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VAT Value Added Tax - Presentation on Key Concepts and Knowledge
Farhan Aqil
CA, ACCA, CIA, M.Com, Bsc (Hons.) Partner at Push Digits

VAT has been launched in the UAE from January 1, 2018. VAT (Value Added Tax) is a type of indirect tax but it is also referred to as a type of consumption tax. It is levied by businesses on supply of goods and services to customers. Businesses having annual turnover of AED 375,000 or more are required to register for VAT in the UAE as per the Executive Regulations of the UAE VAT law. Therefore, businesses with annual turnover of AED 375,000 or more should take necessary actions to implement VAT compliant systems into their business operations.

Arqaam Global provides VAT implementation services to businesses operating in different emirates of the UAE to comply with FTA regulations. Our VAT implementation services ensure that your accounting system is fully compliant with FTA regulations and accounts for VAT on all the business transactions.

Our VAT Implementation Services

In order to comply with the requirements of the UAE VAT law, it is important that businesses in the UAE are guided properly with regards to developing a strategy to implement VAT compliant systems into their business operations. The strategy which our tax experts adopt for successful implementation of VAT compliant processes and systems include the following:

Understand the business model
The first step of implementing a VAT compliant system involves VAT experts visiting business premises to gather information to have an understanding of the entity’s business model and existing systems as this helps them in developing an effective VAT implementation strategy for the entity.

Assessing the VAT Impact on the Business
Our tax experts will assess the impact of applicable VAT provisions on the entity’s business operations and systems as it is important for the entity to know about the areas that will be most affected due to implementation of VAT compliant systems and processes. This also provides the entity with an opportunity to identify critical areas that will require special attention during the process of implementing VAT compliant systems.

VAT Registration
We provide our clients with advice and help to complete the VAT registration process. We also advise our clients regarding whether the entity is exempt from VAT, the entity should register for VAT as part of a tax group or registering as a standalone would be a better option for the entity and the date by which the entity should get registered for VAT.

Allocation of VAT Related Duties
In order to make sure that an entity conducts its business operations in accordance with the relevant VAT regulations, it is important for the entity to assign duties to its staff members relating to VAT activities. Our team of VAT experts will assist the entity’s staff members in discharging these duties.

Identifying a Team Leader for Entity’s VAT Team
In order to make sure that an entity’s operations function smoothly and in accordance with the UAE VAT regulations, it is important to assign a member of the VAT team with the responsibility to lead the entity’s VAT department and supervise all VAT related activities during and after the VAT implementation process. We would assist our clients in selecting the right candidate to head the entity’s VAT implementation project.

VAT Training for Staff
As part of our strategy to implement VAT compliant processes and systems, we conduct detailed training sessions with our clients. Our training starts from general overview and we then take you through different complex business scenarios and make you understand VAT impact on different types of business transactions.

VAT Compliant Accounting Systems
Our Tax experts will analyze the accounting system currently employed by the Entity. Once the accounting system has been analyzed, a new chart of accounts suitable for the VAT regime will be recommended to the client. The new chart of account will have all the amendments to account for VAT in business transactions.

Invoicing under VAT
Our experts will provide entity’s accounting and IT department with proper guidance regarding invoicing under the new VAT regime. Proper training and awareness will be provided to all the departments connected with sales as to how to invoice customers as per the provisions of the UAE VAT law.

Changes in Entity’s IT System
A business may be required to make changes to its invoicing, accounting and other processes to ensure compliance with VAT regulations. In order to change the way an entity’s processes and systems currently function, it is important that necessary information, training and guidance is provided to the entity’s IT department. Our VAT implementation experts will provide detailed training and guidance on the required changes to be incorporated in the business processes and standard operation procedures which will assist client in adopting a VAT compliant IT system to support compliance with the regulations.

Filing VAT Return in UAE
Our tax experts will review your Input and Output VAT reports, reconcile with relevant Income and Expense transactions booked within the tax period to ensure accuracy and completeness, review zero-rates and/or VAT exempt transactions and prepare the VAT return file with comments on each business transaction and submit to Entity’s Finance Department for review and approval. Once approved, the return will be filed with the FTA. Our detailed review ensures 100% accuracy and 0% chances of errors in the VAT Return which makes us one of the leading VAT Consultants in the UAE.

Arqaam Global Accountants and Tax Consultants is one of the leading tax and accounting consultancy firms in the UAE. We work end to end with our clients to ensure:

  • Client’s systems are compliant with FTA regulations
  • Client’s staff is trained to record different types of business transactions such as tax invoices, reversals, provisions, journals, tax credit notes etc.
  • VAT returns are accurate, complete and error free
  • Detailed audit is performed on VAT returns before submission

For a no cost no obligatory meeting with our Tax Partner, please call +971 50 3958931 or simply click Get a Call Button or fill the short Contact Us form and one of our tax Partners will get in touch with you within 30 minutes to provide a caring, professional and satisfactory service.

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