VAT services

Under the VAT guidelines – the Federal Tax Authority has crafted a scheme for the business visitors, wherein they can file a refund claim of VAT paid on expenses incurred in the UAE – thereby globalizing the UAE economy.

Earlier this year, in March 2022, the FTA announced that they will accept refund applications for the UAE VAT refund for the Foreign Business scheme. Non-UAE resident businesses need to understand whether they have incurred VAT and if they qualify for a refund. Here is all you need to know about the VAT Refund Scheme:

Who is eligible? Only qualifying non-UAE resident businesses, on certain expenses incurred during 2021 calendar year, and totaling more than AED 2000. Further, they should fulfill the below criteria:

• Not have any VAT registrations in the UAE
• Not conduct business in the UAE
• Must be registered with a competent authority and conduct business in that jurisdiction.

Under the below situations, a business will not be eligible for VAT refunds:

• A business supplies products/services in the UAE
• The tax incurred is one that is irrecoverable by VAT registrants in the UAE
• The FTA has listed eligible countries, so if your business is not one from the listed countries
• A non-resident tour operator

Now, the most important part to filing VAT refunds is the documentation process, which might not necessarily be the easiest, which is where you need VAT consultants in UAE. For the business VAT refund scheme, the below original hard copy documentation is a must:

• Original tax compliance certificate
• Original tax invoices
• Stamped proof of the payments for all the claimed tax invoices
• Proof of authority of authorized signatory
• Passport copy of authorized signatory

While this can get overwhelming, TRC Pamco – a firm providing VAT advisory services, can help you in application of VAT refund, review of documentation, preparation of details as required by FTA and continuous follow-up with FTA to expedite the refund process. They also advise you on the best foot forward to getting a hustle free VAT refund.

Ever since the introduction of VAT in the UAE – there have been questions and some more. With regulated tax agents in the UAE – businesses are trying to sort their VAT-related issues, given the heavy penalties charged on non-compliance. Here are a couple of common mistakes that businesses tend to make and must always avoid.

• It’s important to record the sale in the correct emirate – it isn’t dependent on the customer location but on the location of your fixed business.
• Most businesses fail to notify the FTA that tax is based on margins, wherein if you are selling certain goods like coins, stamps, and second-hand goods – you must charge VAT on the profit margin.
• Not having an invoice-wise working of the returns – it’s important to maintain this, because if ever the FTA demands an audit – these details will be required.
• It’s crucial to file returns and make payments on time, or else there is a heavy penalty levied on the business. Given that most businesses tend to miss out on dates, it’s important to indulge in VAT consultancy services in Abu Dhabi and Dubai.
• Be careful of the claims – and ensure you are making the right claims and on the right purchases.
• If your business makes a zero-rated sale or an exempt sale – it doesn’t mean that you don’t show it. Even if you file everything properly and miss out on this information – it can have repercussions. Identify and disclose them in your return submission.
• Reverse Charging Mechanisms is another place where businesses need to be careful. While disclosing transactions for returns, companies fail to disclose the reverse charging mechanisms, given they don’t have any tax effect.
• Timing is crucial when it comes to VAT, and it should be charged at the right time. There have been instances where businesses fail to insert supplies in the wrong returns, although they are supplied much later.

These are a few of the common VAT-related mistakes that businesses make. However, if you want to avoid this, it’s good to indulge in VAT health check services in UAE and stay in compliance with the VAT laws. To know more, reach out to TRC Pamco, a leading VAT consultancy in Abu Dhabi and Dubai.

In January 2022 – VAT completed 4 years of existence – and marked a stark change in the regulatory landscape of the UAE. Ensuring VAT compliance is of utmost importance to organizations, and there are various VAT consultants in the UAE who help you stay compliant.

What is the scope of VAT in the UAE in 2022?

If your total taxable supplies and imports exceed the mandatory registration value of AED 375,000 over the last 12 months or will exceed it in the next 30 days – you need to be VAT registered and compliance.

What are the things you need to follow?

• Maintain your VAT records. It is important to have the VAT records for at least 5 years. The documentation includes: the company’s supplies and imports of goods & services, tax invoices, credit notes, alternative documents, records of goods and services for which no input tax has been deduced, records of goods and services exported by the company, any adjustments or corrections made on tax invoices, and more.
• The VAT returns should be filed in the timely manner. The FTA allows for quarterly tax periods, in which the returns must be filed to avoid deductions and penalties. Given the change of weekends in the UAE – it’s important to be in touch with your VAT consultants in the UAE to ensure compliance.
• Incase of any payable taxes, VAT registrants must settle it on the return filing date, to avoid delay payments. It’s best to stay on top of your VAT filings and pay your taxes well ahead of the due dates.
• Some of the goods and services carry a 0% VAT rate, which include international transportation, investment-grade precious metals, some education & healthcare services and more. Your VAT filing consultants in the UAE can guide you on this topic.

Are you a business worried about VAT compliance and related delays? Well, TRC Pamco is here to help you. Being one of the reputed VAT consultants in UAE, they can assist you with VAT filing, VAT health check services, clarification and exemption on VAT, double tax avoidance, tax residency certificate, VAT refunds, VAT registrations/deregistration, voluntary disclosure and more. Reach out to them to know more!

A VAT health check is super essential for every business, to ensure authenticity and compliance of organizational processes, under the VAT guidelines – and thus successfully submit accurate numbers for VAT returns.

A VAT health check assures the organization of fair treatment on VAT, given the transparent audit trials and reconciled accounts. A health check begins after discussing the business, identifying the areas that need focus, and reviewing the VAT workings and systems being used. In the UAE, the Federal Tax Authorities are authorized to perform tax audits – thus it’s important for every business to be VAT compliant, to ensure no penalties on your business.

How is a VAT health check conducted?

A VAT health check is conducted by first independently reviewing the client’s tax filings to get a true and fair view of their business. Post this, if there are any questions, it’s put forward to the clients. After gathering all the past and present information, a thorough study is undertaken on the accounting records, the calculations, the tax liabilities, tax compliance, and tax records. Annual VAT returns are compared with the accounts, to ensure they provide the same numbers. It’s all about knowing if VAT is fairly treated by an organization and reports accurate information to the FTA.

A VAT health check is a must for every business. But why? A VAT health check conducted by qualified VAT firms in the UAE helps you:

• Identify opportunities to maximize your VAT returns
• Highlights all areas of concern, helping you mitigate risk in the most efficient manner
• Reviews your VAT liability, helping you optimize it.
• Identify if the maximum VAT benefit is being achieved by your business
• Constantly reviews your VAT systems to identify arising opportunities or improvements
• Find errors or gaps before the FTA, thus potentially mitigating any penalties or defaults

If you are finding any discrepancies in your business, and looking for a VAT health check, reach out to TRC Pamco, a VAT consultancy in the UAE. They provide Health check services with their vast experience and knowledge on the subject matter.