The Value Added Tax, or VAT, is a general, broadly based consumption tax assessed on the value added to goods and services. VAT is consumption tax because it is borne ultimately by the final consumer. It is not a charge on businesses. Unified Agreement for VAT– provides a framework for all of the GCC members to follow. In order to do so successfully and create a tax system which works, the need for businesses to invest time and effort in preparing their processes, structures, systems and people will only increase. UAE decided to implement VAT likely w.e.f. 1st January 2018. The Federal Tax Authority will open online registration for tax purposes for businesses in mid-September 2017.

The Excise Tax and VAT laws are expected to be issued during the third quarter of this year and the regulations concerning both laws in addition to federal tax procedures are expected to be issued during the fourth quarter of 2017.

How it works?

VAT is charged at each step of the “supply chain”. Ultimate consumers generally bear the VAT cost while the Business collects and accounts for the tax, in a way acting as a tax collector on behalf of the Government.

A Business pays the government the tax that it collects from the customers while it may also receive a refund from the government on tax that it has paid to its suppliers. The net result is that tax receipts to government reflects the ‘value added’ throughout the supply chain.

VAT will be introduced across UAE on 1st January 2018 at a standard rate of 5%.

To fully comply with VAT, we believe that businesses may need to make some changes to their core operations, their financial management and book keeping, their technology and perhaps even their human resource mix (eg. accountants and tax advisors). The final responsibility and accountability to comply with law is on business.

Our services include

VAT Advisory Services

  1. VAT Planning and structuring
  2. Pre-transitional rulings
  3. VAT Impact Analysis

VAT Implementation Services

  1. VAT end to end roll out.
  2. Implement VAT Accounting system
  3. Invoicing under VAT

VAT Consultancy Services

  1. Understand the business model
  2. VAT Registration
  3. Completion of VAT Returns
  4. Completion of other documentary requirements
  5. VAT Audit

Awareness program & Training

  1. Basic VAT skills (who accounts for VAT, tax points, liabilities)
  2. Industry specific workshops.