VAT Consultancy

The United Arab Emirates has issued legislation and regulations regarding the newly introduced Value Added Taxation system, and the new law has been effective in since January 1st, 2018. The standard VAT rate will be 5%, with a nil VAT rate for some goods and services. Businesses making taxable supplies must register with the tax authorities if turnover exceeds AED 375,000 (around $100,000). VAT is charged at each step of the ‘supply chain’. Ultimate consumers generally bear the VAT cost while Businesses collect and account for the tax, in a way acting as a tax collector on behalf of the government.

Since it would be the first time that the UAE will collect any form of general consumptions tax either directly or indirectly, thus a lot of ambiguity and uncertainty is around the new law among the consumers and businesses alike. It is a challenge for the businesses to understand and implement the tax effectively. This is where our expertise and guidance will be handy to the businesses as we work on both the knowledge sharing and educating our clients.

Since the amendment of the new law, there are a lot of points that need to be addressed and taken into consideration by all categories of businesses. IT Systems of the businesses should be capable of dealing with the new tax, creating VAT reporting procedures and VAT filing procedures, and a host of other tasks all designed to ensure that VAT Returns are correct from first to last. Our Vat Experts and Consultants in UAE are more than capable to overcome any issues that may be encountered during the process of accounting. New operating models will have to be adopted. Employees will need comprehensive training to enhance their skill sets for the same.

We have got a team of experienced individuals who are driven to simplify and ease up the entire taxation process and are capable of advising and assisting businesses in the region to improve their systems and processes.

We primarily focus on core three major aspects that include : 

VAT Accounting

It requires a basic understanding of VAT Laws and rules to set up accounting properly. We offer knowledge sharing and training sessions tailored to meet the needs of your organization, both in terms of relevant content and best approach. We are flexible in both our way of working and our learning.

Our course is based on basics of accounting, such as,

1. How to Account for VAT?
2. VAT Report Preparation
3. How to Set Up accounting System and Maintain Accounting Records?
4. Evaluate & Plan

VAT Planning

We offer valuable and commercial advice in the most effective way required for structuring your business and transactions from a VAT. Planning for the new project should ensure any VAT pitfalls are identified and avoided and best positioned to mitigate the cost of VAT to the transactions.

If the arrangements are already in place we can carry out post-implementation reviews, involving the review of contractual arrangements and other project documentation along with the commercial reality to ensure that the arrangement does not create any exposures.

VAT Advisory

Having effective processes and procedures is not sufficient at times. We make sure you manage your cash flow as effectively as possible and minimize the risk of errors arising, by periodical check and advice from our experts.

We could categorize our goals into three major verticals :

Evaluate & Plan

• Business Impact Assessment – understanding your business in depth and mapping of existing systems and identifying key VAT touch points.
• Review of key documents like existing contracts and incorporation of VAT clauses in the existing and new contracts and related documents.
• Training sessions to create an organization-wide awareness and preparedness on the effect of VAT implementation.

Design Develop & Train

• Advise, develop and assist in restructuring transactions, supply chain, and other related processes
• Advise and support for requisite changes in the IT systems and applications.
• Train and equip the key personnel.

Implementation & Compliance

• Assist in VAT registrations and in the preparation and filing of VAT returns.
• Handhold during the initial phase.
• Align compliance practices with VAT requisites.