Vat Services in Dubai, Abu Dhabi & UAE

Examining the financial information and records of UAE taxpayers is known as a VAT audit. The Federal Tax Authority (FTA) ascertains the accuracy of the taxpayer’s VAT liability through a VAT audit. Following that, it keeps track of whether or not the taxpayer complies with the applicable UAE VAT laws.

A return of VAT Understanding Dubai is crucial to adhering to UAE VAT regulations. You’ll comprehend your internal tax processes in relation to the VAT legislation in the UAE. Finding the non-compliance locations and fixing them within the bounds of UAE law is the first step. Thus, prior to the FTA performing a VAT audit, you need to ensure that you are well-equipped to evaluate your compliance.

VAT Registration: Business Need for VAT Services

Businesses must complete the required documents and submit them online through the Federal Tax Authority (FTA) portal. Here’s how to register VAT in Dubai – 

• Create an account on the FTA web portal.
• Provide the necessary documents – 

• Copy of the trade license
• Passport and Emirates ID copies of owners/shareholders
• Contact details
• Bank details
• Turnover declaration
• Sample invoices

There are two types of VAT registrations, as below – 

• Mandatory Registration: For businesses with an annual turnover exceeding AED 375,000.
• Voluntary Registration: Available for businesses with a turnover above AED 187,500.

Application Review and TRN Issuance

• FTA reviews the information and documents submitted.
• If requirements are met, a Tax Registration Number (TRN) is issued within 2-3 working weeks.

Post-Registration Requirements

• Align reporting structure with VAT compliance:
• Maintain accurate books of accounts.
• Issue tax invoices, credit notes, debit notes.
• Keep records of all inward and outward supplies.

VAT Compliance in UAE

Filing VAT Returns

Businesses registered for VAT in Dubai must file periodic returns declaring the VAT collected from customers (output tax) and the VAT paid on business expenses (input tax). The difference between output and input tax is the net VAT payable or reclaimable. VAT returns must be filed by the 28th day of the month following the end of the tax period.

Failing to file returns on time can result in penalties ranging from AED 2,500 for failure to notify the FTA about charging taxes to 300% of the tax evaded for tax evasion. We assist clients in preparing accurate VAT returns, ensuring timely filing, and responding to any queries from the tax authorities.

Record Keeping

Maintaining complete and accurate records is critical for VAT compliance in Dubai. Businesses must retain invoices, receipts, and other documents supporting the VAT charged and paid for at least 5 years. We help clients set up proper record keeping systems, provide guidance on the required documentation, and ensure records are well-organized and readily available for audits.

VAT Payments

VAT payments must be made by the 28th day of the month following the end of the tax period. Payments can be made electronically via bank transfer or through the EmaraTax online platform. Late payments are subject to penalties and interest. We ensure timely VAT payments by providing payment instructions, monitoring due dates, and coordinating with clients and the Federal Tax Authority.

VAT Advisory Services at MBK Auditing

MBK Auditing, a leading audit and accounting firm in Dubai, offers comprehensive VAT advisory services to businesses operating in the UAE. Their team of experienced professionals provides expert guidance on VAT compliance, ensuring that clients meet the requirements set by the Federal Tax Authority (FTA).

VAT Registration and Compliance

MBK Auditing assists businesses in registering for VAT, filing periodic returns, and maintaining accurate records as required by the FTA. They also provide guidance on VAT payments, ensuring timely compliance and avoiding penalties.

VAT Training and Advisory

The firm offers VAT training and advisory services, helping businesses understand the implications of VAT on their operations. This includes guidance on VAT rates, exemptions, and zero-rated supplies, as well as advice on VAT planning and optimization strategies.

VAT Audit and Health Check

MBK Auditing conducts VAT audits and health checks to identify areas of non-compliance and provide recommendations for improvement. This service helps businesses to rectify any errors, minimize the risk of penalties, and ensure that their VAT processes are aligned with the FTA’s regulations.

VAT Representation

In the event of a VAT audit or dispute with the FTA, MBK Auditing provides representation services, ensuring that clients’ interests are protected and that they receive fair treatment.

By engaging MBK Auditing’s VAT advisory services, businesses in Dubai can ensure compliance with VAT regulations, minimize the risk of penalties, and optimize their VAT obligations. The firm’s expertise and guidance enable clients to navigate the complexities of VAT, allowing them to focus on their core operations.

Post-Audit Services

MBK Auditing offers specific post-audit services that include assistance with follow-up actions and disputes. Their services encompass addressing audit findings, implementing corrective measures, and responding to queries from regulatory authorities. Additionally, in case of disputes, MBK Auditing provides representation services before relevant authorities to protect clients’ interests and ensure fair treatment. By engaging MBK Auditing for post-audit services, clients can navigate the complexities of audit follow-ups effectively, minimize the impact on their business operations, and maintain compliance with regulatory requirements.

Our Process of VAT Auditing and Registration

Taxpayers receive notice from FTA at least five days prior to the VAT audit. All VAT return paperwork and other supporting documentation must be retained by the taxpayer. To make the audit process easier, the staff members in charge of the accounting and tax records must also be present. Among these records are – 

• Provide both receipts and invoices.
• Supplier tax invoices and associated paperwork
• Notes on tax credits
• Records proving the origins and destinations of goods
• declarations for customs
• Records of non-deducted input taxes

For assessment, tax auditors require all of these documents. They monitor all disparities in payments, receipts, and the records of all transactions that are related to VAT. As a result, any ambiguous or questionable data is noted and then double-checked for errors.

Why Choose Our Services for VAT Auditing and Registration

When choosing a VAT service provider in Dubai, MBK Auditing stands out for several key benefits. As an established audit and business advisory firm, MBK Auditing has a team of experienced accountants and auditors renowned for delivering high-quality accounting and audit services. Our expertise ensures accurate VAT compliance and optimization. Offering a comprehensive range of VAT services, including registration, filing, record keeping, training, advisory, audits, and post-audit support, MBK Auditing simplifies VAT management for businesses. By engaging MBK Auditing, businesses can ensure compliance with VAT regulations, minimizing the risk of penalties and disputes with the Federal Tax Authority. 

MBK Auditing provides representation services to protect clients’ interests, ensuring fair treatment and effective dispute resolution. Moreover, we are known for our commitment and client satisfaction, MBK Auditing is a trusted partner in the UAE, helping businesses optimize VAT obligations in addition to accounting and bookkeeping Dubai, and enhance overall financial management. 

Our history of excellence in the financial sector, our firm has established itself as a trusted partner for businesses seeking comprehensive VAT solutions. Our team of VAT consultants boasts extensive qualifications, including certifications from recognized accounting bodies and years of hands-on experience in VAT compliance, registration, and advisory services. We stay abreast of the latest VAT regulations and trends to ensure our clients receive accurate, timely, and strategic advice. At MBK Auditing, we are committed to helping your business navigate the complexities of VAT with confidence and ease.

For more information or any inquiry related to our services, please feel free to drop a message or simply email us at – info@mbkauditing.com.

To request pricing information or a custom proposal, please contact us. We’ll be happy to discuss your specific needs and provide a tailored solution.