Let your VAT contribute to the country while we contribute to you!
Value Added Tax (VAT) is an indirect, transaction-based tax levied at each stage of the supply chain. While end consumers typically bear the cost, registered businesses are responsible for collecting and accounting for VAT, effectively acting as tax collectors on behalf of the Federal Tax Authority (FTA).
VAT was introduced in the UAE on January 1, 2018, by the Federal Tax Authority. To fully comply with UAE VAT legislation, businesses may need to adjust their core operations, financial management, bookkeeping practices, technology, and possibly even their human resources.
Businesses remit VAT to the government after offsetting the tax paid to suppliers against the tax collected from customers. Upyugo Global offers a range of services to assist with VAT compliance:
VAT Registration in Dubai
VAT registration is required for entities or individuals operating a business. The person registering can be an individual, a legal person, or another form of entity. The following registration criteria apply:
Mandatory Registration:
- The business’s taxable supplies and imports exceeded AED 375,000 in the past 12 months.
- The business’s taxable supplies and imports are expected to exceed AED 375,000 in the next 30 days.
Voluntary Registration:
- The business’s taxable supplies and imports exceeded AED 187,500 in the past 12 months.
- The business’s taxable supplies and imports are expected to exceed AED 187,500 in the next 30 days.
Startups and small businesses have the option to register voluntarily if their expenses exceed the voluntary registration threshold, making them eligible for tax credit. Before applying for VAT, it is essential to define your business structure, legal person status, place of establishment, fixed establishment, turnover, and taxable supply.
VAT Return Filing in Dubai
VAT return filing is an official tax report that registered businesses must submit to the FTA. The UAE requires all registered organizations to periodically file their VAT Form 201 according to their tax period, regardless of business process and function. Consolidating all taxable supplies, including exports, can be a tedious task for businesses. Upyugo Global has the expertise to file VAT returns that fully comply with the law.
6 Benefits of Outsourcing VAT Filing in Dubai
- Helps save excess VAT.
- Ensures compliance with transactions.
- Reduces errors during document submission.
- Protects the organization from VAT penalties.
- Maintains the timeline of filings.
- Periodically checks and audits VAT health.
Failure to remit VAT liability by the due date may result in the following penalties:
- 2% of unpaid tax immediately.
- 4% due on the seventh day following the payment deadline.
- 1% daily penalty on any unpaid amount one calendar month after the deadline, up to a maximum of 300%.
Last-minute VAT processing increases error rates and limits the ability to take corrective measures, costing time, energy, and money. As the saying goes, “delay is dangerous.” We are dedicated to the periodic computation of tax charges for better planning and regular VAT health checks, audits, and liability assessments to keep you in a safe position.
VAT Advisory Services
Implementing VAT procedures within an organization begins with analyzing account books, understanding the input and output structure, planning strategy, and segregating the tax group. Management should also be aware of VAT rates to control and modify cash flows.
VAT Advisory Services by Upyugo:
- Assess and improve tax controls.
- Analyze tax provisions on your business transactions.
- VAT Voluntary Disclosure.
- VAT Health Checkup.
- Training on VAT laws.
- Maintaining VAT-compliant documents.
- Reconciliation of VAT liability.
VAT Refund Services in Dubai
Organizations can request a VAT refund from the FTA when the input tax (charged on amounts paid to suppliers) exceeds the output tax (charged on sales). The FTA conducts an initial assessment, verifies documents, and scrutinizes the claim. Upon successful validation, the applicant is entitled to receive the refund within 20 days of application. Although the normal refund period is 20 days, complex applications may take longer. In such cases, the taxpayer is informed via email about the status of their application, whether accepted or rejected by the FTA. If the applicant prefers not to receive the refund during the current tax period, they may carry forward the recoverable amount to subsequent periods, using it against payable tax or penalties or applying for a refund later.
At Upyugo Global, we understand the complexities of VAT regulations and their impact on your business. Our goal is not only to ensure compliance but also to be your one-stop solution for maximizing VAT efficiency and profitability. We offer a comprehensive suite of services that address every aspect of your VAT needs.
Streamline Your VAT Compliance Process
Refund Services:
Claim what you’re owed! We expertly draft flawless refund applications that align with all FTA criteria, gather and verify required documents, and submit them on time for faster processing and expedited repayments.
Accurate and Efficient Registration Services:
Unsure about the documentation process? We guide you through the specific requirements for your business type and location, handling the entire online registration process, including VAT registration documents required in the UAE and FTA UAE VAT registration, ensuring compliance with all legal guidelines.
Comprehensive VAT Services:
Leave the paperwork to us. We manage your VAT filing services, ensuring deadlines are met and deductions are maximized, while providing expert VAT compliance services to keep your business operating smoothly.
Nationwide VAT Expertise:
Whether you’re in Dubai, Abu Dhabi, or anywhere in the UAE, our VAT registration services extend nationwide, offering tailored support for your local needs.
Seamless VAT Deregistration Services:
Let us navigate the deregistration process for you, ensuring a smooth transition and compliance with regulations.
Beyond Compliance, We Optimize
- Strategic VAT Planning.
- Proactive VAT Compliance Monitoring
Ready to streamline your VAT journey and unleash its full potential? Contact Upyugo Global today for a free consultation and discover how we can help you navigate the ever-changing world of VAT with confidence and ease.