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VAT COMPLIANCE IN DUBAI

VAT compliance in Dubai is vital for businesses when registering for VAT. According to the regulations of the VAT, a company needs to compulsorily register for VAT if the annual turnover of the company crosses AED 375,000. If the Annual Turnover is between AED 187,500 – AED 375,000, it is optional for the company to be registered under UAE VAT law. Further, if it is less than AED 187,500/, the company need not register under this law. For the startups, if the VAT attracted expenses are more than AED 187,500/, (USD 50K) such companies are to be registered under the UAE VAT law.

Since this is the first time VAT implementation in Dubai, the companies need to be prepared for the impact, procedures, implementation, and review. There is a need to monitor compliance and suggest improvements required in both systems and staff training.

“VAT contributes towards a more sustainable and diversified economy…”

– Khalid Ali Al Bustani, Director General of the Federal Tax Authority

IMC provides VAT consultancy services in Dubai for the compliance-related queries and assist our clients in reviewing the checklist for VAT compliance in Dubai.

TO-DO-LIST

  • Ensuring whether proper books of accounts are present and updated
  • Check whether your business meets the criteria for registering for VAT collection
  • Registration for VAT
  • Collection of VAT in the invoices raised
  • Keep a record of VAT paid in Invoices of Vendors to avail credit
  • Filing VAT returns and payment of VAT to the Government

IMC also provides VAT training in Dubai for the employees to be well aware and appraised of the procedures and protocols of the accounting system required for VAT filing.

BUSINESS MODEL RESTRUCTURING

  • Redesign supply models to lower the cost of obtaining materials for production and the capital goods
  • Engaging in potential negotiations with vendors and suppliers
  • Rearranging of Human resources structure to ensure that the staff is knowledgeable enough to deal with the trials brought by the new law
  • Reorganize accounting systems and the IT systems to confirm whether there are proper compliance and competency with new requirements

All the companies or the taxable person needs to maintain books of accounts as per the provisions of the UAE VAT law. In addition to that, the tax authority also has the discretionary powers to ask for the additional documents such as annual statements, general ledger, purchase day book, invoices issued; invoices received credit notes, debit notes, VAT Ledger and other evidence of the VAT. As per the newly introduced UAE VAT law the books of accounts and records are to be maintained for five years.

When it comes to VAT compliance in Dubai, you can trust us as your partners who will keep your company 100% compliant with VAT regulations. Our team will be involved at every stage of the process followed by a post-adoption review and continuously updating you about the amendments to the laws.