VAT/Tax Services in Abu Dhabi

How does it affect your business & How we will Help You?

Quick History

The six states of the GCC have agreed to implement VAT (Value Added Tax) for the entire region, beginning back in 2018.  VAT is a general purpose indirect tax, covering the provisioning of both Goods and Services. VAT Tax in UAE is applied at a rate of 5%. In the UAE it is expected to generate in the neighbourhood of Dh12-20 billion of tax proceeds annually, in support of local infrastructure improvements.

VAT implementation results for the first year in the UAE were outstanding where 296,000+ businesses were registered with FTA and 650,000+ tax returns were filed.

Requirements

All companies with taxable supplies exceeding AED 375,000 must register for VAT and submit VAT returns to the Federal Tax Authority (FTA) before the due date. Whether you are new to the region, or just starting a new business, you may feel overwhelmed by the requirements of VAT reporting, if you’ve never encountered them before, but don’t worry… PushDigits Chartered Accountants is here to support you as you become accustomed to the new system.

While it may be relatively new here, it has a well-established place in much of the world. In Britain and Australia it is also known as VAT, but in Canada you’ll hear it referred to as GST (Goods & Services Tax). Our extensive international experience gives us a distinct advantage over other VAT and tax consultancy companies you might encounter!  We know how the system works, and how to prevent problems from arising in the first place.

How VAT Works – QUICK UNDERSTANDING

In the simplest way possible, here it how the Value Added Tax works:

• A farmer (for example) grows dates or harvests cotton, selling his product to a factory. He collects VAT from the factory, which is submitted to the FTA;
• The dates or cotton are then converted to “date syrup” or “cotton sheets” and sold to a retailer, and the factory collects VAT from the retailer on behalf of the FTA, while also obtaining a refund for the VAT paid to the farmer;
• The retailer then sells the date syrup or cotton sheets to a consumer, who pays VAT, which is submitted to the FTA, and the retailer receives a refund of the VAT paid to the factory.

All of these items intermesh to make sure that the individual actually using and benefiting from the product is the one who pays the tax.  For example, the factory owner that buys a new piece of equipment pays the VAT, not the subsequent people buying goods made by the new machine.

Your Professional Tax Consultants in Abu Dhabi

As reported in the Khaleej Times on 12/20/18, the FTA was issuing Notices of Audit to companies to make sure they were in compliances with the FTA rules for reporting VAT.  The notices stated that the audit would commence 5 days following the notice, so there was little to no time to prepare for the audit.

A VAT audit can cause a significant disruption, especially in an office that is not in compliance with FTA regulations e.g due to improper accounting or tax avoidance. This is why you need PushDigits for your tax services to make sure everything is ready, at all times, for a surprise audit by the FTA.  No one wants to be subject to the financial penalties for failure to be in compliance.

Satisfaction Guaranteed

Our customers like to tell us that they are extremely satisfied with our proven experience in tax consultancy, our extensive experience with numerous clients, and the amazing skill and dedication of our highly-qualified accounting and tax consultants.  It may be immodest to say so, but it is really not hard to see why our customers love us!

Our customers tell us they have the confidence to outsource directly to us so they don’t even have to worry about the intricacies of the system.  They are delighted to be relieved of the burden of “figuring it all out” giving them the freedom to get on with doing things that will actually advance and improve their business.

Of course we encourage participation, and will show your staff how to streamline your efforts to make reporting as efficient as possible by giving them training on VAT.  Understanding the needs and requirements of the FTA is more than half of the battle.  We can do it all for you, or we can advise on how to:

• Register with local tax authorities;
• Keep up-to-date about all the changes in Tax and VAT regulations;
• Calculate the VAT payable and refundable;
• File your VAT returns with the local authorities; and
• Learn about all aspects of the VAT return.

In Abu Dhabi (and all of the UAE) it is optional to register for VAT when your taxable supplies or taxable expenses exceed Dh 187,500 per annum.  We’ll show you when and why you might want to register your business with FTA in order to obtain the VAT refunds and pay any VAT Liabilities.

That is just one of the secrets about our expertise.  It’s more than just the letter of the law; it is about applying common sense!  Even registering when it will be a net-zero-sum could be advantageous because it will give you experience with handling VAT before your annual income exceeds Dh 375,000, and registration becomes obligatory—and there is no substitute for experience!

Full-time, Part-time, or Outsource?

Our vast PushDigits staff of over 30 first class, top-rated accountants undergoes constant update-training to make sure they understand every single aspect about bookkeeping, accounting practices, and most particularly, taxation rules.  We understand all of these things intimately, and would be glad to explain them to you, if you desire.  However, one of the things our customers love best about us is being able to hand over all of these accounting responsibilities, confident that all the work will get done and there will never be any problems.

We can provide onsite, full-time accountants on a weekly, monthly, semi-annual, or annual basis, if required.  We can provide part-time accountants, on an hourly, weekly, monthly, or seasonal basis, if that’s what you need.

Nevertheless, by far, the favourite choice is to completely outsource your accounting needs.  This is particularly true for brand new companies, or small companies experiencing large growth.

The Takeaway

Building a functional and effective accounting department is a massive undertaking, and one of the biggest things standing in your way (aside from the sheer expense of paying for it all) is finding enough qualified people to hire.  And that is true even if you don’t consider office space, parking space, salaries, vacation time, sick leave, visa fees, air flight expenses, and provisioning all of Electronic Equipment necessary to do the job.

Hiring VAT and taxation experts is always your best choice.  Hiring the right experts from PushDigits, who are qualified tax consultants, with proven experience in tax consultancy, tax planning, international taxation, business tax, tax resolution with FTA, having extensive experience with numerous clients, and who also happen to understand crises resolution is priceless.

Call us today and let’s get this challenge handled, so you can get on with the business of running your business!