VAT is a transaction-based indirect tax which is levied at each step of the supply chain. End consumers generally bear the VAT cost while registered businesses collect and account for the tax, in a way acting as a tax collector on behalf of the Federal Tax Authority.
VAT was introduced in the UAE on 1st January 2018 by the Federal Tax Authority.
To fully comply with the UAE VAT legislation, businesses may need to make some changes to their core operations, financial management and book-keeping, technology, and perhaps even their human resources.
VAT is paid by the business entity to the government after offsetting the tax amount it has paid to its suppliers and the tax amount it collected from its customers. We offer various services under VAT compliance and below is the list:
VAT registration is made by registering the entity or a person who operates the business.The person can be an individual, or a legal person, or another form of entity. The following registration criteria are followed while registering for VAT:
Before applying for VAT, you must define your business, legal person, resident, place of establishment, fixed establishment, turnover, and taxable supply.
However, inaccurate and incomplete VAT registration procedure leads to delayed approval of Tax Registration Number which on the other hand invites penalties. BCL is mastered in providing you with hassle-free registration with complete VAT requirements and makes you good to go.
VAT return is the official tax report a registered business has to submit to the FTA. UAE requires all its registered organizations to periodically file their VAT Form 201 as per their tax period invariable of business process and function. It is tedious task to consolidate all your taxable supplies including exports for any businesses and submitting it with FTA, BCL Globiz has the expertise in filing the VAT return that is fully complied with the law.
Further any delay in remitting the VAT liability beyond the due date could attract late payment fee as below:
Last-minute processing of VAT increases the error rate and decreases the ability to take corrective measures which costs time, energy, and money. As it says delay is dangerous, we are dedicated to the periodical computation of tax charges for better planning and periodical checking, auditing, and computing the VAT health and liability to position you in a safe space.
Implementation of VAT procedure in an organization starts with analysing the account books, understanding the input and output structure, planning the strategy, and segregating the tax group. In addition, the management should be aware of VAT rates to control and modify cash flows.
We at BCL Globiz ensure that the team is regularly updated with amendments in the VAT laws and provide top notch professional advisory services that benefit the organization in the long run by avoiding penalties levied in the law.
VAT refund is requested by organizations from FTA when the input tax (charged on amount paid to suppliers on purchases) in VAT return filing is greater than the output tax (charged on the amount of sales). FTA carries out an initial assessment, document verification, and scrutinizes the claim. Upon successful validation, the applicant is entitled to receive the refund of excess tax within 20 days of application.
Though the normal refund period of VAT is 20 days, complex applications can take a while longer. In such instance, the taxpayer is informed through e-mail about the status whether FTA accepts or rejects the applications.
If the applicant doesn’t want to get the refund at the current tax period, he can carry forward the recoverable to subsequent periods and use it in payable tax or penalties or apply for a refund later.
BCL helps you with drafting faultless refund applications that align with all the FTA criteria, submitting the applications on-time, and ensuring that all the required supporting documents are accurate. This facilitates faster refund cycles while eliminating rejections.
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