UAE VAT Consultancy Services

Let's start working on your VAT

Value Added Tax (VAT) in the UAE took effect January 1, 2018. As defined by the Federal Tax Authority (FTA), this is a tax imposed on the import and supply of goods and services at each stage of production and distribution, including the deemed supply. Needless to say, VAT is an indirect tax imposed on each stage of the supply chain, which in effect businesses will be collecting taxes on behalf of the government.

Hence, management of VAT obligations and its implications to the busines in general has been pivotal. In-house VAT expertise is often not enough to navigate on VAT complexities. INTANGIBLES has a community of trained and highly skilled tax experts. Our VAT consultancy service will tailor a specialized review of your current tax position and assess its impact on your business and ensure regulatory compliance.

Snippets of UAE VAT Law

A business must register for VAT if their taxable supplies and imports exceed the mandatory registration threshold of AED 375,000.
A business may choose to register for VAT voluntarily if their supplies and imports are below the mandatory registration threshold, but exceed the voluntary registration threshold of AED 187,500.
Similarly, a business may register voluntarily if their expenses exceed the voluntary registration threshold.
VAT is levied on the supply of all goods and services, including food, commercial buildings and hotel services, if no explicit provision is made to impose a zero rate or an exemption.
Businesses that supply goods or services that are subject to a zero rate are required to register for VAT, but can recover the VAT that they incurred on their purchases.
Businesses that supply tax-exempt goods or services cannot recover the VAT they incurred on their purchases.

Your business obligations

VAT Registration

All existing and new businesses can submit an application with reference to the mandatory and voluntary threshold. Non-registration could entail ﬁnes as stipulated in Cabinet Decision No. (40) of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE.

VAT Return Filing

VAT returns are filed within 28 days after the end of every taxable period. Businesses with an annual turnover above AED150 million are required to file monthly returns whilst businesses with turnover AED150 million and below can file quarterly, as specified on the TRN certificate

VAT Payment

This pertains to the actual payment of VAT payable due for the period, after filing of the VAT return and should be paid before the VAT return deadline as specified in the TRN certificate.

Maintenance of Books & Records

All businesses, registered and unregistered, must retain records such as Balance Sheet, Proﬁt and Loss, records pertaining to ﬁxed assets, payroll, inventory and stock levels, as well as accounting records (payments, receipts, purchases, sales, revenues and expenses).

VAT Fines and Penalties you can Avoid (Reduced)

AED10,000 - failure to register within the specified timeline
AED 1,000 - failure to deregister within the specified timeline, up to a maximum of AED10,000
AED 1,000 - first delay in submission of VAT returns, AED2,000 for subsequent delay within 24 months
AED 1,000 - voluntary disclosure of incorrect VAT return (1st filing)
AED 2,000 - voluntary disclosure of incorrect VAT return (2nd filing)
AED 5,000 - failure to display VAT inclusive prices on invoices
AED 2,500 - failure to issue tax invoice or tax credit note

What we are offering

Accurate & cost-effective VAT consultancy services
VAT impact assessment and analysis on new and existing sources of revenue
Comprehensive tax planning and advices on complex issues to ensure compliance and avoid penalties
A review of your internal controls and procedures including documentations
Clarification drafts to FTA for any new proposed transactions
Training and consultation for your in-house personnel to keep you up to date of any VAT development