Automated VAT Filing in Dubai

Beginning January 1, 2018, the 350,000 companies doing business in Dubai were required to abide by a five percent levy thanks to the imposition of the VAT (value added tax). These levies including VAT and excise taxes were done in response to lower than ever oil pricing to ensure the government has sufficient resources to maintain services. For companies however, this means they must be in compliance with the new rules. Tax  Planning Required One of the challenges faced by small and medium enterprises (SMEs) is that  fewer than half  are prepared for this change. This could mean they are subject to unexpected penalties which will impact their bottom lines. Fortunately, in some cases, the Federal Tax Authority (FTA) will waive fines and extend deadlines if they are requested to do so, but this also means your company must be prepared to complete the proper filing, only at a later date. Technology Issues We understand the implementation of the new system ...

In January 2018 the UAE implemented the Value Added Tax (VAT) on the consumption of most goods and services in Dubai.  Here’s what you need to know about automating your VAT filing in Dubai . Does My Business Need to Pay VAT? Part of an overarching attempt to reduce reliance on oil-generated income, VAT is a transaction-based tax applied to most goods and services.  Levied at multiple steps in the supply chain, VAT is ultimately paid by the consumer but is collected by businesses.  (Guidance on zero-rated and exempt supplies can be found here.) Why Automate VAT Filing Calculating and reporting VAT can be complicated.  Businesses must first register for VAT, then track and collect VAT on goods and services they supply, while paying it on goods and services they consume.  At the conclusion of each tax period, businesses are required to report and pay their tax liability–the amount of VAT they owe to the government minus any credits for VAT pa...