Is there a consistent deadline for filing and paying VAT returns in the United Arab Emirates?
Yes, the deadlines for filing VAT Services in Dubai and paying VAT are the same. The tax period ended on the twenty-eighth day.
Is it possible for an unregistered company to obtain the input tax credit?
Only a business that is registered with the UAE VAT laws is eligible to claim the input tax credit.
I have a tax registration on file. The shift in market conditions has caused a change in the nature of my business. Should I notify the tax authorities of the change?
Yes, you have a duty to notify the FTA of any changes to your tax registration within 20 days of the new information.
What is a mechanism of reverse charge?
It is highly probable that a provider of goods or services that a business imports is not registered in the United Arab Emirates, which prevents him from charging VAT on supplies. In these situations, the importer of the products or services is responsible for keeping track of and paying the VAT. It is known as the “reverse charge mechanism” since the importer of the goods or services is responsible for paying the VAT.
Is it possible for an importer to get an input tax credit for the VAT they paid using the reverse charge mechanism?
Indeed, an importer may submit a reverse charge claim for the input tax credit for the VAT paid.
Where will the supply be if the products or services are imported into the United Arab Emirates?
The UAE will be the place to shop for imported products or services.
What do VAT services cover?
- Confirmation that the tax return is accurate
- Confirmation of output tax paid on local sales, as well as the categorization and filing of sales data according to the emirate
- Verification of the reporting of transactions involving the import of goods and services
- Evaluation of Any Adjustments Made to the Goods Imported into the UAE
- Verification of supplies that are exempt and zero-rated
- Confirmation of the input tax credit claimed for expenditures and purchases
- Examining books of accounts and other relevant documents and registries to ensure the accuracy and comprehensiveness of the returns
- Based on the aforementioned verification, they recommend submitting a voluntary disclosure if necessary.
Voluntary Disclosure Submission
An organization can avail itself of the following services from the FTA in order to file a voluntary disclosure:
- Examination of the case’s facts, supporting information, and supporting documentation
- Drafting a letter to be sent with the application for voluntary disclosure
- The voluntary declaration being submitted via the FTA portal
- Assistance in responding to the FTA’s inquiries about the voluntary disclosure application
Conclusion: To make sure that correct financial information is available and reported in the tax return, all discrepancies are found and noted, and accounting records are checked. VAT audits assist in identifying significant shortcomings in the organization’s adherence to UAE VAT laws as well as areas that need to be improved in order to lower the overall risk of non-compliance. Usually, a VAT audit report includes all the data and suggestions required for the organization to improve its adherence to VAT laws.