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DOES VAT APPLY TO ALL BUSINESSES ACROSS THE UAE?
Yes, VAT is equally applied on all businesses registered in the mainland and free zone jurisdictions. Yet, the UAE Cabinet defines certain free zone as a โdesignated zoneโ thus treated as being outside the State. Goods transferred across businesses within the designated zones are free of tax. There are 27 designated zones across the UAE.
List of Supplies on which 0% VAT is charged:
- Supply & import of medication and medical equipment registered with the Ministry of Health & Prevention under its permission or approval.
- Supplies made by government entities are excluded from VAT if the entity is the sole provider of the supply and has no competition within the private sector.
- Direct or Indirect exports of goods and services outside the GCC territory.
- International transportation of passengers & goods that start, end or pass through the territory of the state.
- Supply of goods and services related to the transfer of goods and passengers abroad via land, air or sea.
- Air passenger transport if it is international carriage.
- Supply of certain means of sea, air and land transportation for the purpose of passenger and goods transportation.
- Supply of aircrafts and vessels for rescue purposes by air or sea.
- Supply of certain healthcare services, & related goods and services.
- Supply of certain education services & related goods and services.
- Supply or import of investment precious metals (e.g. gold & silver of 99% purity).
- Supply of buildings to be used by charities.
- Supply of buildings converted from non-residential to residential.
- Supply of residential buildings within 3 years of its completion.
- Supply of crude oil & natural gas.
VAT-EXEMPT SECTORS
- Some financial services.
- Residential properties.
- Bare Land.
- Local passenger transport
TAX GROUP
A Group of companies can register for VAT as a Tax Group. The following are the requisites to form a Tax Group:
- Each Legal Person must have a place of establishment in the State.
- The Legal Persons must be related parties.
- One or more of the Legal Persons should have ownership & control of the others
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Value Added Tax (VAT) is an indirect tax on the consumption or use of goods or services; it is applied across the stages of the supply chain, from when the manufacturer purchases raw materials until the retailer sells the goods to the consumer. Registrants for VAT will collect the VAT applicable to their taxable activities from their customers and pay the tax collected to the authorities.
WHAT IS THE VAT RATE IN THE UAE?
VAT was introduced in the UAE on 1 January 2018; the VAT rate is 5%.
REGISTRATION FOR VAT
Taxable Persons are required to register for VAT through the platform of the Federal Tax Authority (โFTAโ).
The taxable person needs to issue a tax invoice within 14 days from the date of supply in the UAE currency.
At the end of the tax period, the taxable person needs to file a VAT return electronically.
A VAT return is filed each month for taxable persons with annual revenues of AED 150 million or more; or quarterly for taxable persons with revenues below AED 150 million.
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Keams Canyon is prepared to serve you and offer you with the finest service at a reasonable cost
VAT experts assist business owners with effective tax planning, allowing them to better control tax outflow and manage working capital. VAT consultants may help organizations with VAT Advisory and VAT Compliance services, among other things.
Keams Canyon has a team of dedicated and experienced tax professionals who are continuously trained and updated with current law changes having impact on taxable areas of the clients. Any update by FTA is reviewed and discussed within the team and an analysis is done to identify the impact of the tax law amendments which is then communicated to the clients on timely basis.
VAT compliance is a critical function which needs to be monitored on daily basis and for each type of transaction to ensure accurate recording in the books of accounts and correct reporting to FTA within the due date. Organizations choose to appoint professionally qualified staff to manage VAT-related tasks and ensure compliance of the same
Our universal approach ensures long-term corporate success while employing updated techniques to address any tax-related issues. Letโs have a look at our services as dependable VAT consultants inย UAE:
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VAT Registration inย UAE
VAT registration is a mandatory procedure of listing your business with the UAE government as active in production and sales.ย Keams Canyonย provide extensive guidance on VAT registration, as well as procedural formalities and documents required for the entire process. If your business is just starting out, youโre more than likely to have more than enough on your plate to be dealing with VAT registrations, so reaching out to experts can be a time-saving and stress-relieving decision. At Level, we are a team of professionals that offer extensive VAT registration services in UAE, and we provide top-quality support and assistance for local and international businesses.
How Can I Register My Business for VAT in Dubai, UAE?
Registering for VAT is simple. Simply access the UAE Federal Tax Authority website, create an account, and register your business for VAT. You can find plenty of information about VAT on their website, as well as contact info if you want to reach them via phone. Alternatively, you can ask us to handle the entire VAT process for you and skip all the hassle.
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