Kaiaan can provide VAT registration services in the UAE to help your business comply with the country's Value Added Tax (VAT) regulations..
VAT Registration
Assessing eligibility
Kaiaan will assess your business's eligibility for VAT registration based on the criteria set by the Federal Tax Authority (FTA) in the UAE. We will determine whether your business meets the mandatory threshold for VAT registration.
VAT registration process
Kaiaan will guide you through the VAT registration process, ensuring that all required documents and information are prepared and submitted accurately and on time. We will handle all necessary paperwork and liaise with the FTA on your behalf.
VAT compliance advice
Kaiaan will provide expert advice on VAT compliance, including the various VAT rates, invoicing requirements, and record-keeping obligations. We will help you understand your responsibilities as a VAT-registered business and ensure that you comply with all relevant regulations.
VAT implementation support
If your business is new to VAT, Kaiaan can assist you in implementing the necessary changes to your accounting systems, invoicing processes, and record-keeping practices to ensure seamless integration of VAT into your operations.
Ongoing VAT support
Kaiaan offers ongoing support to help you navigate the complexities of VAT in the UAE. We can answer any queries you may have, provide guidance on VAT-related matters, and keep you informed about any updates or changes to VAT legislation.
VAT training
Kaiaan can also provide VAT training for your finance and accounting teams to ensure they understand the VAT regulations and can carry out their duties effectively. This training can help your staff stay updated on best practices and avoid any potential
Types of VAT Registration Services
There are two types of VAT registration services, companies will choose one category before applying for VAT registration and it will be based on their annual turnover. Following are the VAT registration categories:
Mandatory VAT Registration:
If a business's annual turnover exceeds AED 375,000, it is required to register for VAT. This means that the business must submit an application for VAT registration to the Federal Tax Authority (FTA). Once approved, the business will be issued a VAT registration certificate and will need to start charging VAT on its taxable supplies.
Voluntary VAT Registration:
If a business's annual turnover exceeds AED 187,500 but is below the mandatory threshold of AED 375,000, it has the option to voluntarily register for VAT. This allows the business to reclaim VAT paid on its expenses and enjoy the benefits of VAT registration, even if it is not obligated to do so. The process for voluntary VAT registration is similar to the mandatory registration process, where the business needs to submit an application to the FTA for approval.
Engaging Kaiaan for VAT registration services, to ensure UAE VAT compliance, access expert guidance and seamless support, assuring your business aligns with regulatory requirements. Let Kaiaan simplify the process and provide confidence in navigating VAT regulations in UAE.
VAT Group
Registering as a VAT Group in the UAE allows multiple companies or entities under common control or ownership to be treated as a single taxable person for VAT purposes.
-Creating a tax group has the effect of registering a single taxable person
-A tax group is issued one VAT Tax Registration Number (TRN) for use by all group members, and only one tax return is required for all group members
-Transactions taking place within a tax group are generally disregarded for VAT purposes, meaning that cash-flow or absolute VAT costs that might otherwise be suffered by the businesses concerned are eliminated. Moreover, revenue risks that might otherwise arise on significant intra-group transactions are also eliminated.
Definition of VAT Group
A VAT group is a collection of legal entities or individuals registered for VAT purposes, treated as a single taxable entity for tax obligations, simplifying accounting and compliance.
Eligibility and Criteria
To form a VAT group, companies must meet specific criteria, such as being legally independent but closely bound in financial, economic, and organizational terms, with a clear central management structure.
Benefits
Forming a VAT group can lead to benefits like centralized VAT reporting, reduced administrative burden, improved cash flow management, and the ability to transfer goods and services within the group without VAT.
Application Process
The process involves submitting a formal application to the Federal Tax Authority (FTA) in the UAE. This includes providing necessary documentation and demonstrating compliance with VAT group criteria.
Responsibilities and Liabilities
Once registered as a VAT group, the group as a whole assumes the responsibilities and liabilities of a taxable person, including VAT filings, payments, and compliance with VAT regulations.
How can you proceed with the tax group registration process:
1) Submit an application: Prepare and submit an application to the Federal Tax Authority (FTA) in the UAE, providing all the necessary information about the entities forming the group.
2) Supporting documents: Along with the application, you will need to submit supporting documents, such as company incorporation documents, financial statements, and a declaration of common control.
3) FTA review: The FTA will review your application and may request additional information if needed. They will also verify compliance with the tax group registration requirements.
4) Approval and registration: If your application is approved, the FTA will issue a tax group registration certificate. From that point forward, the entities within the group will be considered a single taxable person for VAT purposes.
Kaiaan offers expert guidance and support for seamless VAT group registration in the UAE. Our specialized knowledge ensures compliance with VAT regulations and eligibility criteria. We streamline the application process, providing comprehensive assistance to establish a VAT group, optimizing tax efficiency for your business.
VAT Return Filling
In the UAE, VAT-registered businesses are required to file regular VAT returns with the Federal Tax Authority (FTA). These returns provide a summary of a business's VAT-related transactions during a specific tax period.
The standard VAT return filing period is quarterly, meaning businesses submit returns every three months. However, some businesses may be eligible for a monthly filing frequency based on their annual turnover or other criteria.
The deadline for VAT return filing and payment is typically 28 days from the end of the tax period. It's important to ensure timely submission to avoid penalties and any potential issues with compliance.
The VAT return consists of various sections where businesses report their taxable supplies, input tax (VAT paid on purchases), output tax (VAT collected on sales), and any adjustments or corrections needed. Additionally, businesses need to report the total taxable sales and purchases made during the tax period.
Businesses can deduct the input tax paid on their purchases from the output tax collected on sales. The resulting amount is the net VAT liability or refund due, depending on whether the output tax exceeds the input tax or vice versa.
VAT return filing is done electronically through the FTA's online portal called "e-Services." Businesses must register for an account on the portal to access and submit their VAT returns.
It is crucial for businesses to maintain accurate and organized records of their VAT transactions, including invoices, receipts, and other supporting documents. These records should be retained for a minimum of five years.
Scope of work for VAT return filing
Our scope of work for VAT return filing typically involves the following key points:
Data Collection
Our VAT experts will gather all relevant financial data and transaction records related to VAT for the specific tax period.
Data Verification and Accuracy
We will review and validate the accuracy of the collected data to ensure it aligns with VAT regulations and is free of errors.
VAT Calculation
Kaiaan will calculate the VAT liability or VAT refund amount based on the collected and verified data, considering input and output VAT.
VAT Return Preparation
Kaiaan's experts will prepare the VAT return form according to the tax authority's guidelines and using the calculated VAT amounts
Submission of VAT Return
Kaiaan will submit the completed VAT return to the tax authority within the specified deadline, following the required format and method.
Payment of VAT Liability
If there's a VAT liability, we will ensure timely payment to the tax authority as per the applicable regulations and deadlines.
Recordkeeping
Our VAT experts maintain organized and easily accessible records of the filed VAT returns and supporting documents for audit and compliance purposes.
Communication and Updates
We will make sure that you are informed about any changes in VAT laws, regulations, or reporting requirements and update the VAT return filing process accordingly.
Consultation and Advisory
Seek professional advice and guidance from Kaiaan consultants or experts to ensure compliance with VAT laws and optimize VAT return filing processes.
By partnering with Kaiaan Accounting, your company can benefit from their expertise and ensure accurate, timely, and compliant VAT return filing in the UAE.
VAT Refund
VAT refund in the UAE is a process that allows eligible businesses to claim a refund of the VAT they have paid on certain expenses. Kaiaan Accounting can assist your company in VAT refund in the UAE:
Eligibility assessment
Kaiaan Accounting can evaluate whether your business meets the eligibility criteria for VAT refund in the UAE. We will review your business activities, expenses, and records to determine if you qualify for a refund.
Expense analysis
Kaiaan Accounting can analyze your company's expenses to identify those that are eligible for VAT refund. This includes expenses such as business-related travel, exhibitions, conferences, and other relevant costs.
Documentation preparation
Kaiaan Accounting can help gather and organize the necessary documentation required to support your VAT refund claim. We will ensure that all invoices, receipts, and supporting documents meet the requirements set by the Federal Tax Authority (FTA).
Refund calculation
Using their expertise in VAT laws and regulations, Kaiaan Accounting can accurately calculate the amount of VAT eligible for refund based on the applicable rates and rules. We will consider any adjustments, exemptions, or restrictions that may apply.
Online filing
Kaiaan Accounting can assist in preparing and submitting the VAT refund application through the FTA's online portal. We will ensure that all information is entered correctly, and the application is filed within the specified deadlines.
Follow-up and coordination
After the application is submitted, Kaiaan Accounting can monitor the progress of your VAT refund claim and coordinate with the FTA on your behalf. We will address any queries or additional information requests from the FTA to expedite the refund process.
Reconciliation and reporting
Once the refund is received, Kaiaan Accounting can assist in reconciling the refunded amount with your company's financial records. We can also handle the necessary reporting and accounting entries to ensure proper documentation and compliance.
VAT Refund in UAE
The taxpayer has the following two options in treating the excess input VAT commonly known as VAT refund
The taxpayer is eligible to request a VAT refund for the excess input VAT. This involves submitting an application to the tax authority, providing the necessary documentation and meeting the specified criteria for a VAT refund.
If the taxpayer chooses not to request a refund for the excess input VAT, they can opt to carry it forward to subsequent tax periods. The excess recoverable tax can be utilized to offset against any payable tax and/or penalties in the future. Alternatively, the taxpayer can choose to apply for a refund at a later point in time when deemed suitable.
How to claim FTA VAT refund UAE?
To claim a VAT refund from the Federal Tax Authority (FTA) in the UAE, you need to follow these steps:
Access the FTA's e-Services portal.
Navigate to the VAT tab, then to the VAT Refunds tab, and then to the form by clicking the VAT refund request button.
Fill out the form. Some fields are pre-populated with information from your account. Check that the information you've provided is correct, then click 'Submit' to submit the form.
After you submit the form, the FTA will send you an email informing you of the outcome of your refund application. The refund will be processed within 5 business days after the claim is approved.
You can confirm the refund amount by checking your balance on the e-Services portal's My Payment tab under the Transaction History section.
By engaging Kaiaan Accounting for VAT refund assistance, your company can streamline the process, maximize the refund amount, and ensure compliance with the regulations set by the FTA in the UAE.
VAT Voluntary Disclosure
VAT Voluntary Registration and Disclosure in the UAE involves the process of proactively registering for Value Added Tax (VAT) or voluntarily disclosing any errors or omissions in previously submitted VAT returns. This voluntary disclosure helps businesses avoid penalties and potential legal actions by the Federal Tax Authority (FTA). Kaiaan Accounting can assist your company in preparing voluntary disclosure as specializes in VAT compliance in the UAE. Kaiaan Accounting has a team of VAT professionals who will guide you through the procedures and submit for Voluntary Disclosure in the exact format and on time to prevent rejection, through the following tips:
Prepare the necessary documentation to submit application for VAT registration through (FTA) portal.
Identify errors and discrepancies in VAT records.
Calculate correct VAT amounts and adjustments.
Prepare and complete the Voluntary Disclosure Form accurately.
Submit the form and relevant documents to the FTA electronically.
Calculate and pay any additional VAT liabilities within the deadline.
Manage acknowledgment and assessment by the FTA.
It's important to note that voluntary disclosures should be made voluntarily before any contact or investigation by the FTA. Deliberately withholding information or delaying voluntary disclosure can lead to penalties and legal consequences.
By engaging the services of Kaiaan Accounting, you can benefit from our expertise in VAT regulations and processes, ensuring that your voluntary disclosure is handled accurately and efficiently. Our experts at Kaiaan can guide you through the entire process, mitigate potential penalties, and help your business maintain compliance with VAT regulations moving forward.
VAT Health Check
At Kaiaan Accounting, we have a team of highly experienced professionals who are well versed in the provisions of UAE VAT law. Our tax team has a wealth of knowledge and expertise in working with both large and MSME companies across various industries. This extensive experience enables us to conduct thorough VAT health checks in UAE, ensuring that all areas are reviewed and assessed for compliance.
During the VAT health check process, we meticulously review your financial records, invoices, expense documentation, ledgers, and other relevant documents. We analyze these records to identify any discrepancies or non-compliance issues, ensuring that your VAT reporting is accurate. Any errors or inconsistencies are flagged, and we provide clear guidance on the necessary corrective actions to rectify these issues.
What is VAT Health Check?
A VAT Health Check is a review or assessment conducted by businesses in the UAE to ensure compliance with the Value Added Tax (VAT) regulations. It involves a comprehensive examination of a company's financial records, transactions, systems, and processes related to VAT.
The purpose of a VAT Health Check is to identify any potential issues or risks that could lead to non-compliance with VAT regulations or result in penalties or fines. It helps businesses to proactively address any shortcomings, correct errors, and implement necessary improvements to ensure compliance with VAT laws.
During a VAT Health Check, several areas are typically reviewed, including:
An evaluation of the adequacy and accuracy of the accounting systems and processes used for recording VAT-related transactions.
Checking the completeness, accuracy, and compliance of invoices, credit notes, and other related documentation required by the VAT regulations.
Assessing the correct treatment of input and output VAT, ensuring accurate calculation and proper reclaiming or payment of VAT.
Verifying that VAT returns are filed accurately and on time, and that all necessary information is included.
Ensuring proper maintenance and retention of VAT-related records, invoices, and supporting documentation as required by the VAT regulations.
What are the benefits of VAT Health Check in the UAE?
The benefits of the VAT Health Check include:
- Regular health checks help businesses identify and rectify non-compliance issues promptly.
- This ensures adherence to VAT regulations and avoids penalties or legal complications.
- Health checks can identify errors or inefficiencies in VAT processes, leading to cost savings.
- Businesses can reduce the risk of overpaying taxes or making mistakes in VAT reclaims.
- Addressing non-compliance early reduces legal and financial risks.
- Regular health checks enhance a business's reputation for transparent and responsible financial practices.
Kaiaan conducts a thorough VAT Health Check, identifying compliance gaps and potential issues in your VAT processes in the UAE. Kaiaan's experts provide tailored recommendations and strategies to enhance compliance, mitigate risks, and optimize VAT efficiency, ensuring your business aligns with VAT regulations effectively.
VAT Penalties Advisory
At Kaiaan Accounting, we have a team of highly experienced professionals who are well versed in the provisions of UAE VAT law. Our tax team has a wealth of knowledge and expertise in working with both large and MSME companies across various industries. This extensive experience enables us to conduct thorough VAT health checks in UAE, ensuring that all areas are reviewed and assessed for compliance.
During the VAT health check process, we meticulously review your financial records, invoices, expense documentation, ledgers, and other relevant documents. We analyze these records to identify any discrepancies or non-compliance issues, ensuring that your VAT reporting is accurate. Any errors or inconsistencies are flagged, and we provide clear guidance on the necessary corrective actions to rectify these issues.
VAT Health Check
A VAT Health Check is a review or assessment conducted by businesses in the UAE to ensure compliance with the Value Added Tax (VAT) regulations. It involves a comprehensive examination of a company's financial records, transactions, systems, and processes related to VAT.
The purpose of a VAT Health Check is to identify any potential issues or risks that could lead to non-compliance with VAT regulations or result in penalties or fines. It helps businesses to proactively address any shortcomings, correct errors, and implement necessary improvements to ensure compliance with VAT laws.
During a VAT Health Check, several areas are typically reviewed, including:
An evaluation of the adequacy and accuracy of the accounting systems and processes used for recording VAT-related transactions.
Checking the completeness, accuracy, and compliance of invoices, credit notes, and other related documentation required by the VAT regulations.
Assessing the correct treatment of input and output VAT, ensuring accurate calculation and proper reclaiming or payment of VAT.
Verifying that VAT returns are filed accurately and on time, and that all necessary information is included.
Ensuring proper maintenance and retention of VAT-related records, invoices, and supporting documentation as required by the VAT regulations.
What are the benefits of VAT Health Check in the UAE?
The benefits of the VAT Health Check include:
- Regular health checks help businesses identify and rectify non-compliance issues promptly.
- This ensures adherence to VAT regulations and avoids penalties or legal complications.
- Health checks can identify errors or inefficiencies in VAT processes, leading to cost savings.
- Businesses can reduce the risk of overpaying taxes or making mistakes in VAT reclaims.
- Addressing non-compliance early reduces legal and financial risks.
- Regular health checks enhance a business's reputation for transparent and responsible financial practices.
Kaiaan conducts a thorough VAT Health Check, identifying compliance gaps and potential issues in your VAT processes in the UAE. Kaiaan's experts provide tailored recommendations and strategies to enhance compliance, mitigate risks, and optimize VAT efficiency, ensuring your business aligns with VAT regulations effectively.
VAT Penalties Advisory
At Kaiaan Accounting, we have a team of highly experienced professionals who are well versed in the provisions of UAE VAT law. Our tax team has a wealth of knowledge and expertise in working with both large and MSME companies across various industries. This extensive experience enables us to conduct thorough VAT health checks in UAE, ensuring that all areas are reviewed and assessed for compliance.
During the VAT health check process, we meticulously review your financial records, invoices, expense documentation, ledgers, and other relevant documents. We analyze these records to identify any discrepancies or non-compliance issues, ensuring that your VAT reporting is accurate. Any errors or inconsistencies are flagged, and we provide clear guidance on the necessary corrective actions to rectify these issues.
What is VAT Health Check?
A VAT Health Check is a review or assessment conducted by businesses in the UAE to ensure compliance with the Value Added Tax (VAT) regulations. It involves a comprehensive examination of a company's financial records, transactions, systems, and processes related to VAT.
The purpose of a VAT Health Check is to identify any potential issues or risks that could lead to non-compliance with VAT regulations or result in penalties or fines. It helps businesses to proactively address any shortcomings, correct errors, and implement necessary improvements to ensure compliance with VAT laws.
During a VAT Health Check, several areas are typically reviewed, including:
An evaluation of the adequacy and accuracy of the accounting systems and processes used for recording VAT-related transactions.
Checking the completeness, accuracy, and compliance of invoices, credit notes, and other related documentation required by the VAT regulations.
Assessing the correct treatment of input and output VAT, ensuring accurate calculation and proper reclaiming or payment of VAT.
Verifying that VAT returns are filed accurately and on time, and that all necessary information is included.
Ensuring proper maintenance and retention of VAT-related records, invoices, and supporting documentation as required by the VAT regulations.
What are the benefits of VAT Health Check in the UAE?
The benefits of the VAT Health Check include:
- Regular health checks help businesses identify and rectify non-compliance issues promptly.
- This ensures adherence to VAT regulations and avoids penalties or legal complications.
- Health checks can identify errors or inefficiencies in VAT processes, leading to cost savings.
- Businesses can reduce the risk of overpaying taxes or making mistakes in VAT reclaims.
- Addressing non-compliance early reduces legal and financial risks.
- Regular health checks enhance a business's reputation for transparent and responsible financial practices.
Kaiaan conducts a thorough VAT Health Check, identifying compliance gaps and potential issues in your VAT processes in the UAE. Kaiaan's experts provide tailored recommendations and strategies to enhance compliance, mitigate risks, and optimize VAT efficiency, ensuring your business aligns with VAT regulations effectively.
VAT Training
Kaiaan can provide comprehensive VAT training in the UAE, covering all aspects of Value Added Tax. The training includes understanding VAT rules and regulations, compliance requirements, invoicing and accounting for VAT, and practical guidance on VAT implementation. Whether you are a business owner, finance professional, or individual looking to enhance your knowledge of VAT, Kaiaan's training programs are designed to meet your specific needs.
The VAT return consists of various sections where businesses report their taxable supplies, input tax (VAT paid on purchases), output tax (VAT collected on sales), and any adjustments or corrections needed. Additionally, businesses need to report the total taxable sales and purchases made during the tax period.
Businesses can deduct the input tax paid on their purchases from the output tax collected on sales. The resulting amount is the net VAT liability or refund due, depending on whether the output tax exceeds the input tax or vice versa.
VAT return filing is done electronically through the FTA's online portal called "e-Services." Businesses must register for an account on the portal to access and submit their VAT returns.
It is crucial for businesses to maintain accurate and organized records of their VAT transactions, including invoices, receipts, and other supporting documents. These records should be retained for a minimum of five years.
Scope of work for VAT return filing
Our scope of work for VAT return filing typically involves the following key points:
Data Collection
Our VAT experts will gather all relevant financial data and transaction records related to VAT for the specific tax period.
Data Verification and Accuracy
We will review and validate the accuracy of the collected data to ensure it aligns with VAT regulations and is free of errors.
VAT Calculation
Kaiaan will calculate the VAT liability or VAT refund amount based on the collected and verified data, considering input and output VAT.
VAT Return Preparation
Kaiaan's experts will prepare the VAT return form according to the tax authority's guidelines and using the calculated VAT amounts
Submission of VAT Return
Kaiaan will submit the completed VAT return to the tax authority within the specified deadline, following the required format and method.
Payment of VAT Liability
If there's a VAT liability, we will ensure timely payment to the tax authority as per the applicable regulations and deadlines.
Recordkeeping
Our VAT experts maintain organized and easily accessible records of the filed VAT returns and supporting documents for audit and compliance purposes.
Communication and Updates
We will make sure that you are informed about any changes in VAT laws, regulations, or reporting requirements and update the VAT return filing process accordingly.
Consultation and Advisory
Seek professional advice and guidance from Kaiaan consultants or experts to ensure compliance with VAT laws and optimize VAT return filing processes.
By partnering with Kaiaan Accounting, your company can benefit from their expertise and ensure accurate, timely, and compliant VAT return filing in the UAE.
VAT Registration for Social Media Influencers
Freelance professionals, a category that includes burgeoning social media influencers of the UAE, are mandated to secure the necessary licenses, and proceed with VAT registration once their annual taxable supplies surpass the mandatory VAT registration threshold of 375,000 AED.
Reaching the VAT registration threshold triggers the requirement for VAT registration and compliance, necessitating a meticulous approach to financial tracking. For young entrepreneurs and social media influencers, managing finances and adhering to regulatory standards can pose a significant hurdle.
Leveraging modern accounting software and hiring experienced financial advisors, these resources can help in maintaining accurate financial records, monitoring revenue thresholds, and ensuring timely VAT registration.
Kaiaan can assist you as a social media influencer in the UAE with VAT-related matters. We can provide guidance and support in understanding your tax obligations as well as assist you stay compliant with VAT regulations. Our team of experts can explain the VAT rules specific to your role as an influencer and help you navigate through the necessary processes.
Whether it is registering for VAT, filing tax returns, or managing any VAT-related issues that may arise, we ensure influencers maintain accurate financial records and comply with VAT regulations, minimizing the risk of penalties. We are here to provide you with helpful and reliable assistance.
Kaiaan can assist social media influencers in the UAE regarding VAT by
- Offering guidance on VAT registration when reaching the threshold.
- Assisting in understanding VAT rates and applicable exemptions.
- Ensuring accurate financial records for VAT compliance.
- Offering expert advice on collaboration agreements and VAT responsibilities.
VAT De-Registration
VAT de registration is the process of formally canceling a business's VAT registration with the tax authorities. This typically occurs when a business ceases to meet the criteria for VAT registration, such as if its taxable turnover falls below the mandatory registration threshold. Deregistration is crucial to ensure compliance with tax regulations, and it relieves the business from the responsibilities of collecting VAT on sales and allows for the recovery of input tax.
Voluntary Deregistration
When a business chooses to cancel its VAT registration voluntarily, usually due to falling turnover or cease taxable activities.
Mandatory Deregistration
Tax authorities enforce deregistration when a business no longer meets the criteria for VAT registration, often due to a significant decrease in taxable turnover or if they are no longer considered a legal entity. (Company Closed)
VAT compliance advice
Kaiaan will provide expert advice on VAT compliance, including the various VAT rates, invoicing requirements, and record-keeping obligations. We will help you understand your responsibilities as a VAT-registered business and ensure that you comply with all relevant regulations.
VAT implementation support
If your business is new to VAT, Kaiaan can assist you in implementing the necessary changes to your accounting systems, invoicing processes, and record-keeping practices to ensure seamless integration of VAT into your operations.
Ongoing VAT support
Kaiaan offers ongoing support to help you navigate the complexities of VAT in the UAE. We can answer any queries you may have, provide guidance on VAT-related matters, and keep you informed about any updates or changes to VAT legislation.
