the VAT laws, it is quite understandable that errors in filing VAT returns can prove too expensive for the business owners both in terms of paying the fine and for triggering the VAT investigation.

Poor Record-Keeping –

When it comes to avoiding VAT mistakes, poor record-keeping is a big issue that holds importance. This is because one can’t prepare a VAT return without maintaining proper records. Thus, to avoid any kind of problems, it is must to maintain a proper record of sales & purchase invoices of the business. It’s always better to spend the money on a professional accounting firm in Dubai for maintaining proper records rather than paying tax penalties later.

Incomplete Invoices –

Maintaining correct details on invoices is another vital thing to avoid costly mistakes. Make sure that all the invoice details like VAT registration number (TRN), business name, contact details, invoice date, description of services/goods are correctly entered and the whole invoice is complete as per the UAE VAT laws.

Lack of Evidence for VAT Reclaims –

As per the UAE VAT laws, the general rule is “No VAT receipt, No claim!” Thus, it is important to maintain proper evidences of VAT to avoid losing an unnecessary amount of money.

Combining Business & Personal Expenses –

There is always a fine line between business-related expenses and personal expenses. Presenting the bills of personal expenses & claiming a refund on it is considered as an infringement of UAE VAT laws. Therefore, while filing the VAT return & claiming the refund, it is important to present the bills used only for the business purposes.

Claiming Input VAT on Exempt Supplies –

This is another important point to consider for the businesses that are supplying both taxable and exempted supplies. There are many situations where exemptions or partial exemptions exist. In these instances, it is really good to get professional advice from VAT consultants in UAE.

It is absolutely true, VAT is certainly not the simplest thing in the world to deal with, and this often leads to genuine mistakes made by businesses when filing.

Thus, it is advisable to get specialist assistance & advice on major and complex VAT issues. Considering their second opinion will keep you aware of these common mistakes, making it easier to get the right information together at the time of VAT filing.

Get more information about VAT Consultants Dubai, please visit now!

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Steps to Avoid VAT Penalties in UAE & Comply with New Regulations

VAT (Value Added Tax) has been implemented in the UAE in the year 2018. Right after its implementation, it has become crucial for the UAE businesses to prepare themselves towards this new taxation system and be “VAT Ready” to avoid penalties related to VAT.

Before knowing the ways to avoid VAT penalties, it is must to know what exactly this term means. VAT penalty is defined as imposing monetary or non-monetary (if any) obligation on the person in addition to his normal obligations. This forces the person to act in accordance with the legal requirements to avoid the consequences of non-compliance. Now let’s know about the steps to avoid penalties which could be as high as AED 20,000. 

Registration of VAT:

VAT registration in Dubai is necessary for all those companies that offer taxable goods & services. Companies that having annual revenue of AED 375,000 must register within 30 days as per the period prescribed by the Federal Tax Authority (FTA).

Maintaining All Accounting & Bookkeeping Records:

As a basic guideline for proper management & control of the business operations in the UAE, it is compulsory to maintain proper records regularly. This can be best done by hiring accounting & bookkeeping firm in Dubai. Keeping a strong record of all the costs, business income and other associated VAT charges is the only means of evidence to be presented at the time of inspection by FTA.

VAT Collection:

Another vital step to comply with the new VAT regulations is to collect VAT by the customers who are purchasing goods and services from your company. a value-added tax employ the credit-invoice method. Under this method, businesses are taxed on their sales at each stage of production but obtain credits for the taxes they paid on inputs.

Know About the Zero Rates And Exempt Suppliers:

Some businesses have been exempted from tax by the FTA. For the Zero rated supplier VAT is still taxable on the goods being supplied but at the rate of zero. Such as industries include jewellery, real estate developers, clinics and hospitals, airlines, & schools.

As there are many things to know about the VAT, hiring professional VAT consultants in Dubai will be the best business decision to make. As they have a good knowledge about this field & understand its applicability to ensure that you are on the right path. 

Get more details, please visit VAT Registration Dubai!