Why SME Businesses Require Outsourced CFO Services

Do you know why many SMEs fail to thrive in Dubai? It is because they don’t understand the right time to hire help or outsource tasks. A business runs through several strands and taking care of all of them is possible, but not fruitful in the long run. Especially when it comes to finances, you need support from experts. Outsource CFO services to ease the financial burden from your shoulders, strategize your monetary system, earn huge profit, and scale like never before!

Hiring CFO services will regulate your finances and show you endless possibilities to improve your business. Read along to find out more details on CFO services in Dubai, their importance, and why you need them for your SME.

Who is a CFO?

CFO or a Chief Financial Officer is a professional expert who is responsible to deal with all thing’s finances. Right from budgeting and managing investments to analysing the financial market and formulating growth-oriented strategies, a CFO will be your support system to carve your business’ path to success.

SMEs usually fall into the spiral of thinking that CFOs are for large-scale businesses, probably due to the cost of hiring them. If you talk about having a full-time CFO on board, then yes it can cost you a lot of bucks. But what if we say you can outsource CFO services?

Why do you need to Outsource CFO Services in Dubai?

SMEs can enjoy all the premium benefits of having a CFO while not being too harsh on their limited budget. Outsourcing CFO services and hiring them virtually for part-time will do wonders for your business’ financial stem. So here is a quick list of all the things a CFO could do:

  1. Analyse, audit, regulate, and strategize your cash flow system.
  2. Calculate investment risks and guide you towards making healthy financial decisions.
  3. Study the market thoroughly and propose a plan to endure maximized monetary benefits.
  4. Manage liquidity, strategic planning to increase ROI, financial forecasting, and reporting.

But you may question, is bookkeeping not enough? Obviously not. Gone are the days when the competition was low and markets were at peace. Today, business is all about staying at par with the trend and clever financial planning while reflecting your business’ authenticity, purpose, and ideas.

CFOs are the right people who can align your financial goals with the essence of your organization and keep up with the fast pace in the market.

When do SMEs need Virtual CFO Services?

As a business owner, it can seem overwhelming to decide whether or not now is the right time for hiring a CFO. While the decision depends on your business type, module, investment, planning, and goals, here are a few indicators to realize that it’s time to level up the game and hire a CFO virtually or part-time.

  1. You are on a growth spurt – When things in your business are moving forward and growth seems evident, then talking to a CFO can be the right step. While going along the upward spiral the chances to trip off and descale are more. So having a virtual CFO at your side to discuss the current plans and future strategies to prevent any downward flow is a wonderful idea.

 

  1. When the cash flow is all tangled – Cash flow issues are where many SMEs throw in the towel. If you are struggling with cash flow management, then that is a big indicator that you need the help of a CFO.

 

  1. A financial decision blocks our way – CFOs are critical thinkers and adept at making difficult decisions. Whether it is about expanding your business, finding the right investors or you investing in something, then CFO is who you need.

Takeaway:

It is tough to decide if you should outsource CFO services, especially when you are running on a restricted budget while managing so many other things on your plate. But virtual CFO services in Dubai are meant to benefit you with exemplary financial support while saving you time and money. Make that big move and get yourself a virtual CFO who will work collectively with you for improving your business by multiple folds.

How Outsourced CFO Services can Add Value to your Business

Finances and their management are always one of the top concerns for businesses across all scales. To ease the hassle of regulating all the monetary ins and outs, businesses, particularly large-scale or multinational organizations have an in-house CFO or Chief Financial Officer.

However, when we talk about SMEs, they are always rugged off in deciding whether hiring a full-time CFO is worth all the money and effort. Well, not really. When you run on a limited budget, you can outsource CFO services and find the solution to all your financial issues virtually.

Virtual CFO services in Dubai are ideal to tackle your ongoing struggles with finances, strategize for the future, and work on meeting your business goals. The best part of opting for a part-time CFO is that you get to choose the type of service and get dedicated support, especially for it. Here are some ways how outsourced CFO services can bring value to your business.

1. Forecasting:

Financial forecasting is key to preparing an organization for meeting its business goals. A virtual CFO will thoroughly audit, research, plan strategies, and execute them to lead you from where you are to where you want to be.

2. Reporting:

When you outsource CFO services you hire a support system that performs efficient accounting/bookkeeping strategies and knows how to implement that data for financial betterment. CFOs are adept at churning data into effective reports that can shape the business’ budget, investments, and other related activities.

3. Budgeting:

Budgeting is the key to attaining long-term financial security and growth. With appropriate forecasting, accurate reporting, and mindful planning, a virtual CFO will help you budget your finances in a well-structured format so you maintain liquidity and enjoy a stabilized cash flow.

4. Complete financial strategy reframing:

If things seem too straining financially, then it’s time you need a fresh look at your already existing framework. Having a virtual CFO on board will give you new perspectives and ideas to realign or restructure your plans to stay at par with the current trends and market values.

5. Cash-flow management:

Improper cash flow is where many businesses fall. CFO services in Dubai will help in managing your ins and outs effectively by identifying the necessary and unwanted expenses, changing commission patterns, negotiating client/vendor contracts, renewing pricing schemes, managing the supply chain, etc.

6. Fundings and Investments:

The expertise of a CFO will help you make critical decisions in regards to when, how, and who you would need as investors. They can assist in deciding what sort of financial aid the organization requires to take that plunge and also direct the investments to better places.

7. Support for Acquisitions and Mergers:

When talking about acquisitions and mergers, you need a critical eye to observe, analyse, research, decode, and strategize– and who could do it better than a virtual CFO. Their keen observation skills can extract information on the financial health of the party, research how profitable it could turn out for you, help you through the paperwork, etc.

Key Points:

Virtual CFO services in Dubai are a boon to all organizations regardless of which scale they belong. Outsourcing CFOs will save your time, money, and effort while adding immense value to the organization. You can hire them as per your need and acquire promising solutions to any sort of financial issue you might face.

From formulating your budget and preparing financial reports, to supporting critical financial decisions and forecasting, virtual CFO services are a complete package for your organization’s growth. As a business owner with a limited budget, it may feel overwhelming to outsource CFO services, but once done, it is only going to push the business towards betterment and growth.

Why Do Companies Hire Bookkeeping Services in Dubai?

Managing and keeping track of finances is an integral part of every company. Analysing your company’s finances, bank accounts, and financial statements ensures your operations are running smoothly and helps you reduce and avoid extra expenditures. However, regardless of your business size, handling your finances alone is not easy, especially when you have a hundred different business items to manage. Hiring bookkeeping services in Dubai will help you keep track of your financial data.

 

Bookkeeping services provide you with a team of financial experts who remove the burden of attending to your finances from your shoulders. Businesses, especially small businesses or start-ups, find it challenging to make room in their budget to employ a qualified accountant permanently. Thus, hiring bookkeeping companies is a better choice. Bookkeeping companies assess your financial operations and offer you expert insight to manage them, which helps improve your business.

What are the Benefits of Hiring Bookkeeping Services?

Time Savings

Running a business requires looking after multiple operations simultaneously: manufacturing, advertising, security, clients, etc. Your plate is already full, so adding, finding, and employing an accountant to handle your finances would only add to your tasks. Recruiting and hiring a new person is a lengthy process. You have to spend considerable time looking for an accountant, interviewing them, and explaining tasks to them.

 

Outsourcing bookkeeping services will save you the time, energy, effort, and resources to look for a qualified accountant. Bookkeeping services will send a team of financial experts to analyse your financial records.

 

Another benefit of bookkeeping services is hiring them on a project-to-project basis. You can outsource bookkeeping companies as you take on more projects, saving you from having to keep them on permanently.

Cost-efficiency

Bookkeeping services in Dubai are cost-friendly. Employing an accountant would require you to give them a salary and additional benefits such as paid leave. Outsourcing bookkeeping companies allows you to pay them per project without compromising on the quality of their services.

 

Scaling Becomes Easy

Bookkeeping companies have the tools that can scale your data quickly and affordably. Bookkeeping services are flexible. They can increase or decrease their workforce according to the project. If your project requires more accountants than you have or can afford, bookkeeping services will ensure there are enough qualified accounts to assist you. You would have to keep finding and employing new people with in-house accountants when you run short of personnel.

Expert Insights

Bookkeeping services provide their knowledge and expertise to assist you. Companies send a group of professionals who offer their help and work on your projects swiftly. Bookkeeping companies in Dubai work with various clients, so they have additional knowledge, experience, and qualifications to handle your finances. They know the latest accounting methods, tools, and techniques and can give you guidance and tips accordingly.

 

Working with qualified professionals ensures your finances are in capable hands. Bookkeeping services will offer you advice on improving your business, saving money, filing your taxes, and boosting your company cost-efficiently.

Final Thoughts

If you are setting up a business in Dubai and want to handle your finances, outsourcing bookkeeping is a better option than employing in-house accountants. Hiring bookkeeping services is cost-efficient and save you the time and resources of hiring accountants. With professional services, you would also receive their expertise and qualified tips.

 

Most Common Errors made While Filing a VAT Return in the UAE

The UAE government introduced VAT or Value Added Tax for businesses that exceed an annual turnover of AED 350,000. The VAT system was first introduced in January 2018, after which companies in the UAE Mainland and Freezones have levied taxes on every sale they made. Before the tax period ends, the taxable businesses must file their return through the online FTA portal. While doing so, many companies make errors and end up paying heavy penalties unnecessarily.

Businesses must take proper support from VAT registration consultancies and file the returns with zero errors. The purpose of this article is to highlight the most common mistakes you may fall into while filing your VAT return. Here are the prevalent VAT filing errors to avoid in the UAE.

1. Falling in Calculation Errors

One of the very first pitfalls could be miscalculations. Companies should realize that errors in computing the liable taxes appropriately can put them under massive loss. A well-integrated and systemized procedure must be adopted so that the right amount of taxes is levied on different goods and services. Moreover, it is mandatory for businesses to stay at par with the latest VAT rules to avoid errors and miscalculations.

2. Lack of Proper Documentary/Records

Maintaining an up-to-date record of the business’s ins and outs is key to filing VAT returns effectively. The UAE government mandated that taxable companies must have a full-fledged record of sales, purchases, imports, exports, payment receipts, bank statements, transactions, and salaries for the past five years. Failure of which could lead to unnecessary trouble and heavy penalties.

3. Missing to record Exempted and Zero-rated Sales

You may successfully file your VAT returns including every detail on the inputs, outputs, and payables or receivables at the end of the day. However, missing to record the entities that are tax exempted or zero-rated can impact your filing tremendously. Companies must file their exempted sales to the FTA appropriately in addition to their regular tax information.

4. Failing to File the Reverse Charge Mechanism (RCM) Transaction

The Reverse Charge Mechanism comes into the picture when a company imports goods or services. In normal circumstances, the supplier collects tax on every sale they make and later pays it to the government as a return filing. In the case of RCM, where imported goods/services are concerned, the customers are responsible to pay the VAT directly to the government and the supplier need not pay VAT on import items. Many businesses fail to file the RCM transactions and issues arise during filing their input VAT.

5. Lack of Planning and Delayed Submission

Having a pre-planned strategy to record the transactions and stay updated with the latest VAT rules will prevent your business from unwanted fines. Since the VAT system started very recently, businesses still struggle to ensure systemization and planning while filing returns. Due to this, many cross the deadline and are levied penalties by the government. So, make sure to get regular VAT health checks done and refine your business policies for smooth VAT filing.

Takeaway

VAT came into existence with the purpose of generating additional revenue sources apart from oil and hydrocarbons. The amount is then again utilized by the UAE government for advancements and improvements across the Emirate. Since all of this procedure is still new to many businesses, make sure you keep yourself away from the errors while filing your VAT return. Keep an eye on the tax deadline, be aware of the new changes, include zero-rated sales and RCM for effective VAT filing in the UAE.

5 Important Facts about VAT Consultants in Dubai

Since the time the FTA announced it to be mandatory in 2018, Value Added Tax or VAT has been the talk of the town for businesses of all levels. Filing your VAT returns in the UAE can sometimes be a pain in the neck. It is tough for the common businessman to wrap their heads around all the tax-related information with so many legal rulings and conditions and frequently changing policies. It is where VAT consultants come into the picture. The VAT consultants in Dubai are experts in decoding the complicated VAT returns stuffs and simplifying your tax filing.

An organization may reach out to VAT consultants for almost everything related to tax. VAT consultants are of great help for your organization right from identifying the appropriate VAT on your goods/services to filing the returns with every minute detail and zero errors. Here are some brilliant facts about VAT consultants that clears any misconceptions you may have.

Why VAT Consultants in Dubai are your Supporters?

1. They take up all forms of tax issues and solve them for you

VAT consultants are adept at transforming your business’ functioning in compliance with the current FTA requirements and trends. They offer assistance to deal with varied tax-related issues. It includes accounting, book-keeping, planning and strategizing your VAT processes, VAT filing and reducing liabilities, maintaining and recording your purchases, sales, etc., detecting miscalculations, and avoiding delayed submissions. They are your one-stop solution for all tax issues.

2. Save both your time and energy

When experts take to work, the time and energy invested are reduced by multiple folds. Make sure to get in touch with experienced VAT consultants to ease your tax submission. These professionals are well-equipped to analyze risks, minimize them, and reduce liabilities with appropriate accounting and filing.

3. VAT consultants help improvise your business

Joining hands with VAT experts will not just relieve your tax filing burden, but also facilitate your organization to improve financially. An efficient consultant will thoroughly examine the ins and outs of your business, formulate a robust VAT strategy, and help in identifying the loopholes. They offer exclusive ideas to improvise the profitability of your organization.

4. Prepare your VAT filing sheet with ease

Doing the filing of your VAT returns on your own is possible but that equally raises the chances of making evident mistakes which can leave you with heavy penalties. A VAT filing service provider frees you from this tedious task and takes up the responsibility of auditing your accounts. They monitor the calculations, including the exempted sales, and managing the RCM (Reverse Charge Mechanism), etc. Moreover, expert VAT consultants in Dubai ensure that your tax submissions are on time and error-free.

5. Communicating with higher tax authorities & offering accurate data

Tax consultants in Dubai do all the talking with the higher authorities to prepare the most accurate VAT filing sheet for your business. You, as an organization, will be freed from the time-consuming task of dealing with the officials. Besides, their expertise and knowledge help your tax filing stay at par with the ongoing requirements of the government.

Conclusion

VAT can be a very complicated process to deal with. Since it is quite new for the market holders in the UAE, it requires both time and effort to understand the compliances and abide by them. Under such circumstances, VAT consultants in Dubai are saviors. They are professionals with adequate knowledge and qualifications who keep you up-to-date with the latest norms. They help you formulate proper plans, audit your finances, assist you maintain records, and file your VAT returns with utmost accuracy and reliability.

 

What Are The Advantages Of VAT Registration In Dubai?

The United Arab Emirates has become one of the first countries to apply an indirect tax on all taxable products and services. We’ll take a deep look at the benefits of VAT registration in  UAE in the region in this piece.

The Benefits of VAT in the UAE

The UAE government established VAT registration in UAE  because it provides the following benefits:

  • VAT boosts personal savings and investment – one of the main arguments for adopting VAT is that it stimulates personal savings and investment.
  • The indirect tax is transparent and imposes a minimal burden on consumers because they collet it in pieces at many points in the distribution, supply, and manufacture of products and services.
  • Facilitates business transactions – in the UAE, organizations, and suppliers prefer to conduct business with SMEs and non-VAT-registered businesses. If your company fails to submit valid VAT invoices, established businesses may be unwilling or hesitant to do business with you. Firms registered for VAT, both voluntary and required, get a tax registration number (TRN) to make dealings with other businesses easier.

How Can You Apply For VAT Registration In The United Arab Emirates?

The Federal Tax Authority in the United Arab Emirates requires enterprises with annual revenue of DH375,000 to apply for VAT registration. The tax authorities have permitted qualified tax agents to assist firms with the registration procedure to make it easier for them.

The FTA announces the registration dates, and you must complete the procedure before the deadlines. The firm will face severe fines and penalties if it fails to apply. While it is critical for companies to understand all of their requirements linked to FTA registration, it is also critical for them to understand how VAT applies to their enterprises and activities. During the registration procedure, the Federal Tax Authority has the authority to require further information from enterprises.

What Happens If Your Company Doesn’t File Its VAT Returns On Time?

A firm will be placed on probation for a year if it fails to file VAT returns on time or make payments to the Federal Tax Authority. Authorities will impose penalties if a company submits late returns or makes repeated late payments.

If your firm surpasses the obligatory VAT registration level, you must immediately notify the tax office. Failure to do so within thirty days after crossing the threshold raises the company’s chances of being fined for failure to register. It is essential to seek the assistance of vat registration professionals to expedite the VAT registration procedure and ensure that the firm is not penalized. Do you have a trusted regulated tax expert in the UAE who can assist you with VAT-related processes? We recommend that you contact us at Earningo UAE right away. Having us as your tax counselor will provide you with the following benefits:

  • You save money and time for your company; you don’t have to pull out records or file VAT returns since our team can handle it.
  • Our professionals can assist you when your company is subjected to an audit.

Get in touch with our team at Earningo for VAT registration in UAE today!

Benefits of Working and Living in Dubai and UAE

Apart from the scrumptious food, scenic beauty, and rich cultural heritage, what makes Dubai and the UAE the most sort locations for immigrants from across the globe? It’s the flexible, convenient, and growth-oriented work-life that adds further charm for the expatriates. The cities are constantly enveloping changes to facilitate its global workforce and invite fresh talent from around the world.

Ask any tax agent Dubai and the most promising factor that allures job seekers to opt for the city is their tax exemption policy on personal income. Following is a list of some other latest improvements in favor of working executives that deserve all the eyeballs.

1. The Latest PwC Consultancy Report – Higher Take-home Salaries for Executives

One of the recent pieces of information published by the Dubai Media Office, reports some crucial statistics cited by the PwC Consultancy (Price Waterhouse Coopers). As per a survey conducted across highly-paid resident executives from different countries, Dubai stands top in offering 100% take-home salaries followed by Honk Kong and Singapore. The city tops in providing commendable incentives and other benefits for its massive workforce, which serves as a major attraction for prospective candidates.

2. Strong Economy – Rebounded Rapidly

At the onset of the pandemic, Dubai’s economy was feared to fall steeply. Estimations specified that the recruiting industry in the city would experience a major downfall due to the declining opportunities in the banking sector, dip in oil prices, and changes in the working of tax consultants Dubai. However, the worst scenarios haven’t popped up and the economy seems to have been regaining normalcy at a rapid pace. The IMF (International Monetary Funds) reports a 3% plus growth which is a plus point.

3. No Tax on Personal Income

Dubai expats are exempted from paying taxes on their personal income for the past 18 months. The same rule applies for VAT as well. Despite the ongoing transformations in the taxing sector, which are better served and understood by the tax agents Dubai, the city stands firm in the tax-free offerings for talented job-holders.

Moreover, experts believe in possible changes along the long-term incentives in varied industries, similar to that of the Western World. And, these perks are expected to improvise the take-home salaries even further.

4. Emerging Jobs in Varied Industries

Unlike the expected drop in vacancies and job postings, it was quite surprising to see new opportunities pop up during the pandemic. Promising improvement was observed in banking, energy, and non-oil industries. For instance, the banking sector transitioned physical postings to online offerings to meet the growing online banking requirements. Moreover, the energy industry shifted its focus towards renewable or green energy which also brought about immense opportunities at varied job levels.

Businesses, excluding the oil industry reported gradual increase in sales after the pandemic hit terribly. Exports still need to recover, but local sales have seen a boost which produces new work offers for many.

It is Worth Working in the Middle East!

Dubai and the UAE are prepping tremendously to not lose global talent to competitors. Constant advancements in favor of the working executives are being implemented to keep attracting worldwide job-holders. The welcoming policies and convenient work-life balance make it worth the effort to spend your working years in the Middle East.

Advantages and Challenges of Setting Up Mainland and Freezone Company in the UAE

The UAE brings in a lot of benefits for investors of all scales and mediums. The city is bound to create a growth-oriented business culture to foster organizations in all sectors. From having the best tax consultants Dubai, who guide through the city’s taxation rules to maintaining strong frameworks for proper business functioning, the UAE makes an ideal space for companies to exist and prosper.

If you are along the lines to invest in setting up an organization in the UAE, it is obvious to feel dubious and challenged. Nevertheless, the Emirate is a great place to start with. However, the primary concern here could be deciding between a Mainland or Freezone company. The decision depends on a plethora of factors that surround the company type, its client base (whether in UAE or abroad), the ins and outs of business activities (within the city or outside), etc.

Following are a couple of challenges and advantages of Mainland and Freezone Companies to ease the choice for you.

Pros and Cons of a Mainland Company

Signing up as a Mainland Company implies that you can have an onshore organizational set up in the mainland UAE. Foreigners, in this case, can penetrate the market by opting for LLCs or establishing a branch office of a foreign store. This approach of investing in a company can have potential advantages and quite a lot of difficulties too. So, here’s the gist of it:

  1. Restriction-free trade opportunities both within and outside the UAE as long as the setup is onshore and established in the Emirate where the company was licensed.
  2. Financial auditing is obligatory for Mainland Companies. A well-versed tax agent Dubai can solve the complications here.
  3. Minimum office space of around 140 sq. ft. is mandatory to establish a Mainland company. The area further depends on the number of visa holders in the organization.
  4. Workers are eligible for visas without restrictions but the number of people your company holds depends on the office space you acquire.
  5. With effect from July 2021, foreign owners of a Mainland company are allowed to take 100% ownership. Before this, foreigners would have to have a 51% partnership with local sponsors to register in the mainland.
  6. Around 1000 foreign business listings are now offered 100% ownership but there are still some limitations for certain organization types.

Pros and Cons of Freezone Company

The very first Freezone in the UAE started in the 1980s. As much as the name implies, these areas allow complete ownership for foreign companies and operate under separate jurisdictions within the specific Emirates. At present, there are 45 Freezones in the UAE namely, Dubai Multi Commodities Centre, Dubai Healthcare City, Dubai Internet City, JAFZA, DIFC, ADGM, etc.

  1. As a foreign company, you have 100% ownership and do not have to involve any local sponsor.
  2. These companies can trade only within other Freezones of the same jurisdiction or outside the local UAE market.
  3. Since such setups are governed by special regulatory bodies called the ‘Freezone Authority’, they are exempted from all forms of taxes for 50 years.
  4. Financial auditing is not mandatory in all cases but top tax consultants Dubai highly recommend getting it done.
  5. Freezones do not have any limitations in terms of office space but impose restrictions on the number of visas. Usually, virtually incorporated offices are allowed one to six visas. For physical stores, it depends on the office space taken.

Takeaway

It all boils down to the requirements of your company’s establishment. If penetrating the local markets is the goal, then Mainland organizations are compatible. Whereas, if quick setup, freedom to complete ownership, and tax exemption are the target, then Freezones are ideal. Do a reality check, assess your goals, and move accordingly.

 

Ways to Amend your VAT Registration in UAE

The newly introduced VAT system in Dubai, UAE, makes it essential for qualified and experienced tax professionals and consultants to support your business. We, at Earningo’s VAT Registration Dubai, UAE are here to lend you a helping hand, with our team of highly experienced and FTA verified consultants for taxes and audits who can work with you as your tax advisers.

Who requires VAT Registration Dubai, UAE?

Every business based in any Emirate in the UAE and whose taxable imports plus supplies are more than or are expected to exceed AED 375,000 in a financial year must mandatorily register for VAT. An optional provision is given for businesses whose supplies and imports exceed AED 187,500 per annum for VAT registration Dubai, UAE.

Why do you need us?

Serious penalties are imposed on those who do not comply with VAT regulations. The penalties are as follows:

  • AED 20,000/- Failure to submit VAT Registration within the given time frame.
  • AED 1,000/- Failure of VAT Return Filing for the first time.
  • AED 2,000/- Failure of VAT Return Filing within the subsequent 24 months.
  • AED 15,000/- Failure to display prices without including tax.
  • AED 10,000/- Failure to maintain records for the first time.
  • AED 50,000/- Failure to maintain records subsequently.

Hence, by trusting Earningo’s VAT registration consultancy services, you can be free of such worries about the penalties imposed for not following up with tax payments.  So, complete your VAT registration Dubai, UAE with our help. Our step-by-step guides, expert advice, and follow-up services will help you ease your VAT journey!

Why Choose Us?

Our team of skilled, FTA (Federal Tax Authority)-certified experts has years of experience and is well-versed in the tax and audit laws of the UAE.  We believe in the “client-first” mindset and hence, give the utmost priority to them. Your data is in safe hands with us!

Our VAT Registration Services

As or client, you’ll benefit from the following three VAT-related services provided by us:

1.   VAT Advisory

Here, we aim to perform a detailed analysis of how VAT impacts and will impact your business. We will also provide information about FTA guidelines and updates through our VAT-based workshops and training sessions.

We will also assist you in identifying, managing, and drafting VAT action. In addition, our VAT advisory services cover invoicing under VAT guidelines along with IT mitigation.

2.   VAT Compliance

We help you to easily complete your VAT returns and successfully review your account. We also help in negotiating with tax authorities for VAT-related audits and queries, while adhering to all the rules and regulations of VAT registration Dubai, UAE.

3.  Tax Agent

We are regarded as one of the leading tax agencies in UAE and have represented nearly 200 clients for VAT handling and accounting services. We also have a 100% VAT Refund success ratio.

Our thirty-year experience in the field has helped in tackling situations and providing the best solutions to our clients, therefore ensuring a smooth VAT registration process.

Being a trusted tax agency we uphold our responsibility of being aware of every VAT-related update in the UAE, to represent your business on a positive note before the FTA.

We keep you informed about the latest VAT-related procedures, declarations, assessment proceedings, penalties, appeals, and auditing. All in all, Earningo is your one-stop solution to fulfill all your VAT responsibilities in an efficient, compliant, systematic, and timely manner.

Contact Us Today!

So if you are looking for a consultancy to complete your VAT Registration, Dubai, UAE, call us now to enquire about our reasonable charges and exemplary services!

How to Secure Tourist VAT Refunds on your Purchases in UAE?

The UAE is a shopper’s paradise with its luxury outlets, glitzy malls, and gold souqs and luxury outlets. It offers the best brands from around the world, and tourists can take advantage of the shopping opportunities when they visit the country.

The UAE government’s decision to refund Value Added Tax (VAT) paid by tourists on their purchases is excellent news for the travel, tourism, and retail sectors. Keeping with the global practice of exempting tourist purchases from VAT, the Federal Tax Authority (FTA) implemented the VAT refund scheme for tourists starting November 18, 2018, after introducing VAT on January 1, 2018, in the UAE.

Steps to get a VAT refund for tourists in the UAE

The Federal Tax Authority (FTA) has announced that eligible tourists can request refunds of VAT incurred on their purchases in the UAE. Anybody who is not a resident of the UAE, including the GCC nationals, is eligible for Tax-Free shopping under the current rules.

Here are a few primary conditions and steps to get your VAT refund:

  • The goods purchased by tourists need to be supplied within the UAE border.
  • The tourist must leave the country within 90 days from the date of supply, along with the purchased supplies.
  • The goods must be exported out of the UAE by the tourist within three months from the date of supply.
  • The claim for a refund must be made within 90 days of purchase.
  • The tourist must have purchased the goods from a registered retailer in the system.
  • The minimum spending for VAT refund by the tourist is 250 Dirhams.
  • The maximum limit for a cash refund is 7,000 Dirhams.
  • The tourists will receive 85% of the total VAT amount paid in the refund, minus an administration fee of 4.8 Dirhams per tax-free form.

Eligibility

Any retailer who follows the authority’s specific criteria can participate in the scheme. The FTA has issued decision No. (1) specifying the requirements for retailers for participating in the Tourist VAT Refund Scheme.

How can you claim a VAT refund on your purchases as a tourist?

Follow the below steps to claim a VAT refund on your purchases as a tourist:

  • Determine the conditions to fulfill: As a tourist, you must follow the primary requirements and steps given above in the article to get your VAT refund.
  • Check the designated places for VAT refund: A tourist can avail the VAT refund on the tax paid for their shopping from various outlets and point of sales registered under the Tax Refund Scheme for tourists through an electronic system. It determines the taxes eligible for a refund and shall be paid accordingly.
  • Don’t forget to get the tax-free tag: Once you have finished shopping as a tourist, a tax-free tag will be attached to your payment receipt. The tax-free tag is crucial as it allows the tourist to avail the refund scheme with a minimum purchase of AED 250. Remember, the tax-free tag is only valid for 90-days from the date of purchase.
  • Validate your eligibility for VAT refund as a tourist: It is a mandatory process to avail the tourist refund scheme. The tourist has to provide the passport and boarding pass, and additional checks, if necessary, will be carried out to ensure your purchase.
  • Pick a method of refund: There are two types of refunds in which you can avail tourist refund scheme, i.e., by cash or credit.

Vat Refund for tourists in UAE

The new amendment for VAT refund for tourists is fully electronic with minimal human intervention. It has led to an excellent customer experience for retailers and the FTA. The VAT refund scheme has various conditions and procedures for the retailers, the scheme operators, and the tourists. The refund scheme is an attractive scheme for tourists visiting UAE. It has been implemented to incentivize tourists to shop in UAE. It is outlined that tourists will be able to collect a refund of VAT at the time of departure from the airport.

As a tourist, it would be beneficial to have proper knowledge regarding the VAT refund scheme before visiting UAE. Contact the experts for the latest clarifications and judgments regarding the scheme.