Value Added Tax (VAT)
IOA can help your company comply with new VAT requirements, such as:
- How to charge VAT on supplies at the correct rate.
- How to calculate the overall net amount of VAT for payments or refunds.
- Submitting VAT/ returns showing the required information.
- Paying the net amount of VAT due within the prescribed deadlines.
- Keeping the correct documentation in relation to invoices, records, account, VAT returns, and more.
IOA can help your company comply with new VAT requirements, such as:
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To Enable
VAT will apply to the majority of transactions in goods and services. A limited number of reliefs may be granted. However it is expected that only utilities like healthcare and education may be exempted from the tax. The VAT rate is expected to be around 5%. A business must register for VAT if their taxable supplies and imports exceed the mandatory registration threshold of AED 375,000. Furthermore, a business may choose to register for VAT voluntarily if their supplies and imports are less than the mandatory registration threshold but exceed the voluntary registration threshold of AED 187,500.
Similarly, a business may register voluntarily if their expenses exceed the voluntary registration threshold. This latter opportunity to register voluntarily is designed to enable start-up businesses with no turnover to register in VAT.
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VAT Registration
We offer complete services of VAT registration for our clients. We will review our client’s business activities to identify whether a registration is required.
We will conduct the following activities to ensure our client’s satisfaction:
- Complete outsourced solution
- Complimentary assessment of VAT registration obligations
- Advice on registration dates and types
- Guidance on the documentation and information required
- Translation services where required
- Review of all relevant registration material
- Preparation and submission of all application forms
- Setup on online submissions portals
- Managing all correspondence with the tax authorities
VAT Compliance Management
The periodic compliance of VAT and the payment of VAT is extremely important. The tax authority imposes strict and high penalties for incorrect submissions of VAT returns and late payments of VAT due.