VAT Tax Planning

VAT Tax Planning, Advisory & Compliance Services

Every person setting up a new business in the UAE and registering as a taxable person should bear in mind the importance of tax planning. Every taxable person shall apply online with the FTA portal www.tax.gov.ae for registration directly or through a register tax agent who will be acting as a VAT advisor. With the upcoming introduction of the VAT in Dubai from 1st Jan 2018, tax agents are expected to provide expert advice to registered taxable persons.

Why VAT Planning?

Efficient tax planning would enable a taxable person to minimise his tax outflow, defer his tax obligations, manage working capital, etc. Increased business complexities over the years have made it important to plan efficiently. For eg. Deciding whether to register as a tax group for VAT registration or not is one of the criteria of tax planning before VAT implementation.

VAT Planning and advisory services would consist of the below:

1. VAT planning in UAE

2. VAT advisory services

3. Recommending VAT registration as a single entity or a tax group

4. Applicability of the reverse charge mechanism for Imports

5. Guide on Intra GCC trade

6. VAT training and awareness to staff

VAT compliance services would consist of the below:

1. Ensure timely submission of VAT returns & reconciliation

2. Review of VAT records, returns & reconciliation

3. Providing advice on client’s clarifications and FTA notifications

4. Representing before the FTA for tax matters

5. Review and customization of source documents

Who Should Register for the Value Added Tax (VAT) in UAE?

Businesses should register for VAT when their turnover reaches the threshold.

The mandatory registration turnover threshold for every taxable person will be US $ 100,000 (AED 375,000) and the voluntary threshold will be US $ 50,000 (AED 187,500).

Registration will open towards the mid of Sept Q3 2017, which would be made mandatory from Q4 2017.

Find JCA UAE Audit, Leading Accounting Firms for VAT in Dubai, for more information, Inquire us today.