Value Added Tax (VAT) is an indirect tax which was introduced in 1st of January 2018 at a rate of 5% in Dubai, UAE. And it has an involvement on the individuals and businesses throughout the UAE.
The Federal Tax Authority
Furthermore, The Federal Tax Authority (FTA) manages the administration and collection of income taxes and other fines. It also distributes tax-generated revenues and applying the expense related methodology in the UAE.
VAT Consultancy in Dubai, UAE
The impact of vat will have a significant effect on the productivity of a businesses in Dubai UAE, and there is a risk when the complexity of the transactions increases the taxpayers find it more difficult to fulfill their tax payments on time.
This complication can be overcome by the VAT consultancy services provided by the VAT consultants in Dubai, UAE.
Kloudac in one such recognized Accounting firm in Dubai consisting leading, UAE which provides VAT consultancy for the companies or Organizations.
VAT Registration Services
*Kloudac guides step-by-step on registration process. visit the link Kloudac.
VAT Registration is a procedure where a person registers to the FTA (Federal Tax Authority).
To register with the FTA, a person should satisfy a set of conditions. If the person satisfies those conditions, that person could register to the FTA and then receives a TRN (Tax Registration Number) issued by the FTA in UAE. A person who owns a TRN has the permission to collect and remit tax in UAE.
Moreover, there are 2 types of VAT registrations in UAE. They are Mandatory VAT registration and Voluntary VAT registration.
Mandatory VAT Registration is when a person who make supplies or sales of more than AED 375,000 in the past 12 months should mandatorily do VAT registration (in Dubai, UAE).
Apart from that, Voluntary VAT Registration is when a person makes supplies or sales which exceeds AED 187,500 but less than AED 375,000 for the past 12 months. That person can do voluntary VAT registration in Dubai, UAE (It is optional).
Registration Process for VAT in Dubai, UAE
Registration process for VAT via FTA is an easy task. Since the whole process is done online.
Step 1: Create an account in FTA.
Step 2: Log in to e-services account in FTA.
Step 2: Continue the registration process by submitting the required documents. Some of the required documents are stated below:
- Details of the bank
- Company Trade License
- Certificate of Incorporation
- Expected turnover in the next 30 days.
- Documents for the authorization process
Step 3: Finish Registration
VAT Return Filing Services
All the tax registrants should submit details of supplies and purchases to the Federal Tax Authority (FTA) in Dubai, UAE.
VAT Return documenting in the UAE relies upon the expense time frames allocated to your business by FTA upon VAT Registration.
Moreover, registrants’ tax dates are determined by the FTA during the approval stages of VAT registration. The period can be monthly or quarterly as determined by the authority. VAT Return filing process is more convenient since it is an online process. During this process, registrant is required to submit only the most relevant document and does not require to submit tax invoices. But should maintain all the documents related to the business in an organized manner (in order to submit them to FTA if required).
VAT Accounting
Kloudac is an accounting firm in Dubai, UAE which manages and give solutions for VAT Accountancy issues faced by SMEs.
VAT consultancy is a mandatory for growing organizations. Kloudac assists you to maintain Vat Records and footpath all the details related to VAT payment.
We also assist you regarding unnecessary tax payments and manage all your tax related issues.
Kloudac also furnish you with: