VAT Related Services

1. Our professional team provides part time accounting services as per the VAT system.
2. Designing Accounting system to handle the Value Added Tax (VAT).
Tax is the major source of income which helps to carry out developmental activities or take up social welfare measures such as public hospitals, schools and universities and defense.
The registration of Value Added Tax (VAT) is mandatory for those companies whose annual revenue exceed AED 375,000/-. But registration is optional for those companies having the revenue between AED 187,500 to AED 375,000/-
Direct tax - Tax is collected by Government from a person on whom it is levied (Income tax, Corporate tax, etc.)
Indirect tax - The Government collects indirect taxed from people through intermediary like manufacturers, traders, service providers etc. (e.g. VAT, custom duty, sales tax, etc.)
What is Value added Tax (VAT)
Value Added Tax (or VAT) is an indirect tax. France was the first country to introduce the system in 1954. At present, most of the countries are following VAT system to collect tax on revenue.
VAT is a multipoint tax system in which tax is collected by business from the buyer at every sale point. Therefore every business entity is liable to collect and pay tax, whenever there is a sale. The business entity pays to the Government the tax which was collected from the customers and it gets a refund from Government on tax which was paid to the suppliers.
VAT will be implemented on 01 January 2018 at a rate of 5%. Business can probably start registering for VAT from 01 October 2017.
For most businesses, VAT returns should be filed every three months. Filing of returns can also be done online using the government’s eservices
Once the law is out, business entities would first have to figure out whether their products/services are taxable or not and if yes, they would have to ensure that their billing or invoicing process can add a VAT charge to all taxable products
The requirement of VAT includes;
•Mandatory registration for VAT for all businesses exceeding the mandatory VAT registration threshold of AED 375,000/-.
• Filing of periodic VAT returns with the tax authorities (either monthly or quarterly).
• Remitting any VAT payable by a specified date.
• Record keeping in respect of all business transactions:
– Tax invoices
– Debit or credit notes
– Import and export records
– Records of goods/services provided for free or allocated for private use
– Zero rated or VAT exempt supplies and purchases
Benefits
1. Eliminate the cost of keeping a professional for handling VAT related transactions.
2. Submission of VAT return at the specified time (monthly or quarterly)
3. Implementing VAT system in the existing accounting system.
4. Submitting reports regarding the performance of business entity.
5. Free from the tensions of VAT related transactions.