VAT in the UAE Overview and Measures Taken by UAE Government in COVID-19 Pandemic

 


The Federal Tax Authority (FTA) has given the list of provisions across different sectors that will be liable to Value Added Tax (VAT) from the start of 2018. From all the sectors, there are few supplies in the sectors like real estate, financial services and transportation will be totally exempt from VAT. 

VAT in the UAE: All You Need to Know -

VAT in UAE was introduced on January 1st, 2018 and thereafter it has been followed and executed successfully.

VAT in the UAE is considered to be as a new source of income which will be continued to be utilised to provide high-quality public services as well as it will help government move towards its vision of reducing dependence on oil and other hydrocarbons as a source of revenue. However, everything has been affected because of the COVID-19 pandemic. Because of this, numerous actions have been set up by the UAE government to give relief to businesses. Various measures have been taken by the government of UAE to impede the effect of Covid in economy.

Measures Taken by The UAE Government due to the COVID-19 pandemic: -

  • The ‘Targeted Economic Support Scheme’ is a primary measure introduced: -

This scheme has been introduced on 15th March 2020 in UAE and implemented to provide temporary relief in terms of supporting banks in order to encourage lending to private companies and small organizations which have been affected due to the pandemic. It has been taken by the federal government of the UAE.

The other measures include decrease in fees for renewing licenses, postponing date for return filing, tax payment, and stimulus packages for supporting local economies.

Also, there have been changes in employment regulations so that employers and employees have better flexibility during the pandemic.



VAT Returns Filing in UAE: -

VAT Returns Filing in UAE is completed through the online portal of the Federal Tax Authority (FTA) in their e-services.

Using this revenue, the UAE Government authority plans to offer various types of public services, including healthcare facilities, constructions, transportation, public schools, parks, waste control, and many more. VAT in the UAE is a new income stream having a non-oil revenue for the Emirates.

Below are the steps are involved in filing VAT returns in the UAE: -

Step 1: Log in to the eServices portal

Step 2: VAT Tab

Step 3: Taxable Person details

Step 4: VAT return period

Step 5: VAT on sales and all other outputs

Step 6: VAT on expenses and all other inputs

Step 7: Net VAT due

Step 8: Additional reporting requirements

Step 9:  Declaration

VAT registration is mandatory for businesses if your taxable supplies has exceeded AED 375,000 over the past year time frame and to file VAT returns one must submit a form carrying information of Sales, Purchases, and Expenses made during a specific time of tax period.

We provide VAT Consultation support to the SME businesses in the UAE and assist them in understanding the most recent guidelines and tax provisions. 

Apart from that our specialists also offer a few different types of support including Outsourced Accounting, DIY Accounting and Administrative Support Services.

For information, you could reach us at info@accountantsbox.com or contact us here
Location: Dubai - United Arab Emirates

Comments

  1. AnonymousJune 16, 2021 at 11:54 PM

    I Read the full article which gives complete information on vat consultants in Dubai. This blog provides a complete guide on it.
    vat consultants in Dubai

    ReplyDelete
  2. Parsh accounting and bookkeepingJune 23, 2021 at 10:33 PM

    Thanks for the Informative and Interesting Article. I would like to add something for them who look up for any VAT services. Our aim is to give single tick access to people and organizations for all their VAT Experts needs.

    VAT Consultant in Dubai | VAT Registration in Dubai | UAE VAT Laws

    ReplyDelete

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