Home » Few things you need to know about the TAX/VAT in UAE
VAT has been set at 5 per cent on a host of products, but certain segments have been exempted.
The final VAT regulations announced helped to clear the air for investors and companies in the UAE. Set to be introduced across the Gulf countries, VAT has been set at 5 per cent on a host of products, but certain segments have been exempted, such as basic consumer goods, healthcare and education, etc.
The new law also assigns responsibilities to eligible resident taxable persons including non-residents and investors and their agents as well as nominated representatives who will have to register and ensure specified compliance.
Based on the outcome of the 1st step, our finance and tax teams will be available to implement changes in your IT systems and throughout your organization.
For small SMEs, we can provide a set-up of a simple accounting systems and implementation of VAT rules, through our outsourced accounting services.
For larger SMEs, we can assist your finance team with the implementation and provide outsource CFO or Finance Manager services on a monthly basis in order to strengthen your team.
We understand that change can be a difficult thing that is why we will deliver tailored VAT training for your teams to assist with the transition in to VAT. Our specialist VAT advisory team will also be on hand to provide post implementation support and guidance during the project to ensure all agreed deliverables are delivered.
Value Added Tax (VAT) is a tax on consumption and it applies to almost all goods and services. As most of the management of the companies might be aware of the fact that as part of diversifying the economy and revenue generation, the GCC governments have decided to adopt Value Added Tax (VAT).
UAE is also going to adopt VAT which applies to almost all goods and services except basic food items, healthcare, and education.
Though the burden normally lies on the ultimate consumer the business entities need to change the systems, processes, and procedures to comply the new legal requirement which was implemented by the government from 1st Jan 2018.
The above requirements demand more control and safety on stock, invoices, and records, ensure proper filing system, modification/ upgradations of software, compliance of due dates for collection, payment, and remittance of tax, filing of VAT returns to govt etc. Then the role of the accountant will be very important for the compliance of VAT. Maintenance of accounts and records is also important as per new company law etc.
There will be massive growth of auditing and accounting firms in UAE as the companies will have to keep accurate and extensive records of all the business transactions. These financial firms will help to keep all the documents and allow the management of the company to focus on other important matters.
Availing the VAT-related services which are provided by ALYA Chartered Accountants is a perfect option. ALYA is a reputed auditing firm and can offer you service both in mainland and free zones. This firm is approved by free zones such as Dafza, Jafza, Dmcc, Shams, and many others. For more details, Contact Us. We will be glad to be of service.
Truly, let us know what service you are looking for and hence we can get back to you with more details.
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