A value-added tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The amount of VAT that the user pays is on the cost of the product, less any of the costs of materials used in the product that have already been taxed.
VAT is introduced in UAE from 1st January 2018 under federal law No. 8 of 2017 on Value added Tax. The Rate of Tax is 5%.
A business must register for VAT if its taxable supplies and imports exceeds AED 375,000 per annum. It is optional for businesses whose supplies and imports exceed AED 187,500 per annum.
A business must register if:
Special Tax treatments are to complied with respect to a transaction which is being done in connection with a designated zone which is announced by FTA. List of designated zones are as follows:
Annual Audit is required in various free zone across UAE in different emirates viz. DWC, DMCC, SAIF etc. Annual Audit is a mandatory requirement by free zone authority in order to renew trade license. Most of the times
these requirements are clearly set out in memorandum of association and other legal documents’ accompanying trade license, but usually missed out due to lack of proper review.
Book keeping is a process of recording day to day transactions systematically in order to provide up to date financial results to its users. Management information system usually called as MIS, is the end result of
Book keeping whereby transactional data is organized viz Profit & loss account, balance sheet and cash flow to submit to the management in order to have accurate decision making.
Various formalities are required when going in to start a business. Extensive communication is required with concerned authorities to fulfill their requirements. We are capable to provide such services to our clients
enabling them to easily enter into a venture.