VAT Returns Compliance

VAT Returns Compliance

The VAT is an expense that applies to use of all services/products. GCC Government has adopted this taxation system starting from 1st January 2018. Its implemented on goods and services with the exception of food items, healthcare, and education. The standard tax rate is very nominal – five percent. End-user are mostly affected by the implementation of tax however businesses have to make certain changes to their processes and procedures to comply with the legal requirements implemented by the government.
All businesses with annual revenue of Dh 375,000 or more are required to submit their VAT registration in UAE online applications within 30 days of being required to be registering. As per the regulatory Authority Federal Tax Authority Registration (FTA), all businesses in UAE must ensure the recording of their financial transactions, apart from that VAT registration requirements have done and ledgers are updated in time to avoid penalties.
Registration will be mandatory in case the revenue limit cross AED 375,000, if turnover is greater than AED 187,500, but didn’t exceeds AED 375,000 then optional or voluntary registration should be done.

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VAT Registration in Process UAE

PRO- VAT Consultants in Dubai, Abu Dhabi, Sharjah UAE can assist you to go through a simple process to start with VAT registration in UAE.

  • Provision of relevant documents for VAT registration
  • Receive your trade license, proof of business setup, banking details & signatory papers
  • Prepare documents to apply for business authorization like POA, MOA etc
  • Relevant description of Business activities in the form of declaration.
  • File your income from the previous 12 months and provide expected a figure
  • Financial experts will calculate the value of imports and exports
  • Manage your planning in order to deal with GCC officials & customers.

These are the constraints of the latest Commercial Company Law No.2 of 2015:

Article 26: Every organization or company must maintain the accounting reports for the duration of 5 years in distinction to the closure of the company’s financial year as per Article 26 of the Company Law.
Article 348: According to this article, fine of AED 50,000 – AED 500,000 will be imposed for collapsing in keeping the accounting record.
Article 349: Fine of AED 20,000 – AED 200,000 will be forced if the association/company fails to maintain the VAT accounting records for the period specified i.e., 5 years.

The Rule for Calculating VAT in UAE

The basic rule that you need to follow in order to calculate the VAT in UAE is to subtract INPUT TAX from the OUTPUT TAX which is equal to the VAT.


output Tax: output tax is basically the VAT that is collected on promoting goods.

Input Tax: input tax is the VAT that is compensated for buying unprocessed supplies.

Vat Consultants in UAE – Protax STRENGTHS!

It is never a simple job to get a hold on the idea of VAT in one go. This is the motivation behind why we are putting forth a free evaluation in the event that you need any assistance concerning VAT enrollment and calculation in UAE. We, FAR – Protax, are one of the main VAT experts in UAE today offering VAT consultancy services in Dubai, UAE; subsequently, we as a UAE VAT consultants are stretching out our hand to help you in whatever you might experience issues in with respect to the VAT.

Requisites in VAT calculation and VAT Accounting system

  • Make sure that the bill for purchasing goods must be incorporated. Also, confirm about the taxable stuff either tax has been appropriately charged means the input tax that should be given by the dealer and particulars specified in the invoices.
  • Assign the price on the retailing value at the instance of transaction or provision of accounts together with reducing the amount of input tax in order to reach the sum that has to be paid.
  • Compute the payment of tax and deposit to Government within due date.
  • Study related to Financial Experiences
  • To legitimize the paid tax, you need to sustain invoices, financial records, VAT returns, proper stock, VAT accounting and further significant proceedings at the moment of purchase.
  • Supply the significant information that is appealed by the Government in filing the VAT return in UAE to the Government authorities within the specific time.
  • VAT Calculation
  • Filing VAT
  • Convey reports on VAT Filing and Processing