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VAT Registration:
The process of businesses registering with tax authorities to collect and remit VAT on taxable goods and services.
VAT Return Filing
Submit periodic reports to tax authorities detailing VAT collected on sales and VAT paid on purchases during a specific reporting period.
VAT Refund:
Claiming a refund of excess VAT paid on purchases compared to VAT collected on sales.
VAT Audit:
Examination by tax authorities to verify VAT transaction accuracy and compliance with VAT laws.
VAT Accounting:
Proper recording and tracking of VAT-related transactions in business accounting records.
VAT Deregistration:
Canceling VAT registration with tax authorities due to various reasons such as business closure or no longer meeting turnover thresholds.
In the business hub of Dubai, understanding and managing Value Added Tax (VAT) is crucial for success. At RadiantBiz, we stand out as trusted VAT consultants in Dubai, UAE. Our expertise covers everything from VAT registration and strategic tax planning to navigating the ever-changing tax landscape. As registered consultants with the UAE’s Federal Tax Authority, we ensure our clients receive effective assistance in various VAT-related areas. From consulting and registration to training, returns, and keeping up with tax laws, RadiantBiz VAT consultants is your reliable partner for seamless VAT compliance and financial well-being.
Since 2018, the Value Added Tax has been a part of taxation in the entire United Arab Emirates. It is the only tax of its kind and is added to the most goods and services in Dubai. In the city, the general VAT rate of 5% is applied to most goods and services while the exempted goods and services get 0% rate provided they meet certain specific conditions.
There are several exemptions that fall under the VAT legislation where certain goods and services enjoy a 0% VAT rate. Following are the goods and services that enjoy a 0% VAT rate.
The ensuing supply of residential real estate are excluded from the VAT. Additionally, VAT is not applied to transactions involving bare land or domestic passenger transportation.
Furthermore, some transactions in goods and services between companies established in UAE designated Free Zones may not be subjected to VAT. However, the services used inside the designated Free Zones are subjected to VAT in accordance to the general application of the UAE VAT legislation.
The statutory VAT registration level for enterprises with UAE residents is AED 375,000, and the voluntary registration threshold is AED 187,500. For non-resident companies providing supplies for which the UAE VAT must be charged, there is no registration threshold. Grouping VAT is permitted as long as certain requirements are met. There are certain documentation and record-keeping needs, like the need to send tax invoices and VAT returns (quarterly or monthly depending on the FTA’s allotment).
In theory, excess input VAT can be reclaimed from the FTA after following a specified process. As an alternative, VAT credits can be carried over and subtracted from subsequent output VAT. Fines and penalties may apply to companies who don’t follow their VAT duties. Penalties come in both fixed and tax-geared forms.
Account Creation Support : From form registration to running the entire process without hurdles, we help you with your account creation and maintenance. With our years of experience in Business build-up and set-up in Dubai, we are always on top of our research and due diligence and thus we provide the best accounting services in the city.
Documentation : We provide you the complete documentation solution by prying the application process promptly and smoothly. We assess all your documents and ready them for the documentation part of your entire Value Added Tax (VAT) registration process.
Tax Registration Number (TRN) Certificate : Remember that VAT in Dubai only works if it has been registered and verified with the Government of Dubai. And thus to make sure all businesses adhere to the strict laws of VAT, all businesses require their unique Tax Registration Number and we help you get it and certify it.
Tax Residency : After the completion of your VAT registration, documentation and Tax Registration Number Certificate, your business is now eligible for Tax Residency and we make sure that you reach this stage as fast as possible and with complete adherence to the Dubai Tax law.
0% rate of VAT applies to certain types of goods and services. On 0% VAT, input tax can be recovered. Those businesses that qualify for 0% VAT on all their purchases except from some classified goods and services. Examples are:
Exempt supplies are goods and services for which VAT is not charged. Additionally, you are exempt from the VAT registration requirement if all of your supplies fall under the category of exempt supplies. Additionally, you are not even eligible to claim input tax.
The Value Added Tax in Dubai is the only major tax that is utilised in the city. Since Dubai is islamic in nature, most taxes are exempted in the city. And only 5% VAT is issued on most goods & services. However, on some goods and services that 5% is exempted.
TWe at RadiantBiz are here to provide you with the best consultancy services that help you set up and comply with Value Added Tax policy in the country. We assess your invoices, quotations, contracts, and purchase orders and determine which category your business falls in .
Your business can fall under the categories of Mandatory Registration or Voluntary Registration, both have their own due diligence and set of rules.
If your business’s Value of taxable goods and services exceeds that of the mandatory registration threshold of AED 375,000 over the previous 12 month period, or your company’s anticipated total value of all taxable goods and services will be greater than the mandatory registration threshold of AED 375,000 in the next 30 days.
On the other hand if your business’s Value of taxable goods and services exceeds that of the voluntary registration threshold of AED 187,500 over the previous 12 month period or if your company’s anticipated total Value of all taxable goods & services will be greater than the voluntary registration threshold of AED 187,500 in the next 30 days.
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