VAT
Service Overview
The introduction of VAT in the UAE on 1st January 2018 marked a significant shift in the region’s fiscal policy, aligning it with global taxation practices. For businesses, this means adapting to a new layer of financial responsibility. VAT compliance is more than filing returns — it’s about maintaining accurate records, understanding tax implications, and responding to audits or inquiries from the Federal Tax Authority (FTA). MBK Accounting & Tax Consultancy LLC (MBK) helps businesses navigate this complex landscape with confidence and precision.
Service Scope
MBK/24A Plus provides comprehensive bookkeeping and accounting services through flexible delivery arrangements(remote service or scheduled client site visits) at monthly or mutually agreed intervals. All accounting transactions are recorded in accordance with International Accounting Standards.
The firm utilizes multiple professional software platforms including Tally, QuickBooks, Xero, and Zoho, and can accommodate any other software system based on the client’s preferences and requirements.
MBK provides end-to-end VAT services including
Registration
MBK assists businesses in registering for VAT with the Federal Tax Authority (FTA). This includes evaluating whether the business meets the mandatory or voluntary registration thresholds, preparing the required documentation, and submitting the application on the FTA portal, ensuring timely and accurate completion while avoiding penalties or rejections.
Key Support Includes:
- Determining eligibility and thresholds
- Preparing trade licenses, financial statements, and supporting documents
- Submitting and tracking application status on FTA portal
- Advising on VAT group registration if applicable
VAT Return Filing
MBK prepares and files periodic VAT returns on behalf of clients, ensuring accurate reporting of all taxable supplies, input tax recoveries, reverse charge on import of goods and services and adjustments.The firm ensures compliance with filing deadlines to avoid penalties.
Key Support Includes:
- Monthly or quarterly VAT return preparation
- Review of sales and purchase invoices for VAT compliance
- Input tax reconciliation
- Timely submission through FTA portal
Voluntary Disclosures
If a business identifies an error in a previously filed VAT return, MBK helps prepare and submit a voluntary disclosure to correct inaccuracies. This service is crucial to maintain compliance and reduce the risk of penalties or audits.
Key Support Includes:
- Identifying discrepancies in past filings
- Preparing disclosure forms
- Submitting corrections to the FTA
- Advising on potential penalties and mitigation
VAT Refund Processing
MBK assists eligible businesses in claiming VAT refunds, including excess input tax or special refund schemes (e.g., for new businesses or tourists). The firm ensures that refund claims are well-documented and compliant with FTA requirements.
Key Support Includes:
- Preparing refund applications
- Supporting documentation (invoices, contracts, etc.)
- Liaising with FTA for approvals
- Monitoring refund status
Audit Assistance
In the event of a VAT audit or inspection by the FTA, MBK provides comprehensive support including documentation review, and response preparation. The firm helps clients understand audit findings and respond appropriately to FTA enquiries.
Key Support Includes:
- Pre-audit readiness assessment
- Organization and review of VAT records
- Responding to FTA queries
- Assistance during audit proceedings
Portal Amendments
MBK helps clients update their VAT registration details on the FTA portal, including changes in business address, contact details, bank information, or legal structure. Maintaining current information is essential for compliance
Key Support Includes:
- Identification ofrequired amendments
- Preparation of supporting documents
- Submission of amendments through FTA portal
- Confirmation of successful updates
Exemptions, Reconsiderations, and Exceptions
MBK guides clients through special applications including VAT exemptions from registration, reconsideration requests against penalties, and exceptions for filing frequency or record-keeping. These applications require detailed justification and documentation.
Key Support Includes:
- Drafting exemption or reconsideration requests
- Preparation of legal and financial justifications
- Submission of applications and follow-ups
- Advisory on outcomes and next steps
VAT Deregistration
In case of liquidation of business or taxable business revenue falling below mandatory threshold limit, MBK assists clients in the process of vat deregistration on FTA portal.
Key Support Includes:
- Drafting and submission of vat deregistration request on FTA portal within prescribed timelines to avoid penalties
- Compilation of supporting documents
- Responding to FTA queries
- Filing final VAT return
- Follow up for deregistration progress
Benefits to Clients
- Full VAT Compliance : Ensures full compliance with UAE VAT laws and Federal Tax Authority requirements.
- Penalty Mitigation : Minimizes risk of penalties and audit issues.
- Streamlined Process : Establishes efficient VAT processes and documentation.
- Expert Audit Support : Provides professional support during audits and refund claims.
Case Studies
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Ensure Tax Compliance With Our Support
