VAT

As per UAE’s legislation, the following items fall under the VAT exemptions:

• Financial services, like life insurance, reinsurance of life insurance, and financial services that are not conducted for an explicit fee, discount, commission, rebate, or similar type of consideration.
• Residential buildings, other than the residential buildings which are specifically zero-rated.
• Bare land.
• Local passenger transport.
• Tourists (receive 85% of the total VAT amount)

There are two types of VAT in UAE, Exempted supplies (the kind of supplies which are unaffected by VAT implementation in the UAE and the input tax in them can not be deducted since tax amount is not charged) and Taxable supplies (the kind of supplies which impact 5% VAT in the UAE, hence VAT can be deducted). Taxable supplies are further classified as standard/full rate and zero rate.

A tax consultant or tax advisor advises businesses and individuals to prepare and manage their tax returns optimally and in the most beneficial aspects. They also represent clients to settle potential tax issues.

Yes. Since January 1st, 2018, a general VAT rate of 5% applies to most goods and services, with some goods and services subject to a 0% rate or an exemption from VAT

Yes, as per legislation Since January 1st, 2018 A VAT of 5% is levied at the point of sale for all goods and services except some goods and services subject to a 0% rate or fall under the exemption from VAT bracket.

As per the laws of UAE, The export of services to countries outside of the GCC territory will be zero-rated under VAT in UAE. thus, no tax is applicable on export and the supplier can claim the input tax credit on the inputs used to provide the exported service. However, for the export of service from UAE to a country outside the GCC territory to qualify as a zero-rated supply they must meet the following criteria: the recipient of the service should not have a place of establishment or a fixed establishment in any GCC State and should be outside UAE at the time when the service is performed and The services should not be directly connected with real estate or moveable personal property.

The tax regime of UAE is such, that it does not levy income tax on individuals. However, it levies a corporate tax on oil companies and foreign banks. An Excise tax is levied on specific goods which are typically harmful to human health or the environment. Value Added Tax of 5% is levied on a majority of goods and services except for some goods and services subject to a 0% rate or fall under the exemption from VAT bracket.

The role of a VAT consultant for a client is to ensure VAT compliance with proper reporting, minimizing VAT liability, identifying risks and opportunities with due diligence, tax planning, inquiring and documentation, managing all month end processes on time, and taking care of all relevant deadlines so that the client can focus on their primary business.

VAT applies equally to all tax-registered businesses managed on the UAE mainland and in the free zones. However, if the UAE Cabinet defines a certain free zone as a ‘designated zone’, it must be treated as outside the UAE for tax purposes. Therefore you need to register for VAT in Dubai as long as you do not operate from such a ‘designated zone’. Some traders do not register for VAT because their businesses have turnover (sales) below the VAT registration threshold and so they cannot charge VAT on their sales (unless they decide to register voluntarily

Yes, as per legislation Since January 1st, 2018 A VAT of 5% is levied at the point of sale for all goods and services except some goods and services subject to a 0% rate or fall under the exemption from VAT bracket.

The primary job of a tax consultant is to verify tax compliances and filing and to do tax planning for an organization. Basically, they help their clients to minimize their tax liabilities and to make the tax return rightly.

Although all tax consultants start off as accountants, the work of a tax consultant is different from that of an accountant. An accountant prepares the financial statements, bookkeeping, and records the day-to-day transactions, while a tax consultant verifies tax compliances, filing, and does tax planning to minimize the tax liability of their clients throughout the year.

Yes. A tax advisor and tax consultant are the same as they both individuals possessing expertise in tax accounting and tax law. Their job is to bring down the tax liabilities for clients, estimate taxes on different investment portfolios, determine the right relevant deductions and credits, etc. other than writing tax returns for their customers and filing them.

A tax consultant or a tax advisor start their career as accountants, although later their work differs, since an accountant prepares the financial statements, bookkeeping, and records the day-to-day transactions, while a tax consultant verifies tax compliances, filing, and does tax planning to minimize the tax liability of their clients throughout the year.

Although all tax consultants start off as accountants, the work of a tax consultant is different from that of an accountant. An accountant prepares the financial statements, bookkeeping, and records the day-to-day transactions, while a tax consultant verifies tax compliances, filing, and does tax planning to minimize the tax liability of their clients throughout the year.

• A taxation consultancy does the following apart from filing taxes of their clients.
• Tax documentation.
• Filing e-returns
• Evaluating legal compliances
• Determining and optimizing tax liabilities

Tax consultants work closely with their clients to do verification of tax compliances, filing, tax planning and minimize their tax liabilities throughout the year and make the tax return rightly.

A taxation consultant does filing taxes of their clients, documentation of taxes, filing e-returns, evaluating legal compliances, optimizing tax liabilities, and making legitimate investments like insurances and other schemes for saving taxes incentivized by the state.