VAT RETURN FILING SERVICE
Value Added Tax (VAT) is a tax on consumption and it applies to almost all goods and services. As most of the management of the companies might know as part of diversifying the economy and revenue generation, the GCC governments have decided to adopt Value Added Tax (VAT). UAE is also going to adopt VAT which applies to almost all goods and services except basic food items, healthcare, and education. Though the burden normally lies on the ultimate consumer the business entities need to change the systems, processes, and procedures to comply the new legal requirement which has been implemented by the government effective from 1st Jan 2018. VAT is applied at 5% with some limited exceptions including basic food items, healthcare, and education.
A business must register for VAT if their taxable supplies and imports exceed the mandatory registration threshold of AED 375,000.
Furthermore, a business may choose to register for VAT voluntarily if their supplies and imports are less than 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. This latter opportunity to register voluntarily is designed to enable start-up businesses with no turnover to register for VAT.
TAX AGENT SERVICE
As per the definition under the Article (1), chapter one of the Tax Procedures Law of the UAE, Tax Agent is a person who is registered with the Authority in the Register, who is appointed on behalf of another Person to represent him before the Authority and assist him in the fulfilment of his Tax obligations and the exercise of his associated tax rights.
Documents & information required for VAT Registration:
EXCISE TAX REGISTRATION SERVICE
- Before applying for VAT Registration, below mentioned documents are required to be kept ready. The soft copies of the documents should also be uploaded along with the application.
- Documents identifying the authorized signatory e.g. passport copy, Emirates ID
- Trade license copy of the company
- Other official documents authorizing the entity/individual to conduct activities within the UAE e.g. certificate of incorporation, articles of association, power of attorney etc.
- Description of business activities
- Turnover for the last 12 months in AED
- Supporting document for 12-month sales
- Expected turnover in next 30 days
- Estimated value of imports for one year from each GCC countries
- Estimated value of exports for one year to each GCC countries
- Whether you expect to deal with GCC suppliers or customers
- Supporting documents for customs registration in each Emirates if applicable.
- Details of Bank Account
The Registration for Excise Tax in the UAE has started from 17th September 2017. All Taxable entities are entitled to register for Excise tax through the FTA’s online portal. The Excise Tax Federal Decree-Law No. (7) of 2017 in the UAE shall be effective from 1st October 2017. Hence the registration must be done on or before 30th September 2017.
Who should register for Excise Tax in the UAE?
The below-mentioned groups will now have to register for Excise Tax in the UAE
- Producers of Excise goods.
- Importers of Excise goods.
- Stockpiles of Excise goods.
- Warehouse keepers responsible for excise goods.