Since January 1, 2018, the United Arab Emirates (UAE) has enforced a 5% Value Added Tax (VAT) on goods and services in line with the GCC agreement. The VAT is an indirect tax, which is mandatory for those businesses whose goods and services (excluding any exempt supplies) amount exceed AED 375,000 in 12-month period.
In this article, we have briefly explained the steps for implementing VAT in your business to provide you with help in the successful completion of the VAT process.
Steps To Be Taken While VAT Implementation:
Outlined below are the steps to be followed by business entities seeking to Implement VAT and establish VAT-compliant processes and systems within their operations:
1. VAT Registration
- Compile and verify all necessary information for registration.
- Complete the online registration process for UAE VAT with the Federal Tax Authority.
2. Understand The Organization Structure:
- Deliver preliminary training and awareness sessions for management and employees.
- Gain insight into the organizational structure.
- Familiarize with business operations.
- Conduct discussions on proposed changes with IT, Accounts, and all other pertinent departments.
3. Analyze The Impact of VAT On Business
- Examine your financial statements to assess the VAT implications on your business.
- Identify any specific issues within the software you are currently utilizing.
4. Manage The VAT Transition Process
- Initial trial run for issue identification.
- A concluding trial run was conducted in preparation for VAT compliance.
5. VAT Return Filing
- Examine issued and received TAX invoices.
- Examine issued and received TAX credit notes.
- Balancing ledgers and registers through reconciliation.
- Compilation of VAT returns.
- Compilation of VAT Audit File.
By following the above steps, businesses can implement VAT for their businesses in UAE The VAT implementation will help you secure your business from heavy fines and penalties set by FTA in UAE.
Our VAT Services:
To get rid of the fear of fines and penalties, the best way to successfully implement VAT for your business in the UAE is to hire a VAT consultant. Now Consultant has established a dedicated department for managing VAT in the UAE. We assist clients through various VAT awareness programs, seminars, and workshops. We offer VAT advisory, implementation support, business registration, and assistance with filing VAT returns.
