Why are VAT consultants in the UAE necessary? What do you really need to prepare for the Value Added Tax? The first requirement is knowledge.
The VAT laws now in effect in the UAE presently call for extensive knowledge of the requirements of the tax. For example, the mandatory registration threshold for businesses is currently AED 375,000. The law requires VAT registered businesses to collect the tax on the government’s behalf. Companies must submit a VAT return at the end of each tax period.
Proper documentation is vitally important. Companies must charge VAT on the taxable goods and services they supply. They may reclaim any tax they have paid on business goods or service. Therefore, special care must be taken to record all sales properly and receive proper documentation from all suppliers.
What goods and services are taxed and which are zero-rated or exempt? Many educational expenses, such as tuition at approved, accredited schools, are zero-rated. Other expenses, however, such as uniforms, recreational school trips, and certain electronic devices, are taxed. Most healthcare services are zero-rated, but elective services and cosmetic procedures are taxed. Certain real estate transactions are not taxed, though sales or rentals of commercial buildings are taxed. The sale of bare land is exempt. These are only a few examples of the many complexities involved in the Value Added Tax.
What are the filing dates for the VAT? Filing dates depend on the annual turnover of the company. For companies with an annual turnover below AED 150 million the standard tax period is quarterly. Annual turnover of AED 150 million or more requires filing returns monthly. It is clear to see that the VAT requirements are numerous and complex. The wisest course of action is to enlist the services of the professionals at Chartered House Tax Consultancy. Chartered House Tax Consultancy can guide you safely through the intricacies of the Value Added Tax and ensure the completion of all legal requirements and best accounting practices. We specialize in tax, audit, advisory, and technology. Contact us today!