VAT CONSULTANCY

Comprehensive VAT Consultancy Services in Dubai

At AVSC Consultancy, we pride ourselves on delivering top-notch VAT services to businesses across Dubai and the UAE. With extensive experience and a deep understanding of VAT regulations, our expert team is equipped to handle all your VAT needs, from registration to advisory and filing. Whether you’re a startup or an established enterprise, our goal is to simplify the VAT process, ensure compliance, and optimize your tax strategy for growth. Take advantage of our Free VAT Registration offer and experience our commitment to excellence firsthand.

Why Select AVSC for VAT Consultancy Dubai?

At AVSC, we leverage our extensive experience and expertise to deliver top-tier VAT return services in the UAE. Our comprehensive range of VAT-related services includes VAT registration, VAT return filing, VAT advisory, and resolving disputes in filing returns. Our expert tax accountants manage every aspect of VAT, ensuring compliance and optimal financial performance for your business. If you need professional VAT advisory services in Dubai or any other VAT-related matter, AVSC is here to assist you.

VAT Services in UAE

VAT Registration

Our VAT registration service helps determine if your business needs to register for VAT. We also evaluate the benefits of voluntary VAT registration, ensuring long-term growth and cost savings. AVSC handles the entire VAT registration process in Dubai, addressing your concerns and ensuring all key checks are covered.

VAT Consultation

AVSC Consultancy boasts a team of the best VAT consultants in Dubai. We offer VAT health check services to identify issues before they are flagged by the Federal Tax Authority (FTA). If you’re seeking VAT consultancy services in Dubai, look no further. We simplify VAT compliance for you.

VAT Return Filing

VAT return filing can be challenging for VAT-registered businesses. AVSC provides assistance with VAT registration, preparation, and submission of both basic and complex VAT returns. We manage your VAT returns under various plans and frequencies, ensuring compliance with all regulations.

VAT Planning

Our VAT planning services maximize the reliefs available and accurately interpret regulations. We help manage VAT planning, ensuring compliance with all regulations and reducing the risk of FTA investigations.

VAT De-Registration

VAT de-registration allows a registered taxable person to cancel their VAT registration, deactivating the TRN. AVSC assists with the entire VAT de-registration process, ensuring a smooth transition.

VAT Audit

AVSC helps manage VAT audits, preventing risks associated with tax audits and ensuring compliance with all regulations. We provide comprehensive support throughout the audit process.

Documents Required for VAT Registration in the UAE

  • 1. Trade License
    2.Passport copy of the owner/partners
    3.EID copy of the owner/partners
    4.MOA (not required for sole establishments)
    5.Complete address and P.O Box number of the company
    6.Bank Details (bank name, branch name & address, account number, account name, SWIFT Code, and IBAN)
    7.List of other entities owned by the owner/partners
    8.Income statement for the past 12 months
    9.Expected revenue and expense for the next 30 days post-VAT implementation
    10.Details of export or import activities
    11.Customs involvement details, including the VAT registration letter if applicable
    12.List of countries your company is doing business with in the GCC
    13.Indicate if you require one tax group number for all entities or separate tax numbers for each entity if the owner/partners represent more than one entity

Tax Residency Certificate (TRC) in UAE

The Tax Residency Certificate (TRC), also known as the Domicile Certificate, is issued to individuals and companies to exempt them from double taxation. Tax domicile certificates are issued after a thorough review of the documents. The TRC benefits individuals and companies by exempting them from paying tax in their home country under the advantage of the double taxation avoidance agreement. The TRC is issued for a period of one year.

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Tax Residency (Domicile) Certificate

Double taxation avoidance agreement (DTAA)

The Double Taxation Avoidance Agreement (DTAA) is a treaty between two countries designed to alleviate tax burdens during the process of import and export and for other taxes like income tax, inheritance tax, VAT, and more. Double taxation occurs when an individual or organization pays tax to two countries on the same income: once in the country where it is earned (UAE) and once in the resident country.

The UAE has signed taxation treaties with 117 countries, granting it the authority to issue tax residency certificates for permanent residents and companies, thereby relieving them from paying taxes in both countries. In 2018, the UAE signed its first double taxation avoidance agreement with a GCC country, Saudi Arabia.

Change of Authority

The Tax Residency Certificate (TRC) was previously issued by the Ministry of Finance. However, as of November 2020, the regulatory authority for issuing the TRC has been transferred to the Federal Tax Authority. This change is in coordination with the Ministry of Finance and is aligned with Cabinet Decision No. 65 of 2020. Individuals who have been residing in the UAE for a minimum of 180 days or hold a UAE residence visa are eligible to apply for the TRC.

Tax Residency Certificate for Individuals

Documents to be submitted by individuals:

  • Copy of the passport
  • Copy of the UAE residency visa
  • Copy of the Emirates ID
  • Copy of the certified residential lease agreement or tenancy contract
  • Latest salary certificate
  • Validated bank statement of the past 6 months
  • Report from the General Directorate of Residency and Foreign Affairs specifying the number of days the applicant has resided in UAE
  • Tax forms (if any) from the country where the certificate must be submitted

Tax Residency Certificate for Companies

Documents to be submitted by companies:

  • Copy of the company trade license
  • Establishment contract certified by official authorities (not applicable for sole proprietorship)
  • Copy of the company’s owners/partners/directors’ passports, IDs, and permits of residence
  • Shareholders’ and manager’s copies of the passport
  • Shareholders’ and manager’s copies of the residence visa
  • Shareholders’ and manager’s copies of the Emirates ID
  • Certified audit report/financial statements
  • Validated company bank statement of the past 6 months
  • Copy of the company lease agreement or tenancy contract
  • Tax forms (if any) from the country where the certificate must be submitted

UAE VAT Refund Services

AVSC provides VAT return filing services in Dubai on a quarterly and monthly basis, based on the dates mentioned on the company’s VAT certificate. VAT return filing in Dubai is mandatory for all businesses in UAE. All businesses in UAE must file VAT returns with the Federal Tax Authority (FTA) on a quarterly or monthly basis.

What is a VAT Refund?

When the input tax is greater than the output tax on a VAT return, the taxpayer can request a VAT refund. When a taxpayer submits a claim for a refund, the FTA will review the application within 20 business days of submission. The taxpayer will be notified regarding the FTA’s decision to accept or reject the claim. If the process exceeds the timeline of 20 days, the FTA will notify the taxpayer regarding the extension of the deadline.

To ensure a smooth and easy process for VAT return filing, the FTA has provided a detailed guide that helps users navigate the e-services portal, comply with VAT return filing requirements, make tax payments, and obtain VAT refunds.

How to Treat VAT Refundable as per UAE VAT:

The taxpayer has the following two options for handling excess input VAT, commonly known as VAT refundable:

  1. The taxpayer will be eligible to request a VAT refund.
  2. If the taxpayer does not wish to request a refund of the excess input VAT, the excess recoverable tax will be carried forward to subsequent tax periods. It can then be used to offset against payable tax and/or penalties, or the taxpayer can apply for a refund later at any point in time.

UAE VAT Refund Process

Review of VAT Returns filed by the company and the impact of VAT on business, including understanding the necessary scenarios that will be affected by VAT.

Preparation of the templates and other documentation as required by the Federal Tax Authority in their predefined format for VAT refund application based on the legislation, and submission of the refund request.

Receiving further requirements from the FTA and determining the necessary data/documentation, organizing and obtaining it as required by the FTA, preparing the answers in accordance with the legislation, and submitting the answers to the FTA.

Guidance and full support in addressing all queries and clarifications raised by the Federal Tax Authority during the refund process.

Why Choose AVSC for VAT Services in Dubai?

At AVSC, we cover all aspects of VAT services, ensuring compliance and providing expert guidance throughout the VAT return filing process. Let our experienced team assist you in meeting your VAT obligations effortlessly. Contact us today to streamline your VAT return filing and stay compliant with the FTA regulations.

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VAT Return Filing and Refund Process

  • Forms:

    – VAT Return: VAT 201
    – Input Refund: VAT 311

  • Submission:

    – Returns can be submitted by the Taxable Person or a designated representative (e.g., Tax Agent or Legal Representative).
    – Deadlines falling on weekends or holidays extend to the next business day.
    – Even with no transactions, a “nil” VAT Return must be submitted by the due date.

  • Reporting:

    – Output tax must be accounted for in the VAT Return covering the relevant Tax Period once the supply date has occurred.
    – Exclude supplies within Designated Zones, out-of-scope supplies, and disbursements from the VAT Return.
    – Adjust pre-populated VAT amounts on imports if customs errors occur.

  • Excess VAT:

    – Request a refund using Form VAT 311 or carry forward to the next period.

  • Penalties:

    – Late submission: AED 1,000 for the first instance, AED 2,000 for subsequent instances within 24 months.
    – Failure to submit: FTA may issue a tax assessment, including estimated payable tax and applicable penalties.

    Late payment penalties:

    • 2% of unpaid tax immediately.
    • 4% on the seventh day following the deadline.
    • 1% daily from one month after the deadline, up to 300%.

  • Payment:

    – Must be made after submitting the VAT Return and before the due date to avoid penalties.

VAT/EXCISE TAX

AVSC Consultancy is an approved VAT Consultant and Tax Agent by the Federal Tax Authority (FTA) in the UAE. Our team combines core financial expertise, innovative thinking, and advanced skills to deliver high-quality services in the competitive market. As a Tax Agent, when appointed by Taxable Persons, we can assist in:

  • VAT Registration, VAT Person Registration, and VAT Group Registration.
  • Preparing, submitting, and filing VAT Returns on their behalf.
  • Maintaining all financial records related to tax transactions.
  • Liaising with the FTA on their tax-related matters.
  • Representing them before the FTA for any queries or clarifications.
  • Facilitating and assisting the FTA during Tax Audits or Inspections.
  • Arranging or preparing all necessary documents in compliance with VAT for the FTA during tax audits.
  • Submitting requests for reconsideration or VAT Voluntary Disclosure based on FTA decisions.
  • Proceeding with the de-registration process on their behalf if required.

De Register for VAT in UAE

Generally, the termination of VAT registration is called VAT Deregistration. In the UAE, deregistration of VAT occurs when a business cancels its VAT registration with the Federal Tax Authority (FTA). There can be various reasons why a previously taxed business or individual might opt to cancel their VAT registration in the UAE. These reasons must fall under the conditions defined by VAT Law. Unless the reasons are valid and the conditions are fulfilled, the FTA might disapprove the application for deregistration.

For taxable individuals and businesses, VAT deregistration in the UAE is as important as registering for VAT. Business owners must know the rules and process for VAT cancellation in the UAE, as administrative penalties will be imposed for failing to file an application within the timeframe specified in the tax law.

Eligibility for VAT Deregistration

As per the law defined under the regulations of FTA, the following eligibility is must apply for VAT Deregistration in the UAE.

Mandatory Deregistering VAT

Under the rules, an individual or a business must apply for VAT deregistration if:

  • They stop dealing in taxable goods and services, OR
  • Their taxable supplies or expenses in the previous 12 months and the future 30 days do not exceed the voluntary registration threshold (i.e., AED 187,500).

If a business or an individual registered as a taxpayer with the FTA fulfills these criteria, they must not delay applying for VAT deregistration to avoid any penalties.

Time Limit: Once an FTA-registered entity becomes eligible for VAT deregistration under these criteria, they have a time limit of only 20 business days from the event causing such eligibility. Failing to apply within this timeframe will result in financial loss due to fines as a penalty for late application.

How to Cancel Vat Registration In UAE?

Once an entity fulfills the criteria for VAT deregistration in UAE, they can proceed by logging into their VAT account on the FTA portal. After logging in, they can navigate to the VAT deregistration form and provide the required details along with the reason for deregistration. Some information will already be populated in the form from the earlier registration data.

The decision of the FTA to approve the application for VAT deregistration depends on the provided reason as well as the clearance of all:

  • Outstanding taxes against the entity.
  • Returns being filed.
  • Any administrative penalties being paid in full.

Late submissions can be made, but the approval from the FTA to deregister VAT will be on hold until all liabilities, including any late submission penalties, have been paid. Even with a valid reason, the FTA will show the status of the application as “Pre-Approved” and will only consider it complete when all these liabilities are cleared.

VAT Deregistration Penalty

The penalty for failing to apply for mandatory VAT deregistration within the specified timeframe, which is within 20 business days from the occurrence of the event causing the taxpayer entity to become eligible for tax deregistration, is  10,000 AED.

VAT Deregistration for Groups

The process for the deregistration of VAT in UAE for groups is the same as for individuals. However, the criteria specified for groups that were registered for VAT differ slightly. In addition to meeting other requirements, the following reasons must be valid for a group’s VAT registration to be canceled:

  1. FTA will approve the cancellation of VAT registration for a group if the registered entity no longer meets the requirements to be considered a group.
  2. FTA can also approve the VAT deregistration for the group if the companies in the group are no longer financially associated.
  3. FTA can initiate the cancellation of a group’s VAT registration if it foresees that maintaining the group’s tax status could result in any form of tax evasion.

AVSC provides expert services in VAT registration and deregistration in compliance with VAT laws. Get our quality VAT consultation services to avoid any administrative penalties related to VAT.

After Submission of Application

When the online form is completed with all necessary details and reasons for VAT deregistration, it is submitted electronically. The applicant will receive an SMS confirmation on their registered number upon submission.

The FTA will then analyze the application, checking the provided reasons, the status of returns, and any pending penalties or tax payments. If everything complies with FTA rules and regulations, the application will be approved, and the VAT registration will be canceled.

The VAT deregistration will be effective from the end date of the last tax period in which the taxed entity became eligible for cancellation.

AVSC offers comprehensive services in auditing, accounting, tax consultancy, business setup, financial reporting, feasibility studies, management consultancy, and legal advisory in the UAE. We provide expert guidance for compliance, growth, and operational excellence.

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