Value Added Tax

The GCC-wide introduction of Value Added Tax (VAT) from January 1st, 2018, has risen concerns among businesses in the UAE. VAT will be introduced in the UAE in two phases. In first phase, companies with recorded revenue of more than AED 375,000 are mandatorily required to register for VAT. Also within first phase, companies with revenue more than AED 187,000 but less than AED 375,000 will have the option to register for VAT. In second phase, all companies will have to register for VAT however the effective date is still under discussion. The VAT will be collected at the rate of 5% on the goods and services at each step in the supply chain. Basic food items, education, public transport and healthcare categories will be exempt from VAT for now. The VAT registration for the first phase tentatively starts from the mid-September 2017.

This will impact not only businesses with local transactions but also cross border transactions within the GCC and non-GCC countries. Since in the UAE, the taxation concept is new to most of the businesses. Thus, it is common for businesses to have difficulties/doubts as to the starting point to implement VAT.

 

How Falcon International Consulting & Auditing (FICA)can help you?

The VAT team of FICA will support businesses to implement the new UAE tax environment and provide solutions which suit their business model as well as industry. The team consists of VAT experts having more than 20 years of experience globally. In addition, we assure that our approach will be more business oriented rather than theoretical. The range of our end-to-end VAT services is:

A. VAT implementation with the people, process, and system approach

  • Business impact analysis and its recommended solution
  • VAT registration support

B. Ongoing VAT Services

  • Calculate or review calculation of VAT
  • Support in VAT return filing

C. Other VAT Services

  • Dealing with queries from the tax authority
  • Tax optimization