Tag: VAT consultants in dubai (page 1 of 4)

Tourists to get refund on VAT from November

All non-UAE residents above 18 years old will be eligible for tax-free shopping.

The UAE looks set to put an up-to-date system in place for VAT refund to millions of tourists from November. The VAT refund system will be initially available at Abu Dhabi, Dubai and Sharjah airports and by year-end, it will be extended to 12 exit points, including the land borders and ports, it is learnt.

Federal Tax Authority (FTA) and Tourist Refund Scheme operator Planet have issued guidelines setting a minimum limit of Dh250 to claim VAT refund.

Planet said all non-UAE residents above 18 years old will be eligible for tax-free shopping. According to its website, tourists will be able to validate their tax-free forms at Dubai International, Abu Dhabi and Sharjah airports until December 16 whereafter the system will be in place at nine more locations – Al Maktoum airport, Abu Dhabi Port Zayed, Al Ain Airport, Al Ain land border, Fujairah Airport, Ras Al Khaimah Airport, Al Ghuwaifat land border, Hatta land border and Dubai Mina Rashid Harbour.

The operator further said tourists could be asked to present their goods to confirm they are unused. It said only the owner of the passport under which the tax free forms are registered will be entitled to collect the refund.

Anurag Chaturvedi, managing partner, Chartered House, tourists will receive 85 per cent of the total VAT amount after deduction of an administration fee of Dh4.80 per tax-free form.

Citing an example, he said if a tourist buys electronic goods worth Dh210 from a store and spend another Dh315 on buying souvenirs from another store, he can claim tax refund of Dh15 on purchases of Dh315 and not against electronics purchase of Dh210 as it’s below the minimum spend limit set by the authority.

“If the tourist spend Dh315 in the UAE, he/she will get refund of Dh7.95,” he said.

Thais Cunha, associate, Aurifer Middle East Tax, said tourists will be able to receive VAT refund for their purchases made from registered retailers.

“Retailer will charge VAT and also ensure that the customer has all the appropriate documentation to reclaim it,” Cunha said.

According to Planet, the tourists’ tax free tag needs to be validated within 90 days of the purchase. If receipts are not validated within 90 days, the tax free tag expires and VAT cannot be claimed.

An invitation sent out last week to retailers and tax consultancies across the UAE by the FTA and the Dubai Chamber of Commerce and Industry to brief them about how to register for the tourist refund scheme revealed that Tourist Refund Scheme will be rolled out in November 2018.

“Tourist can take goods and tagged receipt to the airport, seaport or border crossing. He will be required to visit Planet’s validation point (through self-service kiosks) to validate the invoice. Once validated, the tourist will choose a refund method – cash or credit card,” Chaturvedi said.

Joy Alukkas, chairman and managing director, Joyalukkas Group, also welcomed the step, saying Dubai is known as the City of Gold and this means the best quality and designs at the best possible prices.

VAT refund will help Dubai maintain its position with tourists since one of the biggest shopping attractions for them in Dubai is gold and jewellery. We warmly welcome this strategic step and are sure it will have a very positive impact for both the industry and the tourists visiting UAE,” Alukkas added.

Deepak Babani, executive vice-chairman of Eros Group, welcomed this initiative by the FTA, saying it’s a very a simple and friendly procedure for the tourists.

“It is a very positive step and procedures are simple. We were wondering about how much deduction will be for the tourists refund, but we’re happy that it’s just 15 per cent. It should definitely improve sales locally,” Babani said.

Anil Dhanak, managing director, Kanz Jewels, said tourists VAT refund will essentially put Dubai’s grip on the title ‘City of Gold’ firmly in place.

” Five per cent increase on the finished gold products had dampened demand for jewellery but we expect the tourists who come to buy gold in Dubai now will find a significant price difference between their home country and here as it had been previously,” Dhanak added.

According to a Dubai Chamber of Commerce and Industry study, tourist spending in the UAE is projected to increase from Dh154 billion in 2017 to Dh205.5 billion by 2022. In Dubai alone, a study by Mastercard had estimated visitor spending at Dh104.6 billion last year, a growth of 10 per cent. According to the annual Mastercard Destination Cities Index, Dubai outpaced all other cities in visitors’ spending in 2016.

UAE, along with Saudi Arabia, levied five per cent VAT on a host of goods and services from January 1, 2018. Bahrain and other GCC countries will implement VAT as part of GCC framework in 2018-2019.

For more Details visit :   Vat Consultants Dubai

 

Seed Group, WTS Dhruva sign partnership deal

The decision is aimed at supporting UAE businesses in achieving VAT compliance

Seed Group has announced a partnership agreement with a registered VAT and tax advisory firm WTS Dhruva.

The group, a conglomerate of companies, owned and operated by the Private Office of Sheikh Saeed bin Ahmed Al Maktoum, said the decision is aimed at supporting UAE businesses in achieving their VAT compliance, avoiding any risks of errors at any point of the VAT filing process and beyond, as well as offering VAT advisory services and solutions through a customised automated reporting VAT digital compliance tool designed for the GCC.

“Over the last year, WTS Dhruva worked with multinational clients and regulators on challenging tax environments, policies issuance and infrastructures. The firm will have a positive role by supporting businesses come to grips with tax issues,” Hisham Al Gurg, CEO of the Private Office of Sheikh Saeed bin Ahmed Al Maktoum and Seed Group said.

The senior management of the Private Office and Dhruva believe that existence of a specialised tax-focused boutique organisation will change the dynamics of the tax consultancy and compliance support for businesses in the region.

Dinesh Kanabar, CEO and founder of WTS Dhruva, said: “With nearly 300,000 VAT registered companies across the UAE, it is critical that these businesses receive holistic VAT advice.”

Pratik Shah, resident partner and VAT expert, said VAT impacts every aspect of a business from finance, human resources, IT and systems through sales to marketing as the tax is levied at every stage of the supply chain.

“VAT also provides an opportunity for an organisation to redesign certain aspects of the business to mitigate tax exposure at the same time being compliant under the law,” he said.

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FTA to hold tax clinics to promote compliance

The campaign kicks off on August 12 in Ras Al Khaimah

 

 

Ras Al Khaimah: The Federal tax Authority (FTA) has officially launched phase one of its “tax Clinic” initiative, which seeks to maintain direct and constant communication with taxable businesses.

For three months, the campaign will cover all seven emirates to raise tax awareness across the country, urging taxable businesses to register with the Authority and promoting compliance with tax Return requirements and the timely payment of due taxes. Phase one will take place in Ras Al Khaimah over the course of three days – from 7:30 am to 2:30 pm – until August 14, 2018, at the headquarters of Ras Al Khaimah’s Department of Economic Development (RAK-DED) and Ras Al Khaimah Economic Zone (RAKEZ).

 A press statement issued on Monday explained that the “tax Clinic” campaign will be organised as a collaboration between the Federal tax Authority and the departments of economic development and municipalities in all emirates.

 Two teams of analysts and specialists from the FTA’s Registration, tax Returns and taxpayers Services will go on an extensive tour, which includes several meetings and an interactive seminar in each individual emirate, with taxable businesses that have not yet registered in the tax system or that have fallen behind on submitting their tax Returns and settling their due taxes – particularly, small and medium enterprises (SMEs).

The sessions introduced attendees to the procedures, reassuring them that registration for taxes, submitting tax Returns and paying due taxes can all be completed – by the taxpayer or an authorised tax Agent – easily and in a matter of minutes through the e-Services portal on the FTA’s official website.

The Authority noted that the team of specialists will answer questions from business owners to identify and address the reasons that prevented these businesses from registering and submitting tax Returns, in addition to resolving any technical issues they may have faced while using the Authority’s digital portals.

The FTA explained that these meetings are organised in coordination with the departments of economic development and municipalities, who invited taxable businesses to attend and participate in the “tax Clinic”, held at the Customer Service Centres of each emirate’s department of economic development and other relevant authorities.

 The FTA pointed out that in order to expand the scope of beneficiaries of these seminars, the Authority broadcast the meetings live via social media channels.

 The Federal tax Authority called on businesses to attend the “tax Clinic” and benefit from the opportunity to ask any questions they may have, reiterating its commitment to coordinating with the relevant federal and local entities to implement the tax system and boost cooperation. This, in turn, serves to increase awareness among all stakeholders, maintain the utmost transparency and accuracy of information, and effectively address public enquiries to promote compliance with tax laws and prevent violations.

The Authority is intensifying its coordination meetings and awareness programmes to spread knowledge of the principles of the tax system, its executive and supervisory mechanisms, and its implementation, in addition to shedding light on the facilities and services that it provides to help taxpayers easily comply with tax regulations with minimum to no impact on their activities.

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Importance of Charted Accountant

Importance of a Charted Accountants

Chartered Accountants don’t bring together any resources to create any significant economic development, they are resources themselves. Most CAs help the economy indirectly through the following activities:

  1.   Supporting in tax compliance. This includes liaison with government authorities, representing clients in courts, ensuring smooth business operations by taking over the complex tax compliance part. For example, without the CA profession, changes like GST will be very hard to implement.
  2. Financing -Creating opportunities by arranging for business finance. They are helpful in making calculations and convincing banks about the credit worthiness of entrepreneurs. On a large scale too, many CAs working with investment banks help to arrange some key business deals between organisations.
  3. Auditing – which includes the redundant but still necessary function of control procedures. This is to prevent leakages from the economy and stand vigil to check on creation of illegal properties, black money and frauds etc.
  4. Accounting – bringing together professional standards of accounting in changing business environment and to accommodate new developments in business. This ensures comparability, reliability and investor faith, which is good for the economy.
  5. General business support – a lot of other things that Chartered Accountants do can be classified as general support and consulting services. They can do this because of their knowledge about laws, taxes, compliance, financial markets, investments, valuations, banking, regulations etc. It’s too many things, but mostly for supporting roles only.
     

 

VAT Return Filing in the UAE

vat in uae

VAT return filing is that the official tax document to be submitted to the Federal Tax Authority before the due date. VAT return filing needs to be done by the taxable Person at regular intervals depends upon his tax amount. The VAT return should show the details of any output tax due and input tax recoverable at the side of different information as required by the format.

What has to be taken care while filing your VAT return?

While doing the VAT return filing method, details of the taxable Person are going to be pre-populated. Further, details like current VAT return amount, Tax year finish, VAT/Tax period reference range and VAT return submission due date also will be generated automatically.

The following should be taken care of VAT Return filing,

  • All mandatory fields should be completed
  • All amounts should be in AED
  • Use “0” if there are no amounts to be declared.
  • All amounts should be added to the nearest fills

The VAT Return Filing requires every registrant to provide details of taxable supplies.

Details to be summarized under Taxable Supplies include the following;

  1. Advances received.
  2. Supply of goods and services
  3. Goods sold under Profit Margin Scheme
  4. Credit notes issued
  5. Deposits received other than those which are refundable
  6. Sale of Commercial Property

The value of supplies of products and services under Reverse Charge Mechanism is to be declared separately. However, a worth of goods imported into UAE is auto-populated to the extent it had been declared under the taxable Person’s customs registration number.

Adjustments will be created to the of imported goods that are auto-populated in case of omission or mistake in the value when compared with the amounts reported within the customs and import declaration. Further, any import of products that aren’t subject to the standard rate of VAT within the UAE at 5-hitter can even be adjusted as by default all the imports are assumed to be subject to 5 VAT rate.

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Concept of VAT in UAE

VAT I n uae

Businesses and consumers are charged with various forms of taxes and it’s vital to know what we are being taxed for. Value-added Tax (VAT) may be a form of consumption tax that is levied on totally different varieties of product and services provided to consumers. Most of the revenue generated by businesses for the availability of products and services are subject to tax. The tax is fully bared by the final consumers of the goods.

The quality Value-added Tax (VAT) rate is 20 %. But for bound categories of products and service, a reduced VAT rate of 5 % or a zero VAT rate of 0 percent might apply. Domestic fuel, sanitary hygiene product and energy-saving equipment are charged a 5 % VAT rate. Books, food and public transportation qualify for the 0 percent VAT rate. Certain product and services are altogether exempted from the VAT. This category of products and services include education, insurance, medical treatment and fundraising.

After understanding the basics of the VAT, we tend to are certain that you can have additional questions about the topic. Alternative common queries regarding VAT includes the business registration for VAT, VAT payment and refunds and also VAT connected notices, forms and application guidelines. VAT may be a complicated tax matter for most people to know. To read up additional or to get professional facilitate with reference to the VAT, get in touch with your local tax agent or search for more data online.

 

Tips on How to Choose a Tax Agent

tax agent

It’s once again the tax season however you haven’t hired any Tax Agent and now you’re troubled because your company is at risk. What to do in such situation? Who to believe and who not to? Evidently right now there are thousands of queries running in your brain and you’re doubtful regarding the consultant that you’ll hire will be good or bad.

Here you will find the tips which will be help for you while choosing a Tax Agent.

  1. Asking the Right Person

First step is to ask from among friends and relatives who have some experience on this activity. Appearances are deceiving. Friends and relatives who seem prosperous are not essentially those who have the simplest tax agent. However, those who have own some business and many properties may have someone whom they calculate to do their tax statements. These individuals obviously would suggest someone.

  1. Deciding Which Tax Consultant

After short listed for the tax agents, make an appointment to visit their office. Tax agent is privy to extremely confidential financial info. Before deciding that one, the experience and credentials of the chosen one should be established.

Tax preparation needn’t be something to be anxious concerning. As long as you’ve got the proper tax consultant with you then there’s nothing to worry about. Assist the tax professional by keeping records in an organized manner. Don’t build unrealistic demands unless ready to supply information and data that may build those demands happen. Good accounting work takes time and effort. Your cooperation and honesty is important to positive results. The tax consultant could be a key person for your financial well-being. Make sure to have the proper tax agent for worry-free tax statements.

If you are looking for a Tax or VAT Consultancy in Dubai,

Visit: www.namaccountants.com

Choosing a Tax Agent in Dubai

We have lot of benefits from having a good Tax agents in Dubai. Here are some tips for getting good Tax agents in Dubai, to help you get in order your individual tax returns.

  • Complete tax situation
  • You have more tax issues. This includes being behind in filing tax returns, owing tax to the government among the range of accounting services.
  • You are having issue filing your own individual tax return.
  • You want to protect your business, like acquisition, financial and leasing.

The tax agents who is qualified to handle particular areas that you may need to help in dealing with. Here are some tips:

  • Do not trust agents accountants who say that everything are often deducted or that they will deliver big tax refunds every time.
  • If you have got a straightforward, uncomplicated tax return, you’ll approach any retail accounting company to assist you prepare and file it. The price usually depends on the amount of tax forms to be accomplished and also the seniority of the tax accountant.
  • Get only certified and authorized tax agents in Dubai. Keep in mind that there’s a range of accounting expertise.
  • You have the option of going to a Tax consultancy firm.

In you search for the correct tax agent in Dubai; you will be dealing with tax experts.

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More About VAT

VAT Consultant

Value added Tax or VAT is defined as the consumption tax that’s levied on product and services rendered to customers. VAT is absolutely bared by the end customers of various product and services. The taxable portion of the sales gained by businesses and organizations can then be used to pay the taxes owed to the govt for worth added activities, and also for taxes on input and raw material. In several countries, it’s a very important supply of income for the govt. Therefore, most countries throughout a certain style of tax the same as VAT, on its end customers. It is a form of tax charged on the majority types of business transactions. It’s passed down from one party to a different on the value chain of a product

AT doesn’t base its tax on the sales price, however only the value added activities of every stage of production. While each VAT and sales tax is charged on the top consumers, VAT is also remitted by the various parties among the supply chain.

The rate for VAT varies between countries and additionally for the products and services provided. Most things are charged with the quality rate while a number of the things that are deemed beneficial to the society and country could be charged with a lower rate. The usage of domestic fuel and power, the usage of energy-saving equipment and sanitary hygiene product are a number of the items that qualify for the 5 % VAT. As for the zero rate VAT, a number of the items qualified include books, newspapers, public transportation and food. The main reason why lower rates of VAT are charged for these items is due to the importance and the benefits of the goods and services.

How to Choosing Your VAT Consultancy Firm in UAE

vat consultant

Once you decided to have your company VAT-registered, then that’s once the set up started to roll. The primary thing in order is to find credible VAT consultants in Dubai to initiate the method. With the mandate of the UAE government for corporations to register.

Knows accounting as well

Basic knowledge in accounting is very important. Once VAT is applied to your accounting, changes are expected to implement. Your tax consultant should be ready to guide your finance team on however they’d be ready to incorporate this on their system and show your team a minimum of the basic computation that they’ll follow.

Range of service

Some tax and VAT consultancy in UAE, offer limited services, only for computation. however if you’re a business trying forward to registering your company, it might be best to appear for one that offers a variety of tax consultancy services – from registration to computation and refund consultancy. This could stop you from getting services of multiple suppliers to get the work done. This would possibly lead to confusion, communication issues and delay. Keep in mind that each company has their own systems and process that they follow and hiring over one consultant might have conflicting processes and can simply create the registration harder than it seems.

Organized and accurate

When you are handling numbers, a systematic technique should be followed to ensure the accuracy of the results. The employees of you tax firm is expected to supply correct computation therefore you’d know how much exactly are you handling in terms of numbers.

Knowledgeable in international Tax computation

This is crucial especially for businesses that are running world operations. VAT and tax rules differ on every location and there’s no one-size-fits-all resolution to tax issues. Your tax consultancy firm should be informed on different tax rules and knows that one is applicable for your case. They should be able to give correct computation location wherever your business is running thus you’ll be able to estimate the taxes you wish to obey on each branches.