VAT Implementation

UAE took a bold step by taking a game changing decision of implementing VAT in the framework, as VAT has been implemented from 1^st January 2018 in the Gulf countries. GCC (Gulf Co-operation Council) have agreed to introduce VAT as this will help the nations to increase their revenues and also to reduce their dependency on the oil and related products. VAT will provide the UAE with a new and consistent source of revenue which will be utilized to improve public services.

VAT which is known as Value added tax, it is an indirect general consumption tax which is charged at each stage of the supply chain from production to distribution till end consumer. It is also known as goods and services tax (GST) in some countries. Consumers are the ultimate bearer of the burden of the tax. This tax is levied on most of the transactions both goods and services except exempted supplies. Some of the items such as specified financial services, healthcare, exports outside GCC etc. are also kept as zero-rated rest all are charged at a standard rate of 5 percent.

UAE government have done a detailed study and analysis of the whole structure, framework and business models so to implement VAT in best possible manner and to avoid any complications and misconceptions. As this detailed study helped the authority to better understand the models, identify specific rules and customer base, associated with one’s business. The government authorities are still working for the easy implementation of the new tax laws in UAE and have achieved some key milestones as they have already made available UAE VAT laws in MOF, FTA portal for online VAT registration, released federal laws and many more.

There are certain things and steps that should be kept in mind for the best implementation of VAT services:

Business readiness and their models: There is a clear need of understanding the business model and structure of the business to implement the plan according to the need of the business and for that businesses should ensure that all the financial transactions are recorded and books of accounts are accurate and up to date. Our experts will interact with you or even visit the concerned organization when required and help you out in designing VAT implementation plan.

Registration of VAT: Businesses should record all financial transactions in their books and record all necessary details, they should also maintain their books of accounts accurately and up to date. As these books will be the evidence to check the annual turnover of the company which will decide that whether a company needs mandatory/voluntary registration or can request the exemption. Our experts will help you in basic registration procedure required to comply and also ensure that all the formalities will be done within the prescribed limit of time with the concerned authority.

Impact Analysis of VAT on Individuals/Businesses: This analysis will help in better understanding and appraisal of management, our experts will help you in knowing the essentials for your business.

VAT Transaction Management: Our VAT experts and specialist will help you in the smooth functioning of your businesses as they will also ensure that the transactions to be UAE VAT compliant. Our experts will also help you in incorporating all the changes required according to the new VAT laws such as changes required in accounting, billing and administration procedures.

VAT Return Filing: Our assistance on proper planning and timing of the cash flows will help you in accurate preparation and filing of VAT return as well as accepting the correct tax credit against the total VAT liability.

VAT Compliance: Our skilled and dedicated VAT specialists ensure timely return filings and advise suitable solutions.

There are few other tasks that every organization should do to be VAT ready and implement the VAT in best manner:

• Introduction best software
• Educating the team
• Inform the third party regarding VAT