Value-Added Tax or VAT is a tax on the consumption or use of goods and services levied at the point of sale. VAT is a form of indirect tax. While it feels exactly the same as a general sales tax to end-consumers, VAT is a more sophisticated tax and overcomes many challenges that affect the general sales tax.
Any business which exceeds mandatory thresholds limit of AED 375,000 should require to register for VAT.
The VAT concept prevailed around the world and in UAE tax was not applicable as they were the free zones. The VAT implementation release enhanced the business brand value and was an additional revenue source for the government. Thus, the GCC countries went into an agreement for VAT implementation that people have to consider the VAT services in Dubai.
UEA has implemented VAT from 2018, 1st Jan, and a 5% tax rate was agreed to be charged. In UAE, the standards of accounting followed as per the Federal Tax Authority referred to as FTA. In 2018, this decision of VAT implementation by the government was a bold step in UAE, that VAT registration in UAE became mandatory.
The government introduced the taxation of VAT to apply to the services and products. There was a need for VAT registration Dubai and with the application and deduction of VAT, there was a need for an Auditor, an Accountant or a VAT consultant in Dubai as mandatory.
As VAT became applicable, monthly audit, yearly or half-yearly audits became a must for small and big businesses in UAE. There was a need for business transaction statements for every day and the findings will be done after the VAT consultants UAE and the financial auditors approval. Thus, the business professionals began hiring in Dubai the auditing services to see growth.
In most companies, over 10 employees mean there is an accountant. Places that have 5 or less than 5 employees do have an accountant. In such situations, outsourcing accounting or seeking in Dubai a financial consultant or a VAT consulting Dubai is unavoidable, as less money is spent on the job done. However, the need has grown by 2019 and in Dubai with the growth of businesses, there is a need for financial consultants.
VAT for companies as per the VAT Law of UAE is a mandate. Registering a business for VAT completes the financial picture during an audit.
Federal Law No. (7) Of excise is a selective tax, which sets the foundations of tax procedures, tax implementation, tax rates, tax obligations, cases of tax exemption, as well as procedures and rules of tax registration and cancellation.
Who should register for Excise Tax in the UAE?
The below-mentioned groups will now have to register for Excise Tax in the UAE
At Fresh Flavour Project Management Services, we offer a full suite of services to address the VAT /Excise challenge, which ensures that organizations remain ahead of the requirements within the UAE, along with supporting the impact which may occur across the wider GCC. Our VAT services help organizations throughout the full life cycle of indirect tax, whilst ensuring our technical experts apply their deep insights which have been gained from implementing and managing VAT in various jurisdictions.
