VAT Advisory

Introduction to VAT Advisory Services

VAT stands for value added tax and it is a tax that is deducted on the value added to a product. It is being applied since the 1st of January, 2018 and all products and services have been affected by the tax except education, health care and food items. Normally, the end user is affected by the introduction of VAT however, keeping in mind the price elasticity demand and supply forces of the market, business have to make certain changes as well to meet the legal requirements.

For every entity with a trade license Dubai and revenue of over AED 375,000 annually, registration for VAT is necessary through online form submission. This has to be done within 30 days of being required to register with the authorities. However, if the annual revenue is less than AED 375,000 or more than AED 187,500 the registration will be voluntary or optional.

Why VAT in UAE?

The VAT has been introduced in the UAE in order to increase revenue of the government. The government has been planning on providing even better facilities to people in the UAE. With no taxes coming from the free zone companies and other businesses with a trade license Dubai, the government had to arrange for revenue generation to meet the increasing government spending that was becoming a necessity. The VAT will allow the government to provide better medical facilities, meet increased transportation infrastructure costs, meet the costs of increasing population and develop areas that were still undeveloped.

What will be the impact of VAT on your Business?

With every regulation, every business setup in Dubai is affected. The same has happened for the businesses which were required to register for the VAT with the Federal Tax Authority (FTA). Businesses which have revenue higher than AED 375,000 annually will have to show the collection of VAT and provide the proof of financial transactions to the authorities for verification of eligibility of VAT deduction. The business setup in Dubai, which tries to transfer the costs of the VAT to the clients and customers, will have to increase charges and prices so that the profit and revenue remains the same after tax is deducted. This may or may not cause them to lose customers and clients depending on the nature and elasticity of the product or service in question.

Services offered by KWS ME in VAT Advisory

KWS Middle East is one of the best business setup consultants in Dubai. The company provides consultancy to businesses regarding company formation in Dubai and support services such as visa and product registration. With the introduction of VAT in the UAE, businesses have increasingly asked for help with the registration and procedure details. KWS Middle East provides businesses with details regarding the tax and the eligibility criteria. The business setup consultants in Dubai also provide you with the details on how to register and provide the financial transactions to the government as required by them in order to be safe from the penalty that has to be paid on late updating of company ledgers. Company formation in Dubai will now be even more interesting with the application of VAT tax. KWS Middle East will help new investors and entrepreneurs to understand the process and reasons behind the implementation of the new tax and help them deal with it in the market.

  • An impact analysis on your company business to identify what needs to be addressed
  • Assess & Review of business processes & accounting systems
  • Business Registration Assistance
  • Mandatory compliance with legislation & advising on transitional provisions
  • Periodic review of compliance & assistance in making your Business tax complaint
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