Implementation and impact of VAT

The UAE will implement five per cent value-added tax (VAT) from 7am on January 1, 2018, with a few goods and services zero-rated and exempted as part of the GCC-wide agreement.

Being an indirect tax on consumers, VAT will be applicable on most daily usage goods and services that residents consume, helping the government to boost its coffers to further improve infrastructure and offer better facilities.
Burning questions
What sectors will be zero-rated?

VAT will be charged at 0% in respect of the following main categories of supplies:

. Exports of goods and services to outside the GCC

. International transportation, and related supplies

. Supplies of certain sea, air and land means of transportation (such as aircraft and ships)

. Certain investment-grade precious metals (e.g., gold, silver, of 99% purity)

. Newly-constructed residential properties, that are supplied for the first time within three years of their construction

. Supply of certain education services, and supply of relevant goods and services

. Supply of certain healthcare services, and supply of relevant goods and services
What sectors will be exempt?

The following categories of supplies will be exempt from VAT:

. The supply of some financial services (clarified in legislation)
. Residential properties
. Bare land
. Local passenger transport
What are the cases that would lead to penalties?

Penalties will be imposed for non-compliance. Examples of actions and omissions that may give raise to penalties include:

. A person failing to register when required to do so
. A person failing to submit a tax return or make a payment within the required period
. A person failing to keep the records required under the issued tax legislation
. Tax evasion offences where a person performs a deliberate act or omission with the intention of violating the provisions of the issued tax legislation
Source: Ministry of Finance, Federal Tax Authority

New Rules of VAT has been approved.


Vice-President and Prime Minister of the UAE and Ruler of Dubai, has approved the executive regulations of Federal Law No.8 of 2017 on Value Added Tax (VAT)

The bylaws govern the implementation of VAT, which will come into effect from January 2018.

The regulations define VAT as the 5 per cent tax imposed on the import and supply of goods and services at each stage of production and distribution, including what is a deemed supply, with the exception of specific supplies subject to the zero rate and what is exempted as specified in the law.
The regulations tackle the subject of registration, such as mandatory and voluntary registration, related parties, conditions to be met to register tax groups and appointing a representative member, deregistration, exception from registration, registration on law coming into effect and obligations to be met before deregistration.

As our VAT consultancy in Dubai is the best one that any business can approach, we ensure the clients will get the best services when it comes to getting the services related to VAT and tax.

Our namassociates  team takes care of VAT, Excise Tax, international taxation, indirect taxes, guiding about local tax laws, and compliance of tax and VAT regulations in different countries.

Our experienced VAT consultant in UAE will be able to make sure that the needs and the requirements of the clients are met in the best possible way

We offer following services for hassle free management of your tax issues:

  • VAT Consultancy
  • Accounts for VAT
  • VAT report preparation
  • Setting up accounting records and maintaining them
  • Tax Planning
  • Filing Returns with VAT authorities

VAT affects on UAE retail sector

vat in dubai
The appliances sector, especially consumer electronics, will be hardest hit by the introduction of value-added tax (VAT), according to Euromonitor International.

As for other segments of the retail sector, the UAE’s first major tax will have varying degrees of impact, says Nikola Kosutic, Research Manager for Euromonitor International Middle East.

As our VAT advisory in Dubai is the best one that any business can approach, we ensure the clients will get the best services when it comes to getting the services related to VAT and tax.

Our namassociates team takes care of VAT, Excise Tax, international taxation, indirect taxes, guiding about local tax laws, and compliance with tax and VAT regulations in different countries.

Our experienced VAT consultant in UAE will be able to make sure that the needs and the requirements of the clients are met in the best possible way

We offer following services for the hassle-free management of your tax issues:

  • VAT Consultancy
  • Accounts for VAT
  • VAT report preparation
  • Setting up accounting records and maintaining them
  • Tax Planning
  • Filing Returns with VAT authorities

VAT on gold jewellery will be on the entire piece

VAT consultants in UAE

The VAT (value-added tax) on gold jewelry will likely apply to the entire piece, which effectively means an additional payout of Dh7-Dh8 a gram at today’s prices, according to industry sources. But on gold bars, deemed as investible assets, no such tax will apply. (There will also be no duty on loose diamonds.)

 The decision to include gold jewelry under VAT will be spelled out in the Executive Regulation governing the application of value-added tax in the UAE. A draft version of the document was released yesterday. The Regulation defines VAT as the 5 percent tax imposed on the import and supply of goods and services at each stage of production and distribution, including that is a “deemed supply”. The only exceptions are specific supplies subject to the zero rate and those exempt as specified in the Decree Law.

As our VAT consultancy in Dubai is the best one that any business can approach, we ensure the clients will get the best services when it comes to getting the services related to VAT and tax.

Our namassociates team takes care of VAT, Excise Tax, international taxation, indirect taxes, guiding local tax laws, and compliance with tax and VAT regulations in different countries.

Our experienced VAT consultant in UAE will be able to make sure that the needs and the requirements of the clients are met in the best possible way

We offer following services for the hassle-free management of your tax issues:

  • VAT Consultancy
  • Accounts for VAT
  • VAT report preparation
  • Setting up accounting records and maintaining them
  • Tax Planning
  • Filing Returns with VAT authorities

 

specific deadlines for owners of commercial properties.

As our VAT consultants in Dubai is the best one that any business can approach, we ensure the clients will get the best services when it comes to getting the services related to VAT and tax.

Our namassociates  team takes care of VAT, Excise Tax, international taxation, indirect taxes, guiding about local tax laws, and compliance of tax and VAT regulations in different countries.

Our experienced VAT consultant in UAE will be able to make sure that the needs and the requirements of the clients are met in the best possible way

We offer following services for hassle free management of your tax issues:

  • VAT Consultancy
  • Accounts for VAT
  • VAT report preparation
  • Setting up accounting records and maintaining them
  • Tax Planning
  • Filing Returns with VAT authorities

Owners of commercial properties in the UAE will need to keep in mind two deadlines related to the upcoming VAT.

 One, they will need to register with the Federal Tax Authority if the sales or rental proceeds exceeded Dh375,000 in the previous 12 months. And, two, if the owners believe they are likely to generate more than Dh375,000 over the next 30 days.

These commercial properties could be used for offices, retail, hotel, F&B (food and beverage), or any such activity, and which will be assigned a 5 per cent VAT. But land sales for the purpose of building a commercial property is exempt from VAT’s ambit

All food set to be taxed under VAT in UAE

VAT consultants in Dubai
All types of food in the UAE, including staples such as bread and rice, will be taxed from January 1, 2018, the Federal Tax Authority (FTA) announced

The public has long-expected certain food staples to be zero-rated, or exempt, from the 5 percent tax increase.

Zero-rated refers to the preferential status the government gives some essential goods and services, meaning their sale is not taxed.

Our namassociates team takes care of VAT, Excise Tax, international taxation, indirect taxes, guiding local tax laws, and compliance with tax and VAT regulations in different countries.

Our experienced VAT consultant in UAE will be able to make sure that the needs and the requirements of the clients are met in the best possible way

We offer following services for the hassle-free management of your tax issues:

  • VAT Consultancy
  • Accounts for VAT
  • VAT report preparation
  • Setting up accounting records and maintaining them
  • Tax Planning
  • Filing Returns with VAT authorities

 

MoF is still working on VAT in UAE

VAT consultants in UAE
Implementation of VAT  across the UAE from January 1, 2018, at a rate of 5 percent.

Implementation of VAT comes as GCC governments grapple with lower oil prices, which are pressuring the governments’ revenues and hence, spending. Global organizations including the International Monetary Fund have long urged regional governments to implement tax policies as a way to diversifying their revenue streams and developing their economies.

VAT will follow the rollout of excise tax in the UAE that began from October 1, and that impacted prices of tobacco products, carbonated drinks, and energy drinks.

As our VAT consultancy in Dubai is the best one that any business can approach, we ensure the clients will get the best services when it comes to getting the services related to VAT and tax.

Our namassociates team takes care of VAT, Excise Tax, international taxation, indirect taxes, guiding about local tax laws, and compliance with tax and VAT regulations in different countries.

Our experienced VAT consultant in UAE will be able to make sure that the needs and the requirements of the clients are met in the best possible way

We offer following services for the hassle-free management of your tax issues:

  • VAT Consultancy
  • Accounts for VAT
  • VAT report preparation
  • Setting up accounting records and maintaining them
  • Tax Planning
  • Filing Returns with VAT authorities

IMPORTANCE OF AUDITING TO COMPANIES

auditors in dubai

Auditing is a method for assessing the inefficiency of an organization’s internal controls. Holding a viable arrangement of internal controls is fundamental for The Company’s aim, increasing reliable budgetary writing about its operations, blocking extortion and misuse of its benefits, and lessening its cost of capital.

Why do we need an auditor?

An effective auditing system is key for any organization since it encourages seeking after and achieving its few corporate purposes. The corporate procedure needs a few types of internal control to simplify supervision and watching, avoid and recognize the irregular exchange, measure the corporate executive, keep up adequate business records and to advance efficiency. The Auditors survey the plan of interior controls and casually propose improvements, and all archives and irregularities to empower facilitate an examination by the administration if there is to be found.

Audit firms in Dubai serve an essential part for organizations in fraud prevention.  Frequent analysis of an organization’s operations and protecting a thorough system of internal controls can forestall and recognize endless types of fraud and other bookkeeping irregularities. Audit professionals can assist in the outline and change of internal control system with the motivation behind which incorporates, in addition to other things, fraud prevention. One of the imperative parts of anticipation can be discouragement, and if a business is known to have a dynamic and diligent auditing system set up, by repute alone it might keep a worker or merchant from attempting a plan to defraud the company.

penalty for VAT evaders

VAT consultants in dubai

The UAE will close down a business for 72 hours and impose a severe financial penalty for VAT evasion, according to tax consultants who attended a VAT briefing by the Ministry of Finance

As our VAT  consultants in Dubai is the best one that any business can approach, we ensure the clients will get the best services when it comes to getting the services related to VAT and tax.

Our namassociates team takes care of VAT, Excise Tax, international taxation, indirect taxes, guiding about local tax laws, and compliance of tax and VAT regulations in different countries.

Our experienced VAT consultant in UAE will be able to make sure that the needs and the requirements of the clients are met in the best possible way

We offer following services for the hassle-free management of your tax issues:

  • VAT Consultancy
  • Accounts for VAT
  • VAT report preparation
  • Setting up accounting records and maintaining them
  • Tax Planning
  • Filing Returns with VAT authorities

 

Online Registration For VAT in UAE

VAT consultant in dubai
The UAE’s Federal Tax Authority (FTA) announced that online Registration for VAT in UAE is now open through the Authority’s website.Businesses exceeding  Dh375,000 annual income  must be applied for the registration of VAT in UAE

The FTA also stated that Businesses with taxable supplies and imports that are less than that mandatory minimum but exceeds the voluntary registration limit of Dh187,500 annually can optionally register for VAT.

FTA urged businesses with an annual turnover of over Dh150 million to register before October 31, 2017. All businesses with an annual turnover exceeding Dh10 million should register before November 30, 2017.

 NamAssociates is here to help your business to register for the first time, our experienced VAT consultant in Dubai will be able to provide the best services for VAT filing and Registration of VAT in UAE. 

The FTA also stated that Businesses with taxable supplies and imports that are less than that mandatory minimum but exceeds the voluntary registration limit of Dh187,500 annually can optionally register for VAT.

FTA urged businesses with an annual turnover of over Dh150 million to register before October 31, 2017. All businesses with an annual turnover exceeding Dh10 million should register before November 30, 2017.

Namassociates is here to help your business to register for the first time, our experienced VAT consultant in Dubai will be able to provide the best services for VAT filing and Registration of VAT in UAE.