VAT Implementation in UAE

UAE’s decision to implement VAT was part of the Government’s effort to expand and diversify revenue in the context of the sharp decrease in oil prices. VAT, which is an indirect tax, is implemented by the companies in their business process. Carvy Consultants, as a team works cohesively on VAT execution to help organizations in Dubai.

VAT Implementation in UAE – Procedure

Carvy knows as a matter of fact that companies need support for VAT implementation in UAE to comply with the UAE VAT law. They ought to foster a useful assessment plan. The dynamic VAT implementation procedure is as follows:
The supply of products and services in the UAE will be levied VAT at a standard rate of 5%. Certain supplies such as local transportation, financial services, healthcare, exports outside GCC will be zero rated or VAT free in the UAE.

The VAT specialists should comprehend a plan of action to construct the best VAT implementation process that suits your business. Carvy Consultants provides abet direction about the strategies for VAT in the UAE business model. A well-equipped team will be appointed in order to train the employees from each division.

VAT on inventories, costing, profitability and working capital have a great impact on businesses. The management gains a better knowledge of the situation as a result of this examination. In addition, adhering to UAE VAT standards efficiently sets a benchmark with the company’s operations. Proper categorization of VAT friendly chart of accounts is essential along with a thorough evaluation of current accounting systems. Further, the accounting staff will be given important instructions for submitting the first VAT return to the Federal Tax Authority (FTA).

The IT department requires assistance with VAT billing under UAE VAT regulations and appropriate training for accounts and other sales related departments should be provided. Appropriate direction and proper advice are needed for incorporating the new UAE VAT guidelines to the bookkeeping and other managerial activities. The VAT execution staff provides the information needed to be delivered to the IT team.

Return Filing of VAT

At the end of each tax period, VAT registered businesses should submit a VAT Return to Federal Tax Authority (FTA). We help you to plan, prepare and submit your  VAT return. This is done after determining the right input tax credit against the overall tax liability along with suggestions for better cash flow planning and timing.

Carvy Consultants support customers by providing advice and training to businesses on the impact of VAT. Our VAT team of specialists provides prompt and meticulous service throughout the UAE.

Businesses must strictly heed the VAT law in UAE. We advise businesses on the procedural requirements and the deadline for registration, taking into account whether or not the business has any exemptions. Companies should also determine if a group registration or a single registration is more appropriate.

Seamless Transformation

It is essential and critical for businesses to understand the fundamentals of VAT. It’s never a simple task to comply with VAT regulations. Carvy Consultants will embark on a journey with you to help your business in the most ideal way possible in order to comply with UAE VAT rules. Also, our innovative methodology ensures a transit seamlessly into the new VAT era for your business.

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Pradeep Balakrishnan, Manager

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