Our Value-added tax Services

VAT is an indirect tax imposed on goods and services at different stages of the supply chain. Although businesses that produce or sell goods and services are responsible for calculating and collecting VAT, the ultimate responsibility for paying this tax lies with the end consumer. In the UAE, VAT was implemented starting January 1, 2018, at a rate of 5% on most goods and services.

When Should You Register for VAT?

Companies must register when their taxable revenues or supplies exceed certain thresholds:

Mandatory Registration: Companies must register if their taxable revenues or supplies exceed AED 375,000 annually.
Optional Registration: Companies with revenues between AED 187,500 and AED 375,000 may register voluntarily.

How to Register for Value-added tax?

Companies can register through the Federal Tax Authority’s website by creating an account and providing accurate details about their business type and revenue. To avoid penalties, it is advisable to seek help from our experts at the International Consultancy & Auditing Center for smooth registration and documentation submission.

Phone: 0568086312, 042501521
Email: [email protected]

How to Collect Value-added tax?

Once registered, companies must ensure compliance by:

Documenting Revenue and Expenses: Companies must track all revenues and expenses, including VAT charged on sales (output tax) and Value-added tax paid on purchases (input tax).
Charging VAT to Customers: Registered companies must charge 5% VAT on all goods and services sold to final customers.
Paying VAT: At the end of each tax period, the company must calculate the due tax by subtracting input tax from output tax. If output tax exceeds input tax, the company must pay the difference to the Federal Tax Authority. If input tax exceeds output tax, the company may apply for a refund.

Which Companies Must Apply VAT?

VAT applies in all Emirates, including most free zones. However, some free zones are considered “outside the country” and are exempt from VAT.

Goods Transfer Between Free Zones:

Goods transferred between exempt free zones are not subject to VAT. Companies should be aware of these exemptions to avoid violations.

VAT Declaration:

Companies must submit a VAT return (quarterly or annually, depending on the business size), detailing:

Input VAT: The tax paid on goods and services purchased.
Output VAT: The tax collected from customers on sales.

Companies must pay the difference if output VAT exceeds input VAT or apply for a refund if the reverse is true.

Our Services at the International Consultancy & Auditing Center

We provide comprehensive tax services, including:

Specialized Tax Consulting: We help you understand VAT laws and how to apply them to your business.
VAT Registration: We handle the entire registration process efficiently to avoid fines.
VAT Deregistration: We assist with deregistration if your business no longer meets the registration threshold.
Support for VAT Disputes: We offer full support in filing objections and resolving any issues with the Federal Tax Authority.

Why Choose Us?

Full compliance with tax laws.
Avoid penalties through correct registration.
Professional consultations and ongoing support throughout your VAT dealings.

Contact Us Now! For tax consultation or more information, feel free to contact us via the above numbers or email.