ICB is a trustworthy ally to help you with VAT registration in the UAE. We follow the UAE VAT rules and regulations diligently in all our services related to VAT processes. We stay updated on the latest UAE VAT laws and incorporate them into our procedures.
At ICB, we follow the UAE VAT rules carefully for our VAT services. We stay updated on the latest UAE VAT laws and promptly integrate them into our procedures once officially announced by the government. Currently, the UAE government has outlined specific criteria to determine if you should register for VAT proceedings.
To make sure everything runs smoothly in your business and you don’t run into any legal issues, there are a few important things you need to do regularly.
The following documents are required for VAT:
In the UAE, there’s a 5% VAT (Value Added Tax) on business transactions. Unlike sales tax, which is usually based on the final product or service, VAT is a charge that appears at every stage of a business deal. It’s important to understand the difference between sales tax and VAT. The UAE is business-friendly with clear regulations, making trade easy if you follow the VAT laws. To avoid confusion, it’s recommended to get VAT services and consultations. These VAT rules have been in place since 2018 for all eligible businesses in the UAE.
Some businesses don’t have to pay a tax called VAT, and it’s set at zero percent for them. Examples include services or goods traded outside a group of countries, specific transportation services (like by sea or land), certain property transactions, certain educational or healthcare services, and local passenger transport. It’s important to stay updated on the latest UAE VAT rules for these types of businesses because the tax calculations depend on which category your business falls into. Luckily, ICB has already included the new VAT rules for the UAE in 2021, so if you’re associated with them, you’re following the right rules.
The way tax works for buildings depends on whether they are for business or living. If it’s a business place, like a shop or office, you must pay the regular tax rate, which is 5 percent.
But if it’s a place to live, like a house or apartment, you usually don’t have to pay any tax. This helps people who are buying homes, so they don’t have extra costs. Also, when builders finish making homes and sell them within three years, they don’t have to charge tax on them, making it easier for people to buy houses.
The following supplies will be excluded from VAT:
If you’re a person who is registered for VAT and you’ve paid taxes on items for your business, you can get that tax money back if it’s related to something you’re selling and will be taxed. However, if you spent money on something that isn’t taxed, like exempt products, you can’t get back the tax you paid on that. Sometimes, your spending might be for both taxed and untaxed things, especially in certain situations like in banking. In those cases, you need to figure out and separate the tax you paid for the taxed items and the untaxed (exempt) items. Initially, businesses should use input tax (the ratio of recoverable to total) as a basis for apportionment, but other methods are allowed if they are fair and approved by the FTA.
Choose ICB Tax Consultancy for VAT registration in UAE – where expertise meets personalized service. Let us be your trusted partner in navigating the complexities of VAT registration, allowing you to focus on what you do best – growing your business. Contact us today to embark on a smooth and compliant VAT registration journey. Your success is our commitment.
