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VAT Accounting Services
As VAT becomes one of the primary commercial taxes, it is crucial to engage accounting firms specialising in VAT in the UAE for effective VAT management.
Being a relatively new tax in Dubai, many individuals and businesses are still unfamiliar with its requirements. From registration to return filing, staying informed about all VAT rules is essential. We are a highly recommended VAT consultancy in Dubai, with a professional team of experienced chartered accountants and financial advisors skilled in VAT management. Our expert team is well-equipped to provide consultancy services to individuals, small businesses, and large corporations.
When your business handles hundreds or thousands of transactions, managing taxes becomes a complex task. Every transaction must be recorded accurately with the correct tax applied, payments made, and all relevant details maintained. As most sellers and buyers lack in-depth knowledge of tax processes, it is vital to have a professional consultant to manage communications with tax authorities and ensure full compliance.
VAT Accounting in UAE
VAT accounting refers to the process associated with the VAT component of a business. Under UAE Tax Law, it is essential for every taxable person to maintain proper books of records, which involve detailed documentation. Accurate documentation helps determine the consumption tax payable and ensures timely payment, thereby reducing the overall tax burden.
Maintaining VAT records is a legal requirement in the UAE. As a leading provider of VAT consultancy services in Dubai and across the UAE, CDA offers comprehensive support for all aspects of VAT accounting. This includes managing VAT data, reviewing tax reports, calculating and filing taxes, maintaining VAT documentation, and more, all in a smooth and efficient manner.
Different Types of VAT
Input VAT
Input VAT is the tax paid on purchases of goods or services. For FTA-registered buyers, this amount can be deducted from the total VAT payable.
Output VAT
Output VAT is the tax collected on the sale of goods or services. It is calculated directly based on the selling price.
VAT rate in the UAE
VAT in the UAE is applied at different rates based on specific categories, as outlined below:
A 5% VAT applies to most goods and services, including automobiles, electronics, fuel, jewelry, food and beverages, clothing, entertainment, cosmetics, restaurants, hotels, construction, and commercial leases.
Goods and services subject to 0% VAT include exports, international transport of goods and passengers, certain means of transport, investment-grade precious metals (99% purity or higher), residential buildings, charity-related buildings, specific education services, and certain healthcare services.
No VAT is charged on specific categories such as financial services, certain residential properties, bare land, and local passenger transportation.
Many accounting firms now offer comprehensive VAT services, but it’s important to choose a consultant who covers all VAT-related obligations. Rather than relying on online information, hiring a VAT expert ensures access to the latest tax rules and accurate guidance.
Why Proper VAT Accounting is Essential
Legal Requirement
All FTA-registered taxable businesses must maintain VAT-compliant records.
Simplifies Tax Returns
Organises all necessary documents, making tax filing easier and faster.
Supports Business Growth
Helps estimate tax liabilities, aiding in budgeting for expansion.
Acts as a Checklist
Ensures all tax-related documents are correctly prepared and submitted.
Eases Tax Audits
Accurate records minimize the burden during audits or inspections.
Awareness of VAT Schemes
Keeps businesses informed about new VAT benefits and updates.
Boosts National Revenue
Timely and accurate tax payments contribute to economic growth.
Reduces Penalty Risk
Ensures compliance with FTA regulations, lowering chances of fines.
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