Businesses in the UAE - VAT Obligations Guide 2022

 In January 2022 – VAT completed 4 years of existence – and marked a stark change in the regulatory landscape of the UAE. Ensuring VAT compliance is of utmost importance to organizations, and there are various VAT consultants in the UAE who help you stay compliant.

What is the scope of VAT in the UAE in 2022?

If your total taxable supplies and imports exceed the mandatory registration value of AED 375,000 over the last 12 months or will exceed it in the next 30 days – you need to be VAT registered and compliance.

What are the things you need to follow?

-Maintain your VAT records. It is important to have the VAT records, for at least 5 years. The documentation includes: the company’s supplies and imports of goods & services, tax invoices, credit notes, alternative documents, records of goods and services for which no input tax has been deduced, records of goods and services exported by the company, any adjustments or corrections made on tax invoices, and more.

-The VAT returns should be filed in the timely manner. The FTA allows for quarterly tax periods, in which the returns must be filed to avoid deductions and penalties. Given the change of weekends in the UAE – it’s important to be in touch with your VAT consultants in the UAE to ensure compliance.

-Incase of any payable taxes, VAT registrants must settle it on the return filing date, to avoid delay payments. It’s best to stay on top of your VAT filings and pay your taxes well ahead of the due dates.

-Some of the goods and services carry a 0% VAT rate, which include international transportation, investment-grade precious metals, some education & healthcare services and more. Your VAT filing consultants in the UAE can guide you on this topic.

Are you a business worried about VAT compliance and related delays? Well, TRC Pamco is here to help you. Being a reputed consulting firm, they can assist you with VAT filing, VAT health check services, clarification and exemption on VAT, double tax avoidance, tax residency certificate, VAT refunds, VAT registrations/deregistration, voluntary disclosure and more. Reach out to them to know more!

How To File a VAT Return in Dubai?

 Once you have registered for VAT, you need to do a VAT return filing in Dubai, to the Federal Tax Authority at the end of each tax period. As per FTA, it should receive the VAT return not later than the 28th day, following the end of the tax period. Non-filing of VAT returns has major implications on businesses, where they must bear heavy fines, so it’s best to undertake VAT advisory services if you want to save yourself the trouble of taxes and non-compliance. 

What does the VAT return filing form in Dubai contain? The name, address and the TRN of the Registrant, tax Period related to the VAT Return filing, the date of submission of UAE VAT Return, value of Taxable Supplies made by the Person in the Tax Period and the Output Tax charged and Emirates-wise, value of Taxable Supplies subject to the zero rates made by the Person in the Tax Period, the value of Exempt Supplies made by the Person in the Tax Period, the value of any supplies subject to Clauses (1) and (3) of Article (48) of the Decree-Law (Reverse Charge), the value of expenses incurred in respect of which the Person seeks to recover Input Tax and the amount of Recoverable Tax, the total value of Due Tax and Recoverable Tax for the Tax Period and the Payable Tax for the Tax Period.

To undertake VAT returns, below are steps one needs to follow:

    -    Collate and compile all the transactions in a format prescribed by the FTA

    -    Develop the summary and consolidated details of all the sales, purchases, including output and input          VAT.

    -    Ensure compliance by undertaking VAT advisory services, to ensure true and fair view

    -    Liaise with FTA registered tax agents in Dubai

At TRC Pamco, the leading vat consultants in UAE,  they assist you in meeting VAT compliance understanding, along with helping you in identifying the areas which require rectification while assuring the accuracy of taxes remitted. They also support companies in meeting tax compliance obligations, optimizing costs, mitigating risks, and avoiding unnecessary penalties due to non-compliance and incorrect documentation.

Getting a Trustworthy Vat Consultancy in Dubai is tough, here is Why TRC Pamco Excels

 Tax issues arise in every business, and they need to be managed effectively to save your organization of any damage. VAT is one of the most important taxes, and to manage it, and ensure your organization follows the rules and regulations, a VAT consultant is necessary. They control the VAT position of your company and ensure your business stays on track while achieving maximum efficiency.

What are the benefits of efficient and effective VAT services in Dubai?

• Maximizing VAT recovery: They help you find VAT recovery opportunities, given the experience they bring to the table.

• Managing Cash Flow: VAT firms in Dubai help minimize the time of analysis, assessments, and measurements of risks regarding revenues and payments, thus also aligning the cash flow.

• Avoiding Absolute Costs: VAT consultants are aware of the processes involved, thus saving you time and effort, while getting the job done well.

How can TRC help you?

• Facilitate easy VAT registrations: VAT registrations are mandatory in most cases, and not in some. They advise you on the correct route, along with guiding you on the online registration process, the various formalities, turnover, documents and more.

• Help save time & efforts: They are experts in the field and can save you the effort and assist with timely filing. They file your returns, make the necessary payments while managing indirect taxes as well.

• Offer best advisory services: They have a team full of professionals with experience in the field of accounting, auditing, and business consultancy. TRC Pamco provides excellent VAT services in Dubai.

To know more, get in touch with TRC Pamco – one of the best VAT firms in Dubai. They provide you with assistance in meeting UAE VAT compliance and understanding the causes of non-compliance and address them for the future. They also support companies in meeting tax compliance obligations, optimize costs, mitigate risks, and avoid unnecessary penalties due to non-compliance and incorrect documentation.

Things to Consider Before Reclaiming Your VAT Expenses in UAE

 Under the UAE VAT Law, it is the taxpayer’s responsibility to ensure that the VAT computed, accounted and documentation are in accordance with UAE VAT Laws. To know how you can claim your VAT expenses, first let us understand who can claim input tax.

A person who has registered for VAT is entitled to recover the tax that is incurred on the purchase of goods and services, which are then used to make taxable supplies. 

What are the circumstances in which companies can claim the input tax?

• If businesses are registered under VAT – they can file for a refund. However, the end consumer cannot claim any refunds)

• VAT should have been properly and correctly charged.

• Businesses should be able to produce the proper documentation to show that they have rightfully paid the VAT.

• The claims need to be filed within 6 months of the supply date, on the amount paid.

If your company’s VAT accounts are too detailed and if you need assistance, it is best to indulge in VAT consultancy services in UAE, to ensure a smooth and seamless process for your VAT claims, ensuring there are no discrepancies in your accounting methods.

There are also certain exceptions when it comes to VAT claims, and following are a couple of them:

• If the goods and services on which you paid VAT, are used for the purpose of making non-taxable supplies – you cannot recover the VAT paid on those goods and services.

• If the input tax is related to the capital assets that depreciated before your tax registration, then you cannot claim to the extent the assets have depreciated.

• If the services have been received over 5 years prior to the tax registration date – the input VAT cannot be claimed. However, this is only applicable for services, not goods.

• Before registering for tax, if you transferred the goods to another GCC country – you cannot make refund claims.

If you’re tired of running helter-skelter for your tax refunds, reach out to VAT consultancy experts in the UAE, TRC Pamco – and they can help you rightfully file your claims.