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About VAT

VAT is an expense that applies on use of all administrations and products. GCC Government has adopted this taxation system from 1st January 2018. It will be implemented almost all goods and services apart from food items, healthcare, and education. In start tax rate is very nominal i.e. five percent. End-user is mostly affected by the implementation of tax however business setups have to make certain changes to the process and procedure to comply with the legal requirements implemented by the government effective from 1st Jan 2018.

All businesses with annual revenue of Dh 375,000 or more are required to submit their VAT registration online applications within 30 days of being required to be registering. As per the regulatory Authority Federal Tax Authority Registration (FTA), all businesses in UAE must ensure the recording of their financial transactions, apart from that VAT registration requirements have done and ledgers are updated in time to avoid penalties.

Registration will be mandatory in case revenue limit cross AED 375,000, if turnover is greater than AED 187,500, but didn’t exceeds AED 375,000 then optional or voluntary registration should be done.

VAT Registration Process

RKCJ & Co. can assist you to go through a simple process to start with VAT in UAE.

  • Provision of relevant documents for VAT registration
  • Receive you trade license, proof of business setup, banking details & signatory papers
  • Prepare documents to apply for business authorization like POA, MOA etc.
  • Relevant description of Business activities in the form of declaration.
  • File your income from previous 12 months and provide expected a figure
  • Financial experts will calculate the value of imports and exports
  • Manage your planning in order to deal with GCC officials & customers.

Requisites in VAT calculation and VAT Accounting system

  • Make sure that bill of purchasing goods must be incorporated. Also, confirm about the taxable stuff either tax has been appropriately charged means the input tax that should be given by the dealer and particulars specified in the invoices.
  • Assign the price on the retailing value at the instance of transaction or provision of accounts together with reducing the amount of input tax in order to reach the sum that has to be paid.
  • Compute the payment of tax and deposit to Government within due date.
  • Study related to Financial Experiences
  • To legitimize the paid tax, you need to sustain invoices, financial records, VAT returns, proper stock, VAT accounting and further significant proceedings at the moment of purchase.
  • Supply the significant information that is appealed by the Government in filing the VAT returns to the Government authorities within the specific time.
  • VAT Calculation
  • Filing VAT
  • Convey reports on VAT Filing and Processing

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