VAT Accounting Services

VAT Accounting Services Dubai| Accounting & Bookkeeping Solutions, UAE

As the VAT will be one of the major commercial taxes, it is essential to hire accounting firms for VAT in the UAE for efficient management of VAT.

Since the value-added tax is a new commercial tax in Dubai, people are not aware of it. Right from the registration to the filing of returns, a person needs to be updated about all the VAT rules. We are a highly recommended value-added tax consultant in Dubai. Our professional team of experienced chartered accountants and financial advisors is adept in VAT management. With a skilful team, we are equipped to provide consultancy to small enterprises, individuals, and bigger corporates.

When there are hundreds and thousands of transactions in your firm, tax management is not an easy task. Each and every record of the transaction with applicable taxes, tax payment, and other details are mandatory for the firm. Since the sellers and buyers of goods and services do not have complete knowledge of handling taxes, a professional consultant is required to communicate with the tax authorities.

VAT Accounting in UAE

VAT accounting is a process related to the VAT section of a business concern. It is important for every taxable person to maintain a book of records under UAE Tax Law, and it requires detailed documentation. Proper documentation helps to identify the consumption tax that needs to be paid on time. It reduces the tax burden. The maintenance of VAT records is mandatory in the UAE. Providing the best VAT consultancy services in Dubai and UAE, CDA  provides all the essential activities that you need to be managed with regard to VAT accounting including VAT data, review of tax reports, tax calculation and filing, VAT documentation, etc in a very seamless way.

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Different Types of VAT

Input VAT

The Input VAT is charged on goods when purchased or on services when offered. If you are a registered buyer with the FTA, the VAT amount will be deducted from your settlement.

Output VAT

The output VAT is charged on the sale of goods and services delivered. It is calculated directly.

VAT rate in the UAE

VAT is charged on a different category basis as per the following rate in the UAE

Standard Category

Automobiles, electronic items, fuel, jewelry, food & beverage, apparel, entertainment services, cosmetics, restaurants & hotels, construction, commercial leasing, etc. attract the standard rate of 5% VAT.

Zero Category

The export of goods or services, international transportation of goods and passengers, supply of certain means of transport, supply or import of investment precious metals with 99% purity and more, residential buildings, buildings used by charities, certain education services, and certain healthcare services attract a Zero rate VAT.

Exempted Category

Financial services, certain residential buildings, bare land, and local passenger transportation are exempted from VAT charging.

Several accounting firms are now also providing all the VAT-related services. However, one should be sure of the services one expects from a value-added tax consultant in the UAE. It should cover the entire range of VAT related liabilities.

  • VAT Planning
  • Updating the client about basic VAT rules and regulations
  • Tracking all the updates for immediate implementation to avoid penalties
  • VAT registration of the firm
  • Maintaining records of VAT-related documents and statements
  • Advising on VAT rates
  • Filing TAX Returns
  • Liaising with the tax authorities whenever required

Instead of relying on internet data, it is always the best option to hire a VAT consultant. Companies are advised of the latest information and rules related to the tax.

Why do you need proper Accounting for VAT?

VAT accounting in Dubai demands a proper accounting system to make the procedures error-free and accurate. Systematic and well-organized accounting services are required to fulfill the VAT needs in compliance with UAE law.

Mandatory Requirement by Law

Proper VAT accounting is mandatory for every taxable business registered with the FTA.

Ensures easy TAX Returns

VAT accounting ensures the access of all the necessary documents relating to tax filing at one place. This can make tax return filing easy.

Helps the expansion to be flexible

VAT accounting provides the details of the estimated total amount to be paid as taxes. This will help the management to set the budget if it wants to expand the business.

Serves as a checklist

VAT accounting serves as a checklist that allows the business and the concerned authorities to check whether all the tax-related documents are submitted or not, as it consists of the names of the materials to be correctly filled and submitted

Reduces the burden of TAX Audit

Proper accounting and financial statements to ensure the business keeps all the data related to all the transactions made by it. It helps the company from future tax audits or inspections from the authorities to conduct the assessment without much burden.

Familiarizes with new VAT Related Schemes

VAT accounting can create awareness among the companies about how to get the benefits issued by the authorities from time to time.

Enhances the National Revenue Growth

VAT accounting is a process that calculates and registers the total amount of Taxes to be paid by a company to the government. The proper tax filing will surely fill the coffer that will boost the national growth.

Decreases the Risk of Penalties

VAT accounting ensures that the company is complying with all the rules and regulations set by the authority. Proper tracking and payment to FTA reduce the risk of getting an administrative penalty by the government.

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