VAT Accounting Services
VAT Accounting Services in UAE
Value Added Tax (VAT), an indirect form of tax imposed on certain goods and services in the UAE is charged and calculated on the value of goods or service items. Since VAT accounting in UAE requires meticulous documentation, precise recording, and analysis, outsourcing your VAT services to an experienced VAT consultant is necessary to make everything perfect. When it comes to VAT accounting in Dubai and UAE, Aeb iaccountax is one of the most preferred names by diverse businesses across the country. Our VAT accounting services in Dubai are tailor-made to help your businesses record and maintain their VAT activities and procedures to abide by the UAE VAT law.
UAE VAT Accounting
VAT accounting involves managing the VAT aspects of a business and is crucial for all taxable entities under UAE Tax Law. Maintaining comprehensive records is essential, as it ensures the timely payment of consumption taxes and helps mitigate tax liabilities. In the UAE, keeping VAT records is not just important; it is mandatory.
Aebiaccountax specializes in delivering top-tier VAT consultancy services in Dubai and the UAE, offering a full suite of VAT accounting solutions. Our services encompass everything from VAT data management and tax report reviews to accurate tax calculations, filing, and documentation. We strive to make VAT accounting seamless for your business, ensuring compliance with all regulations.
Different Types of VAT
There are two types of VAT: –
1. Input VAT
The Input VAT is charged on goods when purchased or on services when offered. If you are a registered buyer with the FTA, the VAT amount will be deducted from your settlement.
2. Output VAT
The output VAT is charged on the sale of goods and services delivered. It is calculated directly.
VAT rate in the UAE
VAT is charged on different category basis as per the following rate in the UAE:
Standard Category
Automobiles, electronic items, fuel, jewellery, food & beverage, apparel, entertainment services, cosmetics, restaurants & hotels, construction, commercial leasing, etc. attract the standard rate of 5% VAT.
Zero Category
The export of goods or services, international transportation of goods and passengers, supply of certain means of transport, supply or import of investment precious metals with 99% purity and more, residential buildings, buildings used by charities, certain education services, and certain healthcare services attract a Zero rate VAT.
Exempted Category
Financial services, certain residential buildings, bare land, and local passenger transportation are exempted from VAT charging.
Important Documents for VAT Accounting
A business should submit the following documents in order to process VAT Accounting in UAE.
- Accounts of all supplies and Imports of Goods and Services.
- All Tax Invoices and alternative documents related to Goods or Services received and issued
- All Tax Credit Notes and alternative documents received.
- All Tax Credit Notes and alternative documents issued.
- Accounts of Goods and Services purchased and for which the Input Tax was not subtracted.
- Accounts of exported Goods and Services.
- Accounts of adjustments or corrections made to accounts or Tax Invoices.
- Tax due after the error correction or adjustment.
- Annual Account details
- General Ledgers
- VAT Ledgers, Purchase daybooks
- Credit and Debit notes, etc.
A penalty of AED 10,000 will be imposed on an individual or business who fails to keep proper records of the transactions made.
Why You Need Proper Accounting for VAT?
VAT accounting in Dubai demands a proper accounting system to make the procedures error-free and accurate. Systematic and well-organised accounting services are required to fulfil the VAT needs in compliance with the UAE law.
Proper VAT accounting is mandatory for every taxable business registered with the FTA.
VAT accounting ensures the access of all the necessary documents relating to tax filing at one place. This can make the tax return filing easy.
VAT accounting provides the details of the estimated total amount to be paid as taxes. This will help the management to set the budget if it wants to expand the business.
VAT accounting serves as a checklist that allows the business and the concerned authorities to check whether all the tax-related documents are submitted or not, as it consists of the names of the materials to be correctly filled and submitted.
Proper accounting and financial statements to ensure the business keeps all the data related to all the transactions made by it. It helps the company from future tax audit or inspection from the authorities to conduct the assessment without much burden.
VAT accounting is a process which calculates and registers the total amount of Taxes to be paid by a company to the government. The proper tax filing will surely fill the coffer that will boost the national growth.
Application of Reverse charge mechanism in Accounting System
Reverse Charge Mechanism is a process under which the accountability of paying tax to Government shifts from seller to the buyer. This mechanism is applied on the import of goods and services into UAE. Collection of proper documents relating to the import of goods will be easy to reclaim the tax through RCM. Booking RCM in the system will have accurate VAT 201 form, and the VAT filing should match with the Internal VAT report.
Thus, as a recipient or buyer of goods or services under the reverse charge mechanism, the following responsibility needs to be settled:
- All the customs documents and its supported invoices
- Account the value on which tax needs to be levied
- Determine the VAT due on reverse charge supplies
- Pay VAT to the government
- Claim Input Tax, if eligible.
Why VAT from Aebiaccountax?
Aebiaccountax is a VAT consultancy firm in Dubai that specializes in providing precise and comprehensive accounting and taxation services. Our VAT accounting consultants are highly skilled and dedicated to simplifying your VAT processes while ensuring they remain cost-effective and compliant. By entrusting us with your bookkeeping and VAT accounting services, you can avoid penalties and fines, allowing you to focus on growing your business.
We offers the following VAT accounting services to the business community:
– Comprehensive VAT registration and tax filing assistance
– Strategic VAT planning and advice
– Maintenance of meticulous records and documentation
– Careful management of balance sheets
– Accurate tracking and reporting of profit and loss accounts
– Training sessions on UAE VAT laws for your team
– Interpretation and classification of tax groups
– Efficient processing of accurate and timely tax filings
– Regular updates on new legislation and rules from the Federal Tax Authority (FTA)