With the increased globalization and growing popularity of Value – Added – Tax (VAT) in UAE it has become more important than ever to have a cohesive strategy in place to reduce the overall tax exposure and optimize cash flow. The VAT framework in UAE is rapidly changing and it can become a daunting task to keep up with the latest developments and if not handled diligently it can lead to unnecessary fines and penalties which can put financial stress on companies. While VAT is not tax on the business itself, collecting the tax and remitting it to the government will have business implications. Supply chains of companies need to be reviewed to understand the impact of VAT.
There are also implications for IT systems. Adapting to VAT will mean updating or upgrading the accounting software and interfaces to correctly capture input and output VAT. Governance frameworks will also need to be reviewed and updated to ensure policies, processes and controls comply as well as continue to comply – with VAT legislations.
Our wide-ranging VAT Services include:
Our specialists can provide client focused advisory services on VAT related matters such as:
Once a company meets a pre – determined mandatory or voluntary threshold they should proceed to register for VAT. Only after VAT registration can they charge VAT on sales and recover VAT on their purchases for the purpose of VAT filing with the FTA. On the other side of things, a company may need to de – register from VAT on either a voluntary or mandatory basis if certain pre – requisite conditions are met. The whole process of VAT registration & de – registration can be cumbersome and confusing and if not done at the right point of time can lead to complications. Our VAT experts will take this burden away from you and take full accountability of the entire process to ensure that it is completed in a cost effective and timely manner.
As part of this service, we help companies design and structure their internal control and reporting systems to be compliant with the VAT Laws. VAT Implementation is extremely crucial as it lays the foundation for a company’s current and future VAT compliance. If this process is not done right, the entire VAT framework of the company could be in jeopardy that could potentially even lead to the company not being a going concern. We help companies identify and address all business issues that may arise during the VAT implementation process and thereby develop a proactive approach to minimize any disruption to businesses. We also ensure that the implementation process is benchmarked against best industry practices based on our experience. Our approach manages the implementation in a structured and strategic way.
Our tax accountants will help gather and compile the financial information that is required to file the VAT returns on either a quarterly or a monthly basis. As part of this we will review and verify VAT related transactions to evaluate the correctness of the VAT amounts being recorded in the books of account. We will then assist in preparing the VAT returns as per the FTA rules and regulations and ensure that VAT Filing is done in a timely manner while also ensuring adequate documentation of transactions for record – keeping.
The objective here is to make entities ready for any kind of audits on their tax affairs that may be conducted by the FTA. Through a VAT Health Check Up we aim to identify key VAT Compliance areas where more attention is required. This will involve evaluating the effectiveness of the company’s overall VAT environment and also reviewing and analyzing previously filed VAT returns in order to assess how far the company is compliant with the VAT regulations and then make recommendations for a corrective course of action as against all issues identified.
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