VAT Advisory in UAE

With the introduction of VAT in the UAE from January 01, 2018, there is a need for businesses to have a fresh look at their business. They must see how the VAT will affect their bottom line and re-work their prices if needed. This will need the advice of experts.  Major services under Vat Advisory are given below:-

  • VAT Registration
  • VAT Return Filing
  • VAT Deregistration
  • VAT Refund
  • UAE Tax Residency Certificate

Understanding VAT and Its Effects

VAT stands for value-added tax and as the name suggests this tax applies to the increase in the value of the goods at various stages. It is a kind of indirect tax that people will pay not on what they earn but on what they spend. The VAT has been introduced in the UAE and is applicable at 5%.

All companies with annual earnings of more than AED 375,000 and above will have to register for VAT and would need the services of VAT consultants. We offer VAT Consultancywith our panel of experts on the subject. Companies earning between 187,500 and 375,000 have the option of registering for VAT.

VAT Advisory (Key Points)

  • VAT Registration
  • VAT Return Filing
  • VAT Deregistration
  • VAT Refund
  • UAE Tax Residency Certificate

How does it work?

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 the government reflect the ‘value-added’ throughout the supply chain.

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

What Is Taxed And What Is Not?

Scope of Tax & Rate
RBS provides excellent VAT and Excise Advisory in the UAE for helping companies to incorporate these taxes in their business.

Our VAT services include

Tax Residency (Domicile) Certificate for UAE

tax residency (domicile) certificate, which you’ll sometimes see as a tax domicile certificate, is an official document that the relevant authority will issue to confirm the country of tax residence for a company or legal entity. The Federal Tax Authority will issue the tax residency/domicile certificate. This service is provided to government entities, companies registered, and individuals resident in UAE. For a person to apply for the certificate, he must be a resident in the UAE for at least 180 days and non-residents cannot apply for such services. Companies that have functioned in the UAE for a minimum of one year can apply for the certificate.

RBS Group provides professional assistance in coordination with the FTA (Federal Tax Authority) and availing the tax residency (Domicile) certificate in Dubai, UAE.

Documents Required for Tax Residency Certificate or Tax Domicile Certificate

For individuals:

To apply for a tax domicile certificate individuals must have been a resident in the UAE for at least 180 days. The certificate is not granted to non-residents.

The following documents must be attached:

  • A copy of the passport + valid permit of residence;
  • A copy of ID card;
  • A certified copy of (residential) lease agreement;
  • Validated 6 – month bank statement from a local bank;
  • Source of income / Salary certificate;
  • A report from the General Directorate of Residency and Foreigners Affairs specifying the number of days the resident has stayed in the UAE (Minimum 180 days) ;
  • Tax forms (if any) from the country in which the certificate is to be submitted.

For investors:

The company license including partners’ names should be attached + previously mentioned documents.

For companies:

To apply for tax domicile certificates, the company must have exercised its activity in the UAE for at least one year:

  • A copy of the trade license and partners’ attachment;
  • Establishment contract certified by official authorities (if it is not a Sole Company);
  • A copy of the company’s owners/partners/directors’ passports, ID, permit of residence;
  • A certified copy of the audited financial accounts ;
  • A validated 6 – month bank statement;
  • A certified copy of the lease agreement;
  • The organizational structure of the company (if it is not a Sole Company);
  • Tax forms (if any) of the country in which the certificate to be submitted.