Steps of filing VAT return in UAE!

Tax services

The submission of a document including details on VAT-related sales and expenses that took place during a specific tax period is referred to as VAT return filing in UAE. Businesses can calculate how much VAT they must pay and start the procedures for reclaiming or refunding VAT by filing VAT returns in the UAE. Businesses must use the Federal Tax Authority (FTA) website to submit their VAT returns.

Read the instructions for completing a VAT return if you want to learn more about VAT:

  1. Register with the Internal Revenue Service: A VAT-registered business entity in the UAE has to have a Federal Tax Authority account (FTA). To start the filing process, the account is required. Employing a licensed tax agent in the UAE to set up an FTA account is necessary to ensure that all data provided to the tax office is accurate.
  2. Give the FTA Information to the Taxable Person: A taxable person is a legal entity that has registered for VAT. The next stage is to furnish the regulatory body with information regarding the firm’s name, address, and tax registration number, or TRN, after beginning the VAT return filing process by opening an FTA account. If a UAE-licensed tax adviser is hired to help with the process, the specialist may enter the relevant information on the business’s behalf.

VAT Return Filling – ASP Auditing Dubai

  1. Provide Detailed Accounting: The FTA must be provided with all pertinent data on a company’s VAT sales and expenses for a single fiscal year. Additionally, information on costs spent at the current VAT rate of 5% must be included.
  2. Provide net VAT Calculations as a result of the FTA: The Company must also provide estimates of net VAT owing after the details on VAT sales, expenses, and related inputs have been received. The VAT due amount that is greater than what may be recovered must be paid to the tax authorities. The difference can be paid back through the VAT refund or reclaim process if the recoverable amount is greater than the FTA.
  3. Make a Formal Declaration: A corporate organization must exercise caution while filing VAT returns to the Federal Tax Authority of the UAE. False information can incur fines of up to tens of thousands of dirhams. One strategy to prevent accruing significant fines and penalties in the UAE is to hire a licensed tax agent or VAT expert.

 

An expert may guarantee that the company has provided verifiable information, preventing punishment. Additionally, the professional may help you complete the treatment with little to no involvement from you. A tax-controlled agent in Dubai is also familiar with VAT law and the implementation of any steps the UAE’s tax authorities may need. If you want to file VAT returns as soon as possible, don’t be afraid to give RBS Auditing a call. You may get the services you need from our professionals. In addition to submitting VAT returns, we can provide you with Dmcc free zone approved auditor or liquidation services in Dubai. Please get in touch with us; we’d be happy to help you with any of the following services.

 

 

 

 

VAT Registration and VAT Return Filing service in Dubai

VAT

VAT registration method in UAE for brand new corporations was created obligatory for all businesses with Associate business. The new rule has gained momentum from each the general public and community. VAT registration in UAE involves a group of procedures that should be followed by a person/business to register with the Federal Tax Authority (FTA). Our team of RBS Auditing specialists is trained & appointed to fast-track the method and guide them through an equivalent to make sure that each rule & tip is complied with lawfully.

VAT registration in UAE
VAT registration in UAE

Set out to provide seamless expertise with UAE VAT registration online, our cluster of pros expertly & proven record can begin from the fundamentals of VAT tips to providing end-to-end services in VAT registration & filing.

They are intelligent concerning the newest norms set by the Federal Tax Authority and are equipped to supply you with timely help altogether matters associated with VAT.

 

Our Services

VAT Registration UAE

Our team of skilled tax professionals can facilitate in coping with tax-related problems to hurry up the processes for company formation within the UAE. We provide our purchasers with the foremost customized and practical solutions, guidance, and support in VAT registration in UAE.

 

Accounting Services

The key to success for a corporation is to stay a track of accounting, invoicing, and maintaining records. Our accounting partners are dedicatedly operating for the consumer in maintaining clerking. The knowledgeable accountants can also assist them by submitting documents, checking the accuracy, keeping & accounting funds, sharing tips, and being compliant with the law.

 

VAT Filing

Make intelligent business choices by maintaining Associate false accounting of books. Audit reports are created as per the wants recommended by the clients. We offer audit report services for corporations in areas within the UAE to renew their business license, company closure, or for a gap checking account.

 

Why select RBS Auditing 

VAT practice service

Our dedicated team of pros brings Associate in perspective to every challenge, vocation upon years of advantages experiences in various businesses and industries, and mixing their abilities and purpose, insights and intuitions, creativity, and usefulness.

 

Best business data

We have an Associate in a knowledgeable team of hired Accountants VAT consultants in the urban center & monetary Consultants; World Health Organization have many years of business data and experience and are continuously committed to victimization their experience to our client’s growth.

 

Customize solution

Each consumer and every business is different. Our experience of Vat Return Filing In UAE practice lies in delivering the customized answer that suits your gift and future business needs.

 

UAE to introduce 9% corporate tax on business profits from June 1, 2023

corporate-tax

Ministry of Finance to introduce federal corporate tax on business profits, effective for financial years starting on or after 1 June 2023

ABU DHABI, 31st January, 2022 (WAM) — The Ministry of Finance has announced that the UAE will introduce a federal corporate tax on business profits that will be effective for financial years starting on or after 1st June 2023. Businesses will become subject to UAE corporate tax from the beginning of their first financial year that starts on or after 1st June 2023.

The UAE corporate tax regime has been designed to incorporate best practices globally and minimise the compliance burden on businesses. Corporate tax will be payable on the profits of UAE businesses as reported in their financial statements prepared in accordance with internationally acceptable accounting standards, with minimal exceptions and adjustments. The corporate tax will apply to all businesses and commercial activities alike, except for the extraction of natural resources which will remain subject to Emirate level corporate taxation.

With a standard statutory tax rate of 9 percent and a 0 percent tax rate for taxable profits up to AED375,000 to support small businesses and startups, the UAE corporate tax regime will be amongst the most competitive in the world.

No corporate tax will apply on personal income from employment, real estate and other investments, or on any other income earned by individuals that does not arise from a business or other form of commercial activity licensed or otherwise permitted to be undertaken in the UAE.

“As a leading jurisdiction for innovation and investment, the UAE plays a pivotal role in helping businesses grow, locally and globally. The certainty of a competitive and best in class corporate tax regime, together with the UAE’s extensive double tax treaty network, will cement the UAE’s position as a world-leading hub for business and investment”, said Younis Haji Al Khoori, Undersecretary of the Ministry of Finance.

Younis Haji Al Khoori further adds that “with the introduction of corporate tax, the UAE reaffirms its commitment to meeting international standards for tax transparency and preventing harmful tax practices. The regime will pave the way for the UAE to address the challenges arising from the digitalisation of the global economy and the other remaining BEPS [Base Erosion and Profit Shifting] concerns, and execute its support for the introduction of a global minimum tax rate by applying a different corporate tax rate to large multinationals that meet specific criteria set with reference to the above initiative.”

Recognising the contribution of free zones to the UAE’s economy and competitiveness, the UAE corporate tax regime will continue to honour the corporate tax incentives currently being offered to free zone businesses that comply with all regulatory requirements and that do not conduct business with mainland UAE.

Given the position of the UAE as a global financial centre and an international business hub, the UAE will not impose withholding taxes on domestic and cross border payments, or subject foreign investors who do not carry on business in the UAE to corporate tax.

As an international headquarter location, a UAE business will be exempt from paying tax on capital gains and dividends received from its qualifying shareholdings, and foreign taxes will be allowed to be credited against UAE corporate tax payable.

The UAE corporate tax regime will have generous loss utilisation rules and will allow UAE groups to be taxed as a single entity or to apply group relief in respect of losses and intragroup transactions and restructurings.

The UAE corporate tax regime will ensure the compliance burden is kept to a minimum for businesses that prepare and maintain adequate financial statements. Businesses will only need to file one corporate tax return each financial year and will not be required to make advance tax payments or prepare provisional tax returns. Transfer pricing and documentation requirements will apply to UAE businesses with reference to the OECD Transfer Pricing Guidelines.

“The introduction of a corporate tax regime will help the UAE achieve its strategic ambitions and incentivise businesses to establish and expand their activities in the UAE,” said Younis Haji Al Khoori.

UAE businesses will be given ample time to prepare for the introduction of corporate tax in the UAE. The UAE Ministry of Finance plans to issue further information on the UAE corporate tax regime toward the middle of the year to help businesses get ready and be fully compliant.

*For further information, please visit the Federal Tax Authority website: https://tax.gov.ae/en

Courtesy:-  https://wam.ae/en

Redetermination of penalties equal to 30% of the total unpaid penalties, pursuant to Cabinet Decision 49 of 2021 on the Administrative Penalties for Violation of Tax Laws in the UAE:

Tax Reduction in the Penalties

 

Redetermination of penalties equal to 30% of the total unpaid penalties

31 December 2021 is the due date to avail the benefit of the Tax Penalties Amnesty or Redetermination of penalties pursuant to Cabinet Decision 49 of 2021 (the Redetermination of penalties equal to 30% of the total unpaid penalties).

To benefit from the tax penalties amnesty or redetermination, all of the following conditions have to be met according to Article 3 of Cabinet Decision 49 of 2021 on the Administrative Penalties for Violation of Tax Laws in the UAE:

  1. Any of the administrative penalties set out in Cabinet Decision No. 40 of 2017 have been imposed on the person before the effective date of Cabinet Decision No. 49 of 2021 (i.e. before 28 June 2021);
  2. The person has not settled all the administrative penalties imposed on it as per Cabinet Decision No. 40 of 2017 in full before 28 June 2021
  3. The taxable person has undertaken all of the following:
  • Settled all payable tax, i.e. the registrant shall ensure that by 31 December 2021, no payable tax is still outstanding whether such tax was payable before or after 28 June 2021, and that all such amounts have been received by the FTA by 31 December 2021; and
  • Settled 30% of the total unsettled administrative penalties referenced above which were imposed before 28 June 2021, no later than 31 December 2021.
  • In order to avail the tax amnesty benefit, ensure that all of the above mentioned conditions are fulfilled.
  • All payable taxes is the tax payable (based on tax returns submitted and any adjustments due to voluntary disclosures or tax assessments) that is still outstanding whether such tax was payable before or after 28 June 2021.
  • 30% of the total unsettled administrative penalties refer to the administrative penalties imposed prior to 28 June 2021 pursuant to Cabinet Decision No. 40 of 2017.
  • All the payable taxes and 30% of the administrative penalties must be settled by 31 December 2021.
  • The amount to be settled as per Cabinet Decision No. (49) of 2021 may be viewed by logging into your E-services account and by clicking the option: “Click Here” to view the Amendment of Administrative Penalties imposed as per Cabinet Decision No. 49 of 2021.
  • Please ensure that the payment transfer(s) reflect on the FTA portal by 31 December 2021 and the payment receipts are available to substantiate the transfer.

VAT CONSULTANCY SERVICES IN SHARJAH TRACK RECORD OF AUDITING DATA

Vat

Vat Consultancy Services In Sharjah are trusted and licensed professionals who offer all-inclusive Tax Services for VAT Registered Businesses since UAE commenced with Tax.  They can inform businesses on the fiscal impact of the tax on goods and services, and the safety measure taken to alleviate the effects.

Vat & Excise Consulting In UAE, UAE has the ability to deal with their VAT dealings by fulfilling with VAT law and recommend on associated transactions. Let us know how VAT consultants assist to make the whole VAT procedure easy and hassle-free.

Reasons for hiring a VAT Consultant:

Most of the companies are not known with the rules and regulations of estimating VAT and the procedure of payment. The companies should look for the direction of top VAT consultants in UAE, despite of striving with the complex formulas, complex numbers and wrong calculations. Other major reasons for hiring VAT consultants are mentioned below:

Superior Knowledge:

The top VAT consultants come with greater knowledge about the whole thing associated to VAT. This proves to be advantageous particularly for those who don’t have any skills abbot VAT. Vat Consultancy Services In Sharjah The consultants who are knowledgeable with VAT laws & rules will be able to teach taxpayers about different VAT rates and the correct way to compute payment.

Accuracy:

VAT consultants take the added endeavour to make sure that every VAT filed is cross-checked for precision. The information experiences thorough confirmation with the help of the digital structure as well as manual reviews. This is the approach the precision of data is maintained.

Experience:

A well-experienced VAT consultant, who has survived in the industry for a long period, and can avoid the common errors done throughout the VAT return in UAE / filing process.

Time saving:

Reason for choosing a VAT professional is that it reduces the time necessary for analysis, assessments and evaluating the risks related with the company.

Audit ready records:

They also help in making files and maintain record correctly to get ready for vat audits.

UAE- NEW LAW ALLOWING FULL FOREIGN OWNERSHIP OF ONSHORE COMPANIES TAKES EFFECT ON JUNE 1

Dept. of economic development
The UAE’s Ministry of Economy has confirmed that the amended legislation permitting foreign investors and entrepreneurs to establish and fully own onshore companies, will come into effect from June 1.
Amendment to the Commercial Companies Law will ‘boost country’s competitive edge and facilitate business’, according to UAE Minister of Economy
Minister of Economy Abdullah bin Touq in a tweet confirmed that the latest decision is a new step that reflects the UAE government’s commitment to supporting the economy and enhancing its readiness for the future.
In November 2020, the UAE announced that the of businesses would take effect from December 1, 2020. However, after widening the scope of sectors eligible for full ownership by foreign investors, the law is now ready for roll out from June 1, 2021.
The long-anticipated and widely discussed reform, which will have game-changing implications on the investment landscape of the nation, was approved by President His Highness Sheikh Khalifa bin Zayed Al Nahyan last year.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has said the UAE now enjoys a fertile legislative environment for foreign direct investors in order to enhance the nation’s competitiveness.
Last month, the UAE’s Ministry of Economy also said it was working on a new legislation to include 10 new sectors to the Commercial Companies Law, which allows 100 per cent foreign ownership of onshore companies in the country.

TEMPORARY ZERO-RATING OF CERTAIN MEDICAL EQUIPMENT

On 1 September 2020, the Cabinet issued a Cabinet Decision No. 9/12 O of 2020 (“Cabinet Decision”). The Decision concerns the temporary application of VAT at the 0% rate on certain supplies and imports of medical equipment. Furthermore, the Ministerial Decision No. 380 of 2020 (“Ministerial Decision”) issued by the Minister of Health and Prevention on 6 December 2020 (with effect from 1 September 2020) specifies the medical equipment that are zero-rated in accordance with the Cabinet Decision. In accordance with Cabinet Decision No. 15/3 O of 2021, the above decisions shall be effective until 31 December 2021.
In accordance with the Cabinet Decision, a supply or import of certain medical equipment may be zero-rated. It should be noted that that the zero-rating of supplies and imports under the Cabinet Decision is separate, and in addition to, zero-rating of any other medical equipment in accordance with Cabinet Decision No. 56 of 2017 on Medications and Medical Equipment Subject to Tax at Zero Rate.
On 1 September 2020, the Cabinet issued a Cabinet Decision No. 9/12 O of 2020 (“Cabinet Decision”). The Decision concerns the temporary application of VAT at the 0% rate on certain supplies and imports of medical equipment. Furthermore, the Ministerial Decision No. 380 of 2020 (“Ministerial Decision”) issued by the Minister of Health and Prevention on 6 December 2020 (with effect from 1 September 2020) specifies the medical equipment that are zero-rated in accordance with the Cabinet Decision. In accordance with Cabinet Decision No. 15/3 O of 2021, the above decisions shall be effective until 31 December 2021.
In accordance with the Cabinet Decision, a supply or import of certain medical equipment may be zero-rated. It should be noted that that the zero-rating of supplies and imports under the Cabinet Decision is separate, and in addition to, zero-rating of any other medical equipment in accordance with Cabinet Decision No. 56 of 2017 on Medications and Medical Equipment Subject to Tax at Zero Rate.
The “medical equipment” to which the temporary zero-rating rules apply are personal protective equipment used for the protection from Covid-19, and which contain the features and meet the specifications determined and specified by the Ministerial Decision. Such medical equipment are limited to:
  • Medical face masks that are not included in the Cabinet Decision No. 56 of 2017 on Medications and Medical Equipment Subject to Tax at Zero Rate (of approved standards 14683 and UAE.S ASTM F2100);
  • Half filtered face mask (UAE.S EN 149);
  • Chemical disinfectants and antiseptics intended for use on the human body, but excluding detergents, cosmetics and personal care products (UAE.S EN 1276, EN 1650, and EN 14476:2013+A2).
  • Non-Medical “community” face mask made from textile (UAE.S 1956);
  • Chemical disinfectants and antiseptics intended for use on the human body, but excluding detergents, cosmetics and personal care products (UAE.S EN 1276, EN 1650, and EN 14476:2013+A2).

CONDITIONS TO ZERO-RATING

Date of supply/import of above mentioned medical equipment shall be within the period beginning from 1 September 2020 to 31 December 2021.

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HIRING THE REPUTABLE VAT & EXCISE CONSULTANTS IN DUBAI CORRECT THE TAX POLICIES

Vat Consultants
Vat & Excise Consultants In Dubai mainly classifies, assists and highly recommends to companies or individuals about the filing of taxes and returns. If you have a business, there are plenty of benefits to hiring one.

The Vat Consultancy Services In Dubaiare all experts who can send the customer looking for the service to save more money while fulfilling all the terms and conditions done mandatory by the government. There are two main classifications of consultants based on their speciality — personal tax consultants and corporate tax consultants. Both types of consultants have lots of duties. Vat & Excise Consultants In Dubai The main aim of any consultant is to ensure that his client’s taxes are set aside to a least. A good consultant provides the correct guidance and essential information to result in highest savings while following all the formalities.

Also Read :- Audit Firms In UAE

Here are some of important benefits of hiring a tax consultant/Chartered Accountants in Dubai:

  • 1) The complicated and precise words of tax policies can be sensibly mystifying for a common person. A tax consultant is an expert in understanding the details of these systems and thus consultants make filing taxes in an easier way by simplifying the rules for a layman.
  • 2) Consultants experience extensive training to augment know-how in reading and interpreting official papers which make them knowledgeable professionals to deal with taxes.
  • 3) Consultants have endless knowledge and clear understanding of government and banking policies that let them to guide you in taking the precise investments.
  • 4) The information that it is not a key reason to be uninformed of the law can draw serious penalties if there is a small error in the filing of tax returns. Revenue Service can explore tax returns for flaws in lots of inventive ways ever before as a result it is only careful to hire a consultant that has a professional understanding of tax laws.