Value Added Tax (VAT) in United Arab Emirates

 Value Added Tax or VAT is a tax on the consumption or use of goods and services levied at each point of sale. VAT is a form of indirect tax and is used in more than 180 countries around the world. The end-consumer ultimately bears the cost. Businesses collect and account for the tax on behalf of the government. VAT, as a general consumption tax, will apply to the majority of transactions in goods and services. A limited number of exemptions may be granted.

Implication of VAT on businesses

Businesses will be responsible for carefully documenting their business income, costs and associated VAT charges. Registered businesses and traders will charge VAT to all of their customers at the prevailing rate and incur VAT on goods/services that they buy from suppliers. The difference between these sums is reclaimed or paid to the government.

VAT Consulting

Eminent Accounting Services is an industry-leading accounting and VAT consultancy firm offering comprehensive VAT Tax Consultancy and VAT Return Filing solutions to companies all over the UAE. We help educate businesses on the financial impact of Value Added Tax to goods and services, and the measures they can take to mitigate the effects. We can guide businesses on the steps to proper VAT compliance and adoption, including the necessary updates to accounting systems and databases.

VAT Registration

All businesses in United Arab Emirates with annual revenue of Dh 375,000 or more are required to register their company with Federal Tax Authority. With the usual processing and administrative issues, Eminent Accounting Services can provide the necessary support to facilitate the entire VAT registration process and make it as simple as possible.

VAT Accounting

With our expert professionals at Eminent, we can help our customer with the best available solution as per their requirement. Our VAT Accounting services includes

    • Assistance to select and implement best ERP/Accounting software.
    • Preparation of VAT Invoices specifically designed for sale of VAT eligible products.
    • TAX Calculation.
    • Managing account books.
    • Calculate VAT deductibles on purchases.
    • Assisting remittance of net VAT amount to Authorities.
    • Maintain documents relevant to VAT procedures (Invoices, records, accounts, bills, VAT return, etc.) as VAT accounting requires meticulous documentation and records to be kept handy by organizations for later scrutiny by the government authorities.
    • Calculating refund claim.
    • Filing of monthly/quarterly VAT returns.