VAT Accounting Entries in the United Arab Emiratesby Radhika Chawla Marketer
The VAT came into effect in the UAE, a part of GCC countries in January 2018. The current proposed rate of VAT is 5 %. A business house whose imports exceed AED 375000PA pays the government the tax that it collects from its customers and they receive a refund from the government on the tax that they paid to its suppliers. For any inquiry regarding registration, one can contact FTA through the enquire form. If you are running out of or having problems with the proceedings you can contact Alankit Management Consultancy which offers reliable VAT Accounting services for start-ups and established companies of all sizes across the UAE.
VAT Accounting Procedure in UAE
VAT was introduced in UAE on 1st January 2018. The rate of VAT is 5 percent which provides UAE with a new source of income which in turn is used to provide quality public services. This was introduced with the idea to reduce dependence on oil and other charges to bring transparency in the longer run.
VAT is collected on behalf of the government. A Business whose taxable supplies and imports exceed AED 375,000 PER ANNUM must get itself registered under VAT. There’s equal application of VAT on tax-registered businesses managed on the UAE mainland and free zones. But in case if a free zone is defined by the cabinet as a designated zone then it must be treated as outside UAE for tax purposes.
VAT registered businesses must submit a VAT return to the Federal Tax Authority at the end of each tax period. The VAT return file shows the taxable person’s VAT liability. When the question of filling a VAT return comes it can be done electronically through the FTA portal. The VAT returns must be filled within 28 days of the end of the TAX period. When the question of implication arises it can be mentioned that businesses will properly document their income, costs, and associated VAT.
ALANKIT UAE VAT
Alankit serves as the manager of all the e-Governance, Accounting, and Financial Services requirements. Alankit with its global reach serves as the one-stop hub for many clients when the question of accounting and finance arises.
Let’s see why we can rely on Alankit -
1. The skilled team at Alankit works quite hard to make the most of their interaction with customers to continually evolve and better the service procedures.
2. It strives to make things easy and convenient for ensuring the best possible client experience.
3. From keeping updated & the latest regulations to applying the correct VAT Accounting treatment to each transaction, Alankit makes the process simple, easy, and convenient with a customer-centric approach.
Created on Feb 12th 2021 00:56. Viewed 59 times.