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VAT consultants in Dubai

Business services in Dubai

The introduction of VAT in 2018 shook things up for UAE businesses. Navigating this indirect tax and ensuring proper accounting and filing can feel like a maze. That's why many companies are turning to VAT consultants for expert guidance.


But accounting goes beyond just VAT compliance. While filing audit reports might not be mandatory for all UAE authorities, smart businesses understand the value of keeping their books in order. Here's why:


Clarity is king: Clear and accurate financial records give you a bird's-eye view of your income and expenses. This empowers you to make informed decisions about future investments and spending, avoiding any nasty surprises.


Plan like a pro: With a firm grasp on your finances, you can create realistic budgets and forecasts. This helps you anticipate challenges, seize opportunities, and steer your business towards success.


Peace of mind, delivered: Imagine facing an unexpected audit without proper records. Not fun! Regular accounting ensures you're always prepared, saving you stress and potential penalties.


Remember, accounting isn't just about numbers; it's about empowering your business to thrive. So, embrace the post-VAT landscape with confidence and make informed choices for your future. And if you need a helping hand, don't hesitate to seek guidance from VAT consultants or accounting professionals. They're there to equip you with the knowledge and tools to navigate the financial world with ease.

VAT rules in UAE

Living the dream in the UAE? Great! But before you get caught up in the business whirlwind, understand one crucial thing: VAT. Here's a simplified guide to ensure you stay compliant and avoid any tax headaches:


Not all that glitters in free zones is VAT-free: While setting up a company in a free zone might sound tempting, remember, it doesn't automatically exempt you from VAT. The only truly VAT-free entities are JAFZA and RAK offshore companies, as they can't do business locally within the UAE.

Reaching the magic number? Register, file, and pay: If your onshore company makes sales within the UAE and crosses the AED 375,000 mark in annual turnover, you're officially VAT liable. This means registering with the Federal Tax Authority (FTA), filing quarterly reports, and paying 5% VAT. Remember to add that 5% to your invoices!


Making payments a breeze: Opening a bank account in Dubai simplifies VAT payments. So, breathe easy, knowing you have a convenient way to fulfil your tax obligations.


VAT compliance isn't just about following the rules; it's about avoiding penalties and ensuring smooth business operations. Don't wait until the taxman comes knocking – get informed and stay VAT-savvy!


Running a business in the UAE is exciting, but navigating VAT regulations can feel like walking a tightrope. Don't worry, we've got your back! Here's how to avoid VAT-related frowns and keep your finances sunny-side up:


1. Steer clear of fines: The UAE takes VAT compliance seriously, and penalties can bite. Ensure you follow all FTA regulations to avoid unpleasant surprises. Think of it as following the map to financial peace of mind.


2. Invoice like a pro: Every invoice you issue needs to be picture-perfect, following specific guidelines. A single mistake can land you with a 5,000 AED penalty. Ouch! Double-check those invoices before sending them out.


3. Register wisely: Not all businesses need to register for VAT. Before signing up, make sure you understand the rules and only register if required. Incorrect registration can lead to unnecessary fines – avoid that financial sandtrap!


4. Don't forget to deregister: Closing shop? Remember to officially deregister your company with the FTA. Skipping this step can result in a hefty 10,000 AED fine. Don't let your final goodbye come with an unexpected bill.


Following VAT regulations isn't just about avoiding penalties; it's about being a responsible business owner. By staying compliant, you protect your company's finances and ensure smooth operations. So, keep these tips handy, navigate the VAT landscape with confidence, and let your business shine!

FAQ about VAT in UAE

Q: What is the UAE VAT registration threshold?
A: The mandatory registration threshold is 375,000 AED. It means that when your local UAE turnover reaches this number or you expect it to be reached in the nearest month, you should register for VAT.

Voluntary registration threshold is 187,500 AED. Voluntary registration is done by the businesses who are planning to claim back VAT which they paid for their corporate expenses, for example office fitout and furnishings.


Q: How and when can I do VAT de-registration?
A: VAT de-registration should be done in 2 cases:

You closed the business

Your sales are no longer VAT liable

If you close the company, you should apply for VAT de-registration right away to avoid penalties for late de-registration.

In case your business model has changed and you are not supposed to pay VAT in UAE, it is better to take qualified advice and then apply for de-registration. The process may take a few months since the Federal Tax Authority will need to check if your business is really no longer VAT liable.

Q: How can I get VAT registration number for my business?
A: In UAE VAT registration number is not assigned to the business at the time of formation.

Every company liable for VAT must apply for registration through the Federal Tax Authority portal. Registration is usually approved within a couple of weeks. Once it's approved, your unique VAT registration number will be generated and assigned to your business.

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