VAT is implemented in the UAE with effect from 1st January 2018. VAT (Value Added Tax) is an indirect tax which is charged at every level of supply of goods or services or both. Businesses need to take necessary steps for VAT implementation in UAEinto their operations. Emirates Chartered Accountants Group offers support to businesses for VAT implementation in Dubai, Abu Dhabi as well as Sharjah and all other northern emirates.
Steps involved in VAT Implementation Services
We believe that the businesses should be guided properly for VAT implementation in UAE to comply with UAE VAT law and develop a sustainable tax strategy. The procedure for effective VAT implementation is as follows:
Understand the business model:
The TAX experts/ VAT Experts visit your office to understand the business model for designing a VAT Implementation plan which suits for the UAE VAT Regulations for your business.
Training to the Management & Employees:
In this phase, we provide training on the concepts of VAT in the UAE & discuss about the business type & its issues on compliance to the UAE VAT Law. Provisions shall be made to train the employees from each department having implication on VAT.
Analyzing the impact of VAT on your business:
In order to have a better clarity and appraisal for the management and to streamline the operations of the company by complying with the UAE VAT requirements, we study the impact on business on working capital, costing and profitability.
Identifying a VAT team leader | VAT Implementation Project manager:
For shifting the transactions into UAE VAT compliance and to function smoothly and in a timely manner, we will select a responsible person/team from the company to be the head of the VAT Implementation project called VAT Implementation Project Manager.
Registration for VAT:
As part of VAT implementation, to comply with the law of the land with respect to VAT (UAE VAT Law), we advise regarding the procedural formalities and the date by which registration has to be made, considering whether the company got any exemption in this respect or not, whether the group registration or standalone is more apt etc.
Accounting systems under VAT
The present accounting systems will be scrutinized. Proper classification/ grouping with appropriate chart of accounts suitable for VAT regime will be suggested. Necessary guidelines will be given to the accounts team for preparing the first VAT return to the Federal Tax Authority (FTA).
Invoicing under VAT
The requirements of VAT invoicing (and issuance of credit note) under the UAE VAT Law will be implemented. Proper guidance will be given to the IT persons and proper training to the Accounts and other departments connected to sales will be given.
In order to incorporate the changes in the billing, accounting and other administrative procedures to comply UAE VAT formalities, necessary guidance or information required will be communicated to the IT team/software personnel either directly or through VAT Implementation Project Manager.
Filing of Return VAT Return
The support for preparing and filing of the first VAT return by taking the correct input tax credit against the total VAT liability with guidance on planning/better timing of cash flows.