Get Fully Competent Accounting And VAT Advisory Services in Dubai
VAT is a type of consumption tax that is usually charged on the usage of services or products. It is a form of indirect tax and is charged in almost 180 countries of the world. Accounts handling procedures, and VAT can be a tough task when you start your business setup in Dubai, UAE. You might require some consultation in this regard. MW Mideast provides you with all kinds of facilities in this regard and makes the whole process very easy for you.
Accounting services and VAT advisory servicesin Dubai are very necessary when you are calculating the cost of your business setup in the UAE. Businesses that are registered on the VAT act as government agents and collect the tax on behalf of the government and further give it to the government departments. These businesses charge this tax on the products and services that they provide to their customers and in this way VAT is collected.
Companies That Pay VAT In Dubai
All businesses that are commercial entities need to pay tax, including shops and offices, etc.
Consumers buying non-essential commodities will have to pay 5% VAT on these commodities.
Companies whose annual revenue is equal to 375k AED or more than this will have to pay VAT.
Commercial properties that are being sold come under the category of those companies that have to pay VAT.
All the products that are imported to Dubai, UAE will have to pay the VAT.
Companies Exempted From VAT
Those companies that do not fall under the category of paying the tax are:
The businesses that are essential like health and education are exempted from VAT in Dubai, UAE.
No VAT is applicable on residential places on a contract basis.
The houses that are newly constructed are not included in the group of VAT paying companies.
Consumers buying all the essential commodities, such as food, medical, and education will not be required to pay the VAT.
Frequently Asked Questions
1. What Is The Main Difference Between VAT And Sales Tax In The UAE?
A sales tax and the VAT are usually the same, but there can be some key differences in both. One primary difference is that sales tax is applicable on the final transactions of the selling or buying of services and products. Hence, VAT is collected throughout the selling and buying process in the supply chain.
2. Why Has TheUAE Implemented VAT In The Country?
VAT is implemented in the country because it will provide a new source of income for the government. As the government of the UAE has to look after many different services provided to the resident of the UAE such as hospitals, roads, schools, parks, etc. That is why VAT is collected and used for the betterment of these services supplied to the citizens of the UAE.
3. How Does Accounting Check The Misappropriation Of Funds?
A systematic way of accounting helps to check any kind of misappropriation in the funds or can detect any fraudulent activity ongoing in the business or company. Accounting also benefits us in avoiding the non-remittances of any of your funds transferred.
4. What Is The Process Of Government For Collecting VAT?
All registered companies or businesses apply VAT on the goods, products, or services they provide to their customers. The customers that buy those goods in return pay VAT to the businesses, which then pay this collected amount to the government.
5. Is VAT Applicable On A Rental Property?
The rent of a residential property or building is generally exempted from paying VAT. While all the commercial properties or buildings have to pay 5% of the VAT on their property.
VAT Registration Eligibility In UAE
The VAT in Dubai is a new form of tax imposed by the government, but the government has also facilitated many companies working in the UAE in this regard. Newly formed company setups or businesses are exempted from paying the VAT. But, it can be compulsory for them to pay the tax in some specific conditions.
The companies that are eligible for paying the VAT are:
Those companies that perform selling and buying of goodsand their revenue is increasing above 375,000 AED have to pay this tax to the government.
The companies present outside the UAE are usually referred to as foreign companies that have to pay this VAT if they are selling any tax-payable goods to Dubai.
Documents Required For The Registration Of VAT
You must have a tax identification number if you are getting your company registered for VAT. It is given by Certificate of Incorporation and issued by Tax register in Dubai, UAE. Based on this tax identification number, your company or business will be issued a VAT certificate. MW Mideast offers you a complete range of tax consultancy Dubai and VAT advisory services Dubai.
The following documents must be submitted when getting your company or business registered for the VAT:
Owner and shareholder’s passport
Registered address proof of the company
All the necessary information about your bank account must include your bank account number
Business license of your registered company
The income statement of your business for almost past 12 months/ 1 year
Detailed information about the goods and products that are exported and imported by the company
Accounting And Bookkeeping Services Dubai
Accounting is the term used for recording all the monetary dealings of a company or a business. The process of accounting involves:
Telling the financial dealings to the supervising authorities and agencies that collect this tax.
Advantages Of Accounting Services Dubai
The main advantages that Dubai accounting services provide you with are:
Understand all the sales-related matters
Accounting has a legal relevance
Accounting services compare the profit and loss of a company
Accounting checks any problem in the funds
Accounting increases financial stability
Accounting helps to keep the record of all monetary transactions
Working Of VAT In The UAE
VAT being the tax collection method in the UAE is collected by the owners of the companies that sell or buy goods in the market. VAT is paid by the customers and also by the suppliers of the goods. The difference between the VAT charged from the customers and the VAT charged from the suppliers is paid to the government of the UAE in the end. This is the method of VAT collection in the UAE, and it is a new source of income for the government of the UAE.
This tax is usually paid by all the companies in the UAE except for the companies of food, education, health, etc. in the beginning the amount of VAT charged is very low as much as 5%. The end-user is usually affected by the payment of this tax. All the businesses having annual revenue of about 375k or more can get their company registered for VAT collection.
Reduction in VAT Rates In Dubai, UAE
The following companies benefit from a 0% tax rate in the UAE:
Supply or residential properties
Services related to health care
Sea transportation service
Investments in precious goods and materials
Maintain Transaction Records With The Help Of Accounting& Booking Services Dubai
Accounting helps to maintain a record of all the transactions that your company has performed.
It keeps a record of all your funds transferred or received.
It maintains the record of all monetary transactions most systematically and in a professional manner.
Accounting checks out all the profits and losses incurred.
Inshort, accounting services are very important for any business or company that is operating in UAE. MW Mideast provides you with the best accounting and bookkeeping services in Dubai, UAE. Accounting helps to file tax returns to the government of the UAE. All the tax that is collected by VAT is then checked and given to the government for its use in providing people with the best benefits related to health, education, medical, etc.
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Why Choose MW Mideast For Accounting And VAT Advisory Services In UAE?
MW Mideast provides you with highly professional services in this regard. We have an experienced team of taxation that will assist you in all the matters related to VAT in Dubai. The new method of tax collection has changed the whole business structure in the UAE.
It is different from the GST as it is collected throughout the supply chain of selling and buying goods. You can trust our company fully in this matter. We will provide you with trust and quality of work.
When opening a new company or business in a foreign country, it becomes very difficult to understand all the terms and policies of that country. Then, in this case, expert advice is required, and we can help you give all the guidance in this process.
MW Mideast has been providing people with the best VAT consultancy Dubai services for a long time. We will assist you in all the tax regarding information in the UAE and make this process problem-free for you. This way, your company will flourish and become a well-known business entity in the future.