Category Archives: VAT

VAT Implementation – 3 Phase Process

3process of vat implementation
3process of vat implementation

Phase 1: Impact Assessment

  • Perform detailed analysis of end-to-end business transaction flows
  • Perform walkthrough of the sales/accounts receivable cycle and purchases/accounts payable cycle and identify VAT risk areas.
  • Mapping transaction for VAT enablement (tax mapping)
  • Provide report on VAT compliance needs.
  • Phase 2: VAT Implementation and Training

  • Review existing IT system and assess their suitability for VAT enablement.
  • Review system design and monitor the implementation of the recommend changes to IT systems.
  • Work with inhouse IT team/Vendors to finalize and identify the customizations necessary to be made to IT system to ensure that system meets UAE VAT law requirements.
  • Conduct a function -specific VAT workshop to personnel in preparation to meet the VAT compliance obligations.
  • Phase 3: Compliance Assistance

  • Assist in VAT registration
  • Guidance on first VAT return filing and related documentation and representing tax authorities on VAT issues.
  • Provide Periodic VAT updates
Posted in VAT

VAT Refund On New Residence

vat refund on new residence
  • VAT refund is available for newly constructed residential building in UAE
  • A natural person who is a UAE National is entitled to claim such VAT refund
  • New residence must be used solely as the residence of the person or person’s family
  • Claim must be lodged with the FTA within 6 months from the date of completion of the new building
  • VAT will be reclaimed on building materials and all services incurred for the completion of the building
  • VAT refund claim is subject to conditions, restrictions and procedures prescribed by FTA

استرداد ضريبة القيمة المضافة للمساكن الجديدة

  • استرداد ضريبة القيمة المضافة متاح للمباني السكنية المشيدة حديثًا في الإمارات العربية المتحدة
  • يحق للشخص الطبيعي المواطن بدولة الإمارات العربية المتحدة المطالبة باسترداد ضريبة القيمة المضافة
  • يجب استخدام المسكن الجديد فقط كمسكن للفرد أو لعائلة الشخص
  • يجب تقديم المطالبة إلى الهيئة في غضون 6 أشهر من تاريخ الانتهاء من المبنى الجديد
  • سيتم استرداد ضريبة القيمة المضافة على مواد البناء وجميع الخدمات المتكبدة لاستكمال المبنى
  • تخضع مطالبة استرداد ضريبة القيمة المضافة للشروط والقيود والإجراءات التي تحددها الهيئة الاتحادية
  • للضرائب

Highlights Of Clarification On “Zero Rating of Export Services”

Highlights of Clarification On “Zero Rating of Export Services”

Highlights of Clarification On “Zero Rating of Export Services”

  • The Clarification provides some relaxation to foreign companies as No VAT to them by UAE suppliers just because they have a branch in UAE which are not related with the supplies HO by UAE suppliers.
  • It is also clarified that in determining the location of recipient, only physical presence of the recipient during the periods in which supplier perform services needs to be taken into account
  • The UAT does not recognize any other state as an “implementing state” for the purpose of VAT is also cleared through the clarification.

Why You Need A Firm Instead Of An Employee To Do Your VAT/Taxation ?

tax advisor in uae
  • The firm should be a Tax Agency approved by FTA.
  • A Dedicated division for VAT who are well versed and upto date on all latest developments, notifications and amendments from FTA
  • Taxation team handles different industries and complications so that their experience is surely more than an in-house employee who handles only one type of business.
  • Staff change by leave or resignation or termination will not affect you as the firm will be always there with you.
  • Timely filing of your tax returns to avoid penalties. Be ready to show the books and records to authorities.
  • Assess your tax liability accurately which will enable you to confidently face any queries or audit by FTA.
  • Assistance foryou to get eligible refund of VAT.
  • Advise complications on transactions during the course of your business.
  • Tax planning.
  • Keep your records confidential and hold ownership & responsibility of complete VAT compliance.
  • Training staff for handling tax transactions.

  • “Concentrate In Your Core Business When We Take Care Of Your Taxation.”

     

Most Common Mistakes Seen Among Companies With Respect to VAT

Most Common Mistakes Seen Among Companies With Respect to VAT

Most Common Mistakes Seen Among Companies With Respect to VAT

    • VAT Registration by one not required to register
    • Collecting VAT who is not supposed to collect
    • No VAT-Registration by one who is required to register
    • No VAT filing by registered ones
    • Wrong claim of inputs
    • Collecting VAT and not paying Wrong Classification of nature of Transactions such as Standard rated, Zero rated, exempt and out of scope
    • Determination of date of supply / Time of Supply
    • Determination of Place of Supply Issuing improper Tax Invoice
    • Tax Implications on supply between designated zone and mainland

Most of the cases that we came across are innocent mistakes due to the ignorance.

But ignorance of law is not an excuse and you will end up as a tax evader.

We ask our clients to concentrate on their business and leave their worries to us on amendments and updation in taxation law, returns, refunds, disputes and voluntary Disclosure whatever it be.