Our VAT Services
What Is VAT
Value-added TAX or VAT is a tax applied at each point of sale on the expenditure or usage of goods and services. Ultimately, the expense will be borne by the final consumer.In the UAE VAT Services, tax-registered enterprises are required to file VAT returns regularly, usually on a quarterly basis, to report the amount of VAT they have collected from their customers and the amount they have paid on their business expenses.The UAE’s VAT applies uniformly to tax-registered enterprises operating both on the UAE mainland and in free zones.
A taxable supply is a delivery of products or services made by a corporation in the UAE that is taxed at either 5% or 0%.
Difference between Zero-rated & Exempted Tax supplies
Zero-Rate supplies are goods and services that are subject to a tax rate of zero percent. For zero-rated supplies, the input tax is recoverable. Examples:
- Exportations of products and services
- Initial sales or rentals of residential structures
- Specific educational services and ancillary products and services
Exempt supplies are goods and services that are not subject to VAT. In addition, if all of your goods fall under the category of exempt items, you are exempt from registering for VAT. Additionally, you cannot obtain input tax credits.
- Economic services such as life insurance
- Residential structures
- Bare land
- Local public transportation
Relevance of VAT Services
Now businesses must reconsider their business models. The correct maintenance of accounting records will be one of the initial criteria for businesses to comply with the new law. The accurate documentation of all invoices, outflows, etc. will be essential for the timely and error-free filing of the file VAT return. Only by employing a dependable and professional VAT expert can you efficiently simplify your VAT processes. To obtain the top VAT services in Sharjah and the UAE, you must locate a qualified VAT consultant that can assist you with accurate accounting and VAT services. Businesses that lack internal capabilities and sufficient resources to facilitate VAT implementation may consider outsourcing all accounting services at this time. A qualified VAT expert enhances your company’s profitability, operational efficiency, and VAT compliance.
VAT Registration Process
VAT registration is required for enterprises whose annual taxable sales and imports exceed AED 375,000. Businesses can register voluntarily for VAT if their annual taxable sales and imports exceed AED 187,500. A firm can choose between the two types of UAE cheap VAT registration procedures:
- Mandatory Registration
The threshold for required business registration is AED 375,000. However, this threshold does not apply to international organizations.
- Voluntary Registration
The criterion for voluntary company registration is AED 187,500.
How to Register for VAT?
Through the e-services portal on the FTA website, organizations can register for VAT in the UAE.
What is VAT Return Filing?
At the end of each tax period, all VAT-registered businesses or “taxable persons” must file a “VAT return” to the Federal Tax Authority (FTA). The file VAT return indicates the amount of VAT owed by the taxpayer or refunded by the tax authorities. A VAT return summarizes the assessment of a taxable person’s supplies and purchases throughout the tax period and displays the taxable person’s VAT liability.
How to File VAT Return in UAE?
Form 201 must be filed electronically through the FTA portal ‘eservices.tax.gov.ae’ by businesses filing tax returns.
- Specifics about the taxpayer
- The duration of VAT filing
- VAT on all expenditures and other inputs
- Value-added tax on sales and other outputs
- Net VAT due
- Additional Reporting Demands
- Statement and Authorized Signer
VAT Return Form 201
Form 201 is a statement that must be filed by the taxpayer after each tax period. It includes:
- Specifics about the taxpayer
- The Return Period for VAT
- Taxable Costs and All Other Inputs
- Tax on All Outputs Other Than Sales
- Net VAT Due
- Additional Reporting Demands
- Statement and Authorized Signer
What are the Benefits of VAT Filing Return?
VAT compliance enhances the reputation of a firm.
- Effective business cooperation. In practice, many large organizations are averse to conducting business with non-VAT-registered firms.
- Once a company is registered under VAT law, its image is enhanced.
- The value-added tax is easier to administer than any other indirect tax.
When are Businesses Required to File VAT Returns?
The normal tax return period for VAT is:
- Quarterly for companies with annual revenue of less than AED150 million
- Monthly for enterprises with annual revenue of AED150 million or more
- At its discretion, the FTA may assign a separate tax period to a particular type of firm.
TRN registration services in the UAE from Merak Tax Consultant
What is a taxpayer registration number and why is it needed
Value-Added Tax (VAT) is the sole tax that must be paid in the UAE at this time. The payment procedure is governed by the regulatory authorities, and registration as a payer in the United Arab Emirates has distinct characteristics. Calculation of tax, its payment, and documented evidence demand a professional approach, namely contacting seasoned specialists who will relieve the business of the strain of studying tax law and talking with UAE tax authorities. We will assist you in obtaining a taxpayer registration number (TRN)/VAT number and resolving other tax and company registration concerns in the UAE.
A taxpayer Registration Number (TRN) is a unique number provided to VAT-registered legal entities in the UAE. The number is unique and consists of 15 characters. This enables regulatory agencies to identify taxpayers and obtain information regarding their transactions. A TRN or TIN (taxpayer identification number) is assigned just once to a legal organization, and the same holds true for branches. The group of enterprises, regardless of their size, shall utilize a single tax identification number.
Registrant – the name of the entity to which the TRN is assigned – must include its tax number on state-issued documents, such as tax returns, tax invoices, and other documentation. Those businesses that have been assigned a TRN may charge and reclaim VAT. Without a tax identification number, no value-added tax is applicable.
In some countries, the Registration Reason Code is used in addition to the Taxpayer Identification Number. The Registration Reason Code is an identity provided to legal organizations during registration that provides information on the grounds for tax registration.
When do you need a TRN/VAT number and TRN verification in Dubai?
In 2018, VAT was mandated by legislation in the UAE. VAT is not required for businesses with an annual turnover of less than AED 187,500; hence, a payer registration number is not provided. Between 187,500 and 375,000 dirhams, registration is optional with the issuing of a Tax Identification Number. If the sum exceeds AED 375,000, the payer must be registered and their Dubai TIN must be verified.
How to register a TIN/TIN in the UAE and ensure the TIN verification
The state regulator, the Federal Tax Authority UAE, assigns and verifies TRNs (FTA). To accomplish this, you must go through a multi-step registration process and create an account on the FTA website. The TRN is automatically assigned following registration as a VAT payer in Dubai.
On the web portal page for the service, an account is created. This is a complex process that demands the careful entry of data while protecting the integrity of the data; several sections require documentation evidence. Documents must be drafted using acceptable formats and within the stipulated timeframes. In addition to the conventional information on the registered company’s address, name, and type of operation, a great deal of extra information will be necessary, such as information about the company’s management, annual turnover figures, bank details, the company’s charter, and a statement. The paperwork bundle may contain a customs letter.
To build an FTA account while taking into account all of the complexities, it is advisable to employ professional services. Contact the consulting firm Al Merak Tax Consultant to do this. We will promptly issue an application for registration as a VAT payer, free of complications and delays. Our specialists will review your company’s documentation and enter the pertinent information into your FTA account. This will help you prevent future fines and other tax concerns.
Benefits of hiring a tax agent to check the TIN from Merak Tax Consultant
- The professional services of a tax agent (manager) in the UAE provide the chance to quickly and easily handle concerns with taxpayer registration. Especially if the business has an address outside the United Arab Emirates. Main advantages:
- A tax agent typically has established relationships with the Internal Revenue Service, granting them access to current information.
- With the assistance of a tax agent, registering as a VAT payer is streamlined.
- Federal Service review and approval of all information takes time. The tax manager allows you to obtain the TRN faster and prevent delays.
- The tax agent may assist with Dubai FTA TRN verification, Abu Dhabi TRN verification, and UAE VAT number verification, which are required to certify a company’s tax status.
- In the event that the TRN must be deregistered, the presence of a tax agent simplifies the involved procedures.
- The tax agent also serves as a tax adviser, which is essential for the proper execution of paperwork and legal compliance.
Merak Tax Consultant: VAT reporting and UAE TRN verification in UAE as per the requirements
Quarterly VAT returns are submitted. For businesses with a monthly revenue exceeding 150 million dirhams. VAT returns are due by the 28th day of the month after the end of the tax period. The due date for quarterly VAT returns is the 28th of the month after the end of the quarter. Merak Tax Consultant will provide TRN verification, ensuring that your declarations are filed on time and in complete conformity with the law.
How to use the services of a tax agent
Companies wishing to register as VAT payers in the United Arab Emirates are needed to hire a highly qualified tax agent. Agent services provide the option to undergo a streamlined registration process with the FTA and are assured to avoid future taxation issues. Individuals who require a taxpayer identification number or tax guidance may also seek the aid of a tax agent.
The performance of a tax officer’s duties by an outsourced management relieves the business of the responsibility of monitoring the modification of tax law and eliminates the risks associated with the fulfillment of tax responsibilities. Merak Tax Consultant is a team of seasoned managers who will provide your business with expert support in line with UAE tax law. Employing professionals from Merak Tax Consultant enables your company to:
- avoiding the challenges associated with the English-Arabic translation of documents (certificate, identity card, ID, etc.) and comprehending the regulator’s requirements;
- be aware of the latest changes in tax legislation;
- Eliminate the costs associated with eradicating violations of tax authority rules; this is no longer essential.
- have the representative in the authorities, in particular, in the FTA;
- seek competent tax advice at any time;
- timely submit the necessary tax documents at the request of the FTA and other agencies;
- optimize tax planning;
- Resolve concerns with tax regulations irrespective of the location of the firm, be it Abu Dhabi, Sharjah, Dubai, or any other emirate, local territory, or free economic zone.
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