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VALUE ADDED TAX (VAT)

A brief Introduction of Value Added Tax.

Friday, 30 December 2016

VAT on property

As UAE government is under the process of drafting the complete UAE Tax Law so it still unknown how much the personal transaction will be affected after the implementation of VAT. Currently, there is no guidance of VAT on property transactions but if UAE adopted the model of UK and Europe, it could be expected that new build commercial property will be eligible for VAT. Before the release of VAT implementation, these debates are tentative but however imperative for corporate planning purpose.&nbs...

VAT Return Payable Period

Once business registered for VAT it has to submit its VAT return on regular basis. The default period for VAT return will be 3 months for most of the companie...

Responsibilities of VAT Registered business

It's the responsibility of VAT registered companies to keep the financial record up-to-date and free from error. The financial record will be checked as evidence that company fall in the minimum annual turnover needs to register for the VAT. Those companies who doesn’t fall in minimum annual turnover criteria should also keep their record ready for any occasion for government to establish either they fall in VAT registration criteria.  VAT Registered Companies: -    Generally Charge VAT on it sales of goods and services. -   ...

Who should register for VAT?

If a business or vendor supplies of good and service meet the annual turnover limit set by the government and also trade in those supplies which come under the scope of VAT. -Under the first phase companies whose annual turnover is between the band of 1.87 million   to 3.75 million Dirham have option either to register for VAT or not. -Companies whose annual turnover exceed 3.75 million limit are obliged to register for VAT     online system.  ...

UAE VAT Rate for JAN 2018

As announced by MOF (Ministry of finance) VAT likely to be imposed on a consumer from 1st of JAN 2018, Rate expected to be as low as 5...

What is VAT?

1- What is VAT? VAT or Value added tax is one of indirect tax, which is applied to consumer spending. VAT is collected by registered VAT vendors on their supplies of goods and services. Registered vendor perform the role of tax collector on behalf of a government, so eventually VAT cost is bear by the end consumer.  Vendor/Business not only pays the VAT to the government but also can recover the VAT which the vendor/business paid on their purchases. This small illustration will help you how it works.  Product   ...