With the announcement of the introduction of VAT in UAE from 1st January 2018, it is mandatory for the businesses to register themselves as per the criteria specified in the new tax regime. All the individuals or the firms engaged in businesses activity have to comply with the rule laid down by the Federal Tax Authority. The businesses that have not registered for VAT will neither be able to charge VAT on their sale nor will be able to claim Input VAT paid on their purchases.
It is mandatory for the businesses to register themselves if the annual turnover exceeds AED 375,000 and this threshold must have been exceeded in the last 12 months or this threshold is expected to be exceeded in next 30 days. Businesses can opt for voluntary registration if the annual turnover exceeds AED 187,500 but is below AED 375,000 and this threshold is expected to be exceeded in next 30 days.
Documents Required for VAT Registration
A thorough study and analysis of the business model is required for the effective implementation of VAT within the organization. Full understanding of the business model renders clear insight about the organization; hence it is a perquisite to identify specific rules and customer base, associated with one鈥檚 business. The steps for the successful implementation of VAT services can be summed up as following:
VAT return is a record or statement of the VAT paid on taxable supply of goods and services during a specified period. Usually, VAT returns are filled quarterly and sometimes on a monthly basis. As per the Federal law no. (7) of 2017 on Tax procedures, a taxable person needs to submit VAT returns in UAE with the information and data specified for Tax purpose in accordance with the form, specified by the Federal Tax Authority.
Timely filing of the VAT returns is essential for the registered businesses in order to be compliant with the rules and regulations laid down in the law. Every taxable person is required to submit the VAT Return within 28 days from the end of each Tax period prescribed by the FTA. This must be in accordance with the provisions of the UAE VAT law. The taxable person is also liable to remit the amount of tax due to the FTA within the time frame specified by the UAE VAT Law; ie within 28 days from the end of each tax period.
VAT return can be filed online using e-filing portal of Federal Tax Authority. There is no provision for filling the VAT return manually; it is entirely an online process and it has to be followed on a monthly and a quarterly basis.
It is an important mechanism for the viability of VAT system, since it works as a medium for reporting the VAT collected and paid to the revenue authorities. . VAT return filing is a formal way of reporting the VAT collected and paid during any particular period. VAT return is prepared on the basis of the documents available in the records or ledgers. VAT returns also form a basis for auditing and activities related to enforcement of VAT law.
Professional tax consultants and accountants play very useful role in VAT return filing. Their professional advice helps immensely to the businesses in complying with the rules and regulations laid down by the tax authority. Our dedicated tax consultancy team will unburden you with such hectic and engaging tasks that demands constant compliance. They constantly keep track of the time-frame specified by the FTA and perform the function of return filing within the stipulated time, thereby, ensuring smooth compliance of the law, and related rules and regulations.
To avoid double taxation by taking the advantage of Double Taxation Avoidance Agreement, eligible government entities, companies and individuals should be issued tax Residency (Tax Domicile )Certificate from the Ministry of Finance (MoF) of the UAE government. The certificate is valid for a period of one year from the date of issue.
Our experienced and qualified professionals can support and guide you in getting the tax residency or Tax Domicile Certificate without any hassle.
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