VAT Consultants in Dubai

The UAE introduced VAT in 2018, significantly impacting how local businesses operate. Many companies in the UAE now seek the assistance of VAT consultants to ensure accurate accounting and proper VAT filing.

While auditing financial reports is not mandatory for most UAE authorities, it’s highly recommended for companies to maintain thorough accounting records. This helps businesses keep track of income and expenses and plan their future expenditures effectively.

VAT Rules in the UAE

All onshore companies in the UAE are liable for VAT. This includes businesses registered in free zones, as they are not automatically exempt from VAT. Only offshore companies (like JAFZA or RAK Offshore) are exempt, as they are not permitted to conduct business within the UAE.

If your business generates a turnover of 375,000 AED or more annually, it must register with the Federal Tax Authority (FTA) for VAT. VAT is set at 5%, and businesses are required to file VAT returns and make payments quarterly.

Remember to add 5% VAT to every invoice once your company is VAT-registered.

Penalties for Non-Compliance

Non-compliance with FTA regulations can result in significant fines. For instance, each incorrect invoice can lead to a fine of 5,000 AED. Additionally, improper registration for VAT can result in financial penalties. If you decide to liquidate your company, failing to deregister with the FTA could lead to a fine of up to 10,000 AED.

VAT Services in Dubai by Visakingsdubai

Visakingsdubai offers comprehensive VAT services to help your business stay compliant, including:

• Monthly accounting services

• Audit report preparation

• VAT registration

• Filing of VAT returns

• On-site accounting support (visiting accountant)

• Preparation of invoices and record-keeping

Visakingsdubai also provides complete business setup services, meaning you can access all the services you need from one provider.

Common VAT Questions Answered by Our Experts

• Do free zone companies need to pay VAT?

• Can an offshore company get a tax registration number?

• How do I prepare VAT reports for the Federal Tax Authority?

• Do I need to pay VAT if my business is conducted abroad?

• Are my invoices issued correctly?

Our team can clarify these questions and much more. Contact us today for a free VAT consultation!