Vat Consultancy Services in UAE– What You Need to Know

If you’re setting up a business in Dubai, you might have heard of the Value Added Tax (VAT) or its older version, the Sales and Services Tax (SST). But what do you know about it? And how can you go about fulfilling your tax obligations? If you’re confused about VAT, this article will give you an introduction to what VAT is, how it works and why it’s important that you pay your taxes on time. Read on to learn all about VAT in Dubai!

What is Value Added Tax (VAT)?

So, what is VAT? It’s a value-added tax levied on all transactions that add value. Basically, it’s a way for countries to collect sales tax on every sale made between two companies. Let’s break down how VAT affects business owners and customers so you can make sure your business stays compliant and your customers pay their fair share of taxes. This means both vendors and purchasers are responsible for paying taxes on their respective products and services! That is why you need our help when setting up Vat Consultancy Services in Dubai with us today.

How does VAT work?

VAT stands for Value Added Tax. The VAT was created primarily as a consumption tax (indirect tax), meaning that it is payable every time goods or services are purchased by an end consumer. This can be quite different from other types of taxes like income tax, which is only payable when there is a taxable event such as an income gain (for example, your salary or bonus). Income taxes tend to be applied directly on income whereas VATs generally apply on consumables; effectively passing on costs to consumers. While other indirect taxes can apply in some jurisdictions and even nationalities, VATs are typically used worldwide. Vat consulting services UAE provide all important information about vat process in UAE and other countries where applicable

Who needs to register for VAT?

If you’re a business owner in UAE, you will have to register for VAT if your revenue exceeds AED 375,000. Since businesses can be exempt from VAT or be eligible for different VAT rates, it’s important that you do your research before registering with MRA and obtain an accurate estimate of your taxable turnover. The various types of business are classified into four categories: type-1 (essentially retailers), type-2 (heavy industry), type-3 (services) and type-4 (exporters). If you fall under one of these categories, then getting registered with MRA is as simple as filling out a short online form. Spectrum Accountants provide free Vat Services

Businesses that are exempt from VAT registration

The following businesses are exempt from VAT registration, but they should be registered for National Insurance purposes. If a business is exempt from VAT, then it cannot recover any input tax on expenses. Furthermore, all of its sales are zero-rated (i.e., subject to 0% VAT) regardless of whether or not it’s registered for VAT. It is not required to issue a VAT invoice under these circumstances; however, suppliers can only claim back any input tax incurred if a valid invoice has been issued

How to register for VAT

Since January 2015, all businesses are required to register for VAT as soon as their annual turnover exceeds AED375,000. The tax collected is 12% on most items and 18% on others, so it’s crucial that you ensure your VAT registration covers both VAT elements. Spectrum Accounts offers Vat consultancy services in Dubai. Our company has an extensive experience of more than ten years in the UAE Accounting field, helping thousands of business owners to get ready for VAT Registration process. We offer a free consultation service where we help you understand what exactly needs to be done before registering for VAT and assist with filling out any forms required by customs or government departments. Spectrum accounts help clients through every step of their corporate structure such as company formation, trade license application and business setup with other necessary documentation like trading license, work permits, tax registration, vat registration etc. Our team will provide all support regarding local legal compliance requirements and filing taxes related documentation at the right time with appropriate authorities.

Contact Us

Website:https://www.spectrumaccounts.com/vat-consultancy-services-dubai-uae

Address: 305, Hamsah – A,

Ansar Gallery, Al Karama,

Dubai, United Arab Emirates.

P.O.Box : 379682

Email id: info@spectrumaccounts.com

Mob no: +971-50-986-6466

Spectrum is an Audit & Advisory firm based in Dubai, Uae. Our highly qualified and experienced staff provide services like Auditing, Accountancy, Business advice etc.