VAT Advisory

VAT Advisory - Overview

Managing VAT obligations will be an ongoing challenge for businesses. With the passage of time, VAT legislation is likely to witness changes, which will have an impact on businesses. More VAT considerations will come into play with changes in business scenarios, such as new events like EXPO 2020, launch of new services, new transactions being added to your business, or with changes in your supply-chain structure.

All these would need review and advice from a VAT impact perspective

VAT Registration - Tax Registration Number (TRN)

The UAE VAT Law requires a taxable person to register for VAT with Federal Tax Authority (FTA) and obtain a Tax Registration Number (TRN). The Law provides mandatory registration and voluntary registration thresholds.

• A taxable person is mandatorily required to register with FTA if its taxable supplies exceed AED 375,000 (Three hundred seventy-five thousand dirhams) in the past 12 (twelve) months or it expects it to achieve the mandatory threshold in the next 30 (thirty) days.
• Alternatively, if the taxable supplies exceed AED 187,500 (One hundred eighty-seven thousand five hundred dirhams) in the same period, it can proceed with voluntary registration.
• The Law allows group registration for groups with multiple entities in the country

VAT Implementation and Training

UAE VAT Laws provides for 5 different rates for the type of transactions as follows:

• 0% for export of goods and services
• 5% standard rate
• Exempt for certain goods and services
• RCM for certain imports and exports of goods and services
• Out of Scope from UAE VAT for certain transactions
• Complying with the Tax Invoice requirements
• vailing Input VAT credits and where it cannot be claimed etc, and such training will be imparted to your team

VAT Returns

Yo the frequency of your VAT filings with FTA depends on xxxx. The due date for making the payment and filing the Returns in the FTA portal is 28 days from the end of the Return period.

How KPI Tax Experts Assist You

• Obtaining a TRN / Group TRN. We will evaluate your business and assess if you are for registration under the provisions of the Law.
• Understanding your business model and assist you in implementation of the VAT rates in the system and to facilitate generation of VAT Reports. We will handhold you through the entire process and provide training to your team on UAE VAT Laws applicable to your business processes
• Assistance in filing your VAT Returns on time. Should you require we will also verify the transactions in the VAT Return period, on a sample basis, to check the correct treatment of the VAT in the Return.