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.

Know the Myth And Realities Behind Obtaining A UAE Tax Residence Certificate

Many confusions have transpired around the views and the norms of application for the UAE Tax Residency Certificate. Numerous misinterpretations surround the rules of application for the certificate. Here is a clear picture of applying for the UAE Tax Residence Certificate.

What is a Tax Residence Certificate?

The Tax Residence Certificate (TRC) is a technical document issued by the UAE Ministry of Finance for verifying the applicant’s formal status as a resident of the UAE concerning the Double Taxation Avoidance Agreements (DTAA) between the UAE and specific foreign jurisdiction. Once the DTAA is signed between the two countries, it mandates tax authority to produce a Tax Residence Certificate.

What is a Tax Residence Certificate used for?

A Tax Residence Certificate is an essential and core document that helps the applicant seek the benefits of DTAA.

Can an Individual obtain a TRC, and what requirements are to be fulfilled?

Yes, the individuals can apply for the UAE Tax Residence Certificate but, they are subject to meet the prerequisite conditions applicable.

Here are the conditions to be met by the individuals to obtain the certificate. They have to submit the copies of:

  • Passport and valid permit of residence
  • Emirates ID card
  • Residential lease agreement
  • Validated six months bank statement from a local bank
  • A valid proof of income in UAE, i.e., Salary certificate
  • An immigration report from the GDRFA – exit and entry report stating that he/she stayed in the country for more than 180 days
  • Tax forms from the country where the certificate needs to be submitted

Can a company apply for a TRC, and what requirements are to be fulfilled by the corporate entity?

Of course, yes, a corporate entity or company can apply for the UAE Tax Residence Certificate by fulfilling certain conditions. The companies have to submit the copies of:

  • Trade licence and partners’ attachment
  • Establishment contract certified by the official authorities
  • Company owners/ partners/ directors’ passports, IDs and permits of residence
  • Certified audited financial accounts of the previous year
  • Validated six months bank statement from a local bank
  • Certified lease agreement or MOA of the company
  • The organizational structure of the company

Is a UAE offshore company entitled to obtain a Tax Residence Certificate?

No. The Ministry of Finance does not issue Tax Residence Certificates for offshore companies as the latter are considered non-resident corporate entities for tax purposes.

How much time will it take to process the application?

The process of obtaining the Tax Residence Certificate in the case of an individual will take about 3-10 days and for corporate entity or companies, it will take not less than 12 working days depending on the approval from the authority.

What is the procedure to apply online for the UAE Tax Residency Certificate?

The applicant should create an online account on the Ministry of Finance (MoF) portal. A tax residence certificate application form is filled out and uploaded alongside the supporting documents for review and approval by the MoF. Once the MoF issues the license, fees are paid electronically, and the certificate is generated and available for collection in person at the Ministry or couriered to a domestic address. The whole process takes about 3-10 days for an individual and not less than 12 working days for companies depending on the approval from the authority.

Misconceptions surrounding the UAE Tax Residence Certificate

Myth #1: An individual must stay in UAE for 180 consecutive days to meet the Ministry of Finance requirements.

It is partially true. The MoF has fixed a prerequisite for an individual applicant to have spent at least 180 days in the UAE within the year preceding the applications for the certificate. This is an objective criterion (day-counting). It is, however, possible to apply or reapply even if this condition is not met by the applicant if they prove to have strong ties to the jurisdiction.

Myth #2: There is no need for a residential address in the UAE

A residential address in the UAE and a valid tenancy contract in the applicant’s name are mandatory conditions to apply for the UAE Tax Residence Certificate.

Myth #3: An applicant can submit international bank account statements as part of their application

The Ministry of Finance will not accept any foreign bank statements. The applicant must have a UAE personal bank account and have held such an account for a minimum of six months. They also require six-monthly statements stamped by the UAE bank. The online generated bank statements are not acceptable.

Myth #4: The Tax Residence Certificate cannot be predated

An individual or a company can acquire backdated Tax Residency Certificates. The Ministry of Finance allows applicants to backdate their Tax Residence Certificate application as long as there is documented proof that the applicant has had a UAE resident visa, six months UAE bank statements, and a residential address for that period.

Expo 2021 Dubai Attendees Should Use VAT Refund Scheme

Dubai Expo 2021 is one of the biggest events in the post-pandemic world. After being postponed from the last year, the organizers have retained the 2020 branding for marketing purposes. Hence, it is Dubai Expo 2020 and 2021 also. It has started in October 2021 and is scheduled till March 2022. It’s the first-ever Expo in the MEASA region, covering the Middle East and Africa, and people from across the globe are taking part in the event. The event covers over 1083 acres or 438 hectares between Abu Dhabi and Dubai.

In an official statement, the Federal Tax Authority (FTA) has called the attendees to benefit from the Value Added Tax (VAT) refund scheme for taxes paid on goods and services connected with Expo 2021. It has been implemented by the authority in line with UAE Cabinet Decision No.1/2020. The authority added they had issued a comprehensive guide for the official attendees at the Expo.

“The FTA has been cooperating with all relevant authorities to prepare for a smooth and efficient implementation of the procedures for the refund of Value Added Tax paid on goods and services connected with Expo 2021 Dubai,” explained H.E. Khalid Ali Al-Bustani, Director-General of the FTA. He further added, “The FTA has established a daily direct communication channel with the Expo 2021 Bureau of International Participants to enhance coordination and ensure fast processing of applications from participants in Expo 2021 Dubai, whether in regard to VAT registration requests by the participating countries, or processing of refund requests, as well as promptly responding to their enquiries.”

Categories of taxes come under the VAT refund scheme

Here’s what we have received from our tax consultant Dubai. The authority has mentioned the categories of taxes that can be refunded under the VAT refund scheme in their guide. They are:

  • The official participants on goods and services related to construction, installation, alteration, decoration, and dismantling of the exhibition space.
  • The official participants on goods and services related to organizing works and activities and the official participant’s exhibition space operation. Also, the participants are responsible for any presentations and events taking place on the site.
  • The official participants on goods and services related to the actual operations of the official participant provided the value of each product or service claimed is not less than 200 AED.
  • The official participant in connection with all operations, services, and activities provided for the participation in the Expo, whether located in or outside the boundaries of the Expo site.
  • The VAT is incurred on importing goods for the personal use of the official participant’s section commissioner-general, section staff, and the beneficiaries.

The guide also clarifies that the official participant must possess a certificate of entitlement issued by Expo 2021 Dubai, established by virtue of Dubai Decree No. 30/2014. Suppose the participant wants to qualify for VAT refunds for expenses under the first or second category. However, it is not applicable for third, fourth, or fifth category participants. They don’t need to obtain a certificate of entitlement to apply for a VAT refund.

It clarifies the procedures in refund mechanism and VAT reclaimable, and the special case for imports certificate of entitlement. It provides more details about the eligibility criteria for the certificate of entitlement, applying procedures, request form, and supporting documents. It also explains the procedures to apply for refunds, procedures for the offices of Official Participants registered and not registered for VAT, and the supporting documents for the refund request. Finally, it reveals the processing of the refund application by the organizers and the frequency of the refund application and the payment of the tax on the sale of imported goods.

The tax consultant Dubai reminds the guide is available on the FTA website – www.tax.gov.ae – which clarifies the refund mechanism, the VAT reclaimable, and all the doubts related to Expo 2021 Dubai.

Tax Refund Criteria

Cabinet Decision No. 1/2020 on the Refund of VAT paid on goods and services connected with Expo 2021 Dubai includes nine articles, presents the eligibility criteria for tax refunds where VAT incurred on the import or supply of goods or services is associated with the Expo. It also identifies all procedures related to applying for a refund, the requirements, the certificate of entitlement and clarifies the FTA’s jurisdiction in relation to the Expo.

Global Tax Deal to Hurt Indians Who Moved Trust to the UAE

It is not new that the rich Indians have created and registered their family trusts in tax-friendly nations. As per the tax agents in UAE, they transferred their assets, including shares held in India and money repatriated from India, to the countries such as UAE, Singapore, and Malta to insulate themselves from the taxman status and other government agencies. Earlier, countries such as Ireland and Switzerland were the favorite locations of rich Indians to create family trust structures. Family trusts are being created in the USA and Africa also.

According to an Economic Times report, these rich Indians feared that they might get harassed by the government agencies in case of any load default in the future. Hence, to avoid the troubles, they shift their resources and properties to family trusts and holding entities abroad. They believed that it would make it difficult for the Indian authorities to access the assets held outside of their home country. However, following the new global tax deal of the Organization for Economic Co-operation and Development (OECD) and UAE’s plans to introduce more taxes, several rich Indians are contacting their advisers, fearing additional taxes.

Many wealthy Indians, including businessmen, Bollywood celebrities, and politicians, had created or have invested in companies based in tax-friendly countries like UAE. They were handling the operations from India and availing tax benefits due to UAE’s liberal tax regime. After all the leading countries, including the UAE, signed OECD’s global tax deal, the government might introduce a corporate tax of at least 15% across the board that applies to the income of holding trusts and entities. Hence, there’s a fear of getting stuck with tax and other regulatory issues, comments a tax agency in Dubai.

The founder of tax advisory firm Transaction Square, Girish Vanvari, said, “Many Indian families had moved their holding companies and trusts to Dubai in the last two years either completely or partially. Now with the OECD global tax deal, the fear is that there could be a 15% tax in the UAE even on these entities that would eventually wipe out a large part of the tax arbitrage.”

Until recently, countries like the UAE were the preferred location to set up family trusts or holding entities as no income taxes or other direct taxes were incurred. But, OECD, in a deal with 136 countries, made sure that large multinationals pay a minimum tax of 15% on their global income from 2023, and those with profit above a threshold pay taxes in the markets where they conduct business. The tax experts say that, though the OECD deal is only applicable to 100 multinationals as of now with a particular size, it will create tax complications for the companies present in the countries like UAE.

“This is mainly because countries which have low or no corporate tax may be increasing or introducing corporate tax at 15% across the board at some point in next one or two years and that will then also impact the trusts or holding entities in these countries,” said Ajay Rotti, partner at tax advisory firm Dhruva Advisors.

People who have advised their clients on tax, VAT registration in UAE, and other regulatory issues opined that in the future, these companies would end up holding global operations, including the Indian business, by restructuring their holding entities. Apart from family trusts, operational entities might also be restructured.

The partner at UAE-based tax advisory firm WTS Dhruva Consultants, Nimish Goel, said, “With a likely introduction of corporate tax in countries like the UAE and Bahrain, large business houses are already looking at their business structures and have started assessing the impact. The tax landscape in the region is now at an interesting and evolving crossroad.”

The OECD deal targets large corporate companies such as Google, Facebook, Apple, and Amazon for creating complex structures in tax havens, including Ireland, the British Virgin Islands, Bermuda, the Cayman Islands, and Mauritius. Government authorities want these large enterprises to shell out at least 15% tax on their global profits irrespective of the complex structures.

Role of Tax Consultants and Benefits of Hiring them in Organizations

The tax consultants Dubai give advice, to prepare, and assist individuals or companies in tax filing or returns. They are tax preparers and suggest steps which would help companies save more money. As tax consultants, they are experts on matters related to tax and financial experts familiar with all the tax laws in Dubai. Since companies and individuals pay high taxes to the government, they need tax consultants to minimize their tax exposure by using effective tax management strategies.

The tax consultants Dubai is expected to fulfil certain responsibilities. It is to keep their client’s tax to the minimum, keep track of the latest schemes provided by banks, and organizations, and provide suggestions conferring to the financial ability of the clients. It’s a great responsibility to suggest and provide the necessary information to ensure their clients are following all the legalities. Additionally, they need to act transparently.

During the preparation and submission of documents to the Federal Tax Authority (FTA) in Dubai, tax consultants assist on the best practice. They possess very good knowledge regarding environmental factors such as the change in tax rules and change in government guidelines that might affect the client or the client’s business.

Let us look at the major roles of tax consultants in organizations

  • Preparing the monthly and yearly tax returns and other compliance documents
  • Recording maintenance and documentation of files
  • Following the developments of frequent updates on tax laws, regulations and practice
  • Conducting research on tax and customs related issues exclusively on behalf of organization and their clients
  • Communicating with the Federal Tax Authority and customs officials
  • Active participation in knowledge management, professional development, and firm’s administrative activities whenever required
  • Long-term tax optimization and budget planning

Benefits of hiring tax consultants Dubai

  • The tax consultants Dubai are professional consultants who give flawless expert guidance and services
  • With their exhaustive training, they communicate easily with the clients and lead the company on the correct path
  • A well-experienced tax consultant is well versed on government policies and other compliance rules that helps to deal with the tax issues
  • Knowledgeable in the optimised usage of available resources of the organization in an effective way without breaking any laws
  • The tax consultants are well updated with the changes in rules and regulations made by the FTA
  • They provide accurate and professional legal advice to their clients and their business
  • With the experts on their side, clients can be relieved from the stress about tax and tax-paying processes
  • The experts’ objective is to save the money for the client with a smooth navigation through the tax process
  • They ensure to prevent error and misconduct in transactions

The tax consultants Dubai ensures the integrity of financial and accounting information, promote accountability, and prevent fraud. They ascertain the procedures are set up properly to manage the process without errors. Since UAE follows international accounting standards, the tax consultants play a vital role in running business through proper control of finance. The SME sector in the UAE is growing rapidly and hence the knowledge, monitoring, studying the changes in the business sector, and implementing the necessary changes is of high-priority in the organization.

How to Obtain Tax Residency Certificate or Tax Domicile Certificate in the UAE

A few decades ago, UAE was completely reliant on oil revenue but, its transformation into a country that attracts investment from across the world is an inspiration and unimaginable. The Emirates of Dubai and Abu Dhabi, in particular, have become the centre of international finance, embracing the latest technology innovations. The UAE has also developed many attractive tourist attractions with renowned landmarks and high-class hotels.

Many factors contribute to the nation’s overall development. The favourable tax environment in the UAE is one of the major incentives that is attracting businesses. Many companies which base themselves in the UAE are exempt from income tax. Also, in order to avoid the imposition of taxes in two countries on the same taxpayer, they have established double taxation agreements with numerous trade partners. It encourages the free flow of trade and investment from other countries and protects the member countries from double taxation on the exchange of goods and services.

The companies or individuals are advised to apply for a Tax Domicile Certificate (TDC), also known as a Tax Residency Certificate (TRC), to get the benefits from the double taxation agreement in the UAE.

What is a Tax Residency Certificate?

A Tax Residency Certificate is an official document that used to be issued by the UAE Ministry of Finance (MoF) till 11 November 2020. But, according to the resolution taken by the cabinet on 14 November 2020, it shall be issued by the Federal Tax Authorities (FTA) on an application made by the resident (individual or incorporated entity) of UAE.

A Tax Residency Certificate in the UAE is beneficial:

  • For Double Tax Avoidance Agreements (DTAA)
  • To prove that you’re a tax resident of the UAE, and
  • It’s a means of registration with the authorities

Eligibility criteria to get a Tax Domicile Certificate

Any company operating on the mainland or in a free zone in the country for at least a year is eligible to apply for a Tax Residency Certificate. Offshore companies may apply for a tax exemption certificate as they don’t have a physical presence in the UAE and are ineligible for TRC.

The Tax Residency Certificate is also available for individuals who have resided in the UAE for at least 180 days and wish to establish tax residency in the country. It mainly benefits those individuals whose native countries do not have a double taxation agreement with the UAE. The individuals who wish to apply must have a valid resident visa for more than 180 days.

Requirements to obtain the Tax Residency Certificate

For individuals

  • Passport copy and valid resident visa copy of at least 180 days
  • Emirates ID copy
  • Attested personal UAE bank statement of 6 months
  • Proof of income in UAE – Ex., employment agreement, salary certificate
  • Report from the General Directorate of Residency and Foreign Affairs (GDRFA), showing evidence of all entries from the UAE
  • A copy of the certified tenancy contract, valid for at least 3-months before the application

For companies

  • Valid UAE Trade License – Mainland DED or Freezone – the company must have been active for at least one year
  • A copy of MOA (Memorandum of Association) for the company
  • A copy of the Certificate of Incumbency for the company – Chamber of commerce certificate
  • The Organizational chart structure of the company
  • Certified commercial tenancy contract copy – valid for at least 3-months before application, physical office space is mandatory (virtual office space will not be sufficient)
  • Passport, valid UAE resident visa copy and Emirates ID of the company directors
  • Latest certified audited financial statement or UAE company bank statements from the last 6-months, attested by the bank authority

Benefits of obtaining a Tax Residency Certificate

The Tax Residency Certificate or Tax Domicile Certificate is an undisputed document proving that you’re a resident of the TRC issuing country. Since it is issued by the Statutory Authority, i.e., Federal Tax Authority in the UAE, it’s a reliable document to substantiate your residency.

For companies, the TRC provides freedom to justify the applicability of provisions of DTAAs. The provisions of DTAA also benefits companies in restructuring their business or transactions, or they can consider tax planning. Favourable conditions of Withholding Tax and Permanent Establishment provide ample opportunity for the businesses to plan tax-efficient structures.

Since the UAE government and the Statutory Authorities is on the verge of promoting their development goals, they have concluded 115 DTAA with most of its trade partners. Hence, if the applicant is confident with his/their residency status, there are abundant opportunities to get the maximum benefit from UAE tax residency.

How to Create a Strong Internal Audit Structure for Your Business?

With so much global uncertainty, change seems to be the only true constant. Having a strong internal audit department can help business leaders make better decisions for future growth and success. Hence, it is vital to employ a robust internal audit structure in the company. The internal factors can include the functioning of different departments, processes, the well-being of the staff, robust payroll system etc. In addition, an internal audit can ensure that the systems put in place are efficient and serve the company management’s intended goals.

The employees carry out internal audits to gauge overall risks to security and compliance to identify if the company is following internal guidelines. Management teams can use the reports generated from internal audits to identify areas that require improvement. Internal audits measure company objectives against output and strategic risks.

A robust internal audit structure in a company will ensure an organization is competition ready in the industry. Following are some of the best audit practices.

Risk assessment and business strategy

The audit team should understand the business strategy and assist the management by identifying and prioritizing the areas or processes that require attention and audit focus. The team should study all the previous audit reports and findings, and draft a risk assessment report. It should address all the pain points and report any results to enable the organization to:

  • Prioritize audit projects according to the level of potential risk
  • Determine the direct relation to the level of the risk
  • Plan for performing internal audit projects in risk areas to minimize the risk of loss
  • Use time in an effective and efficient manner

Training the internal audit team

The internal audit team should be trained to conduct an effective audit program and meet required audit standards. It is vital to gain an understanding of the existing processes and procedures utilized in the processing of high volumes of claims data. The training by adopting the modern technologies with specific checklists provides a higher value-added opportunity for the company to ensure sound management systems.

Reporting structure of the company

The transparency in the company’s reporting structure would assist the internal audit team to observe and provide recommendations with respect to auditing guidelines in Dubai and to improve processes and controls. Any discrepancies in the reporting process will negatively affect the communication and working of the internal audit team.

Adopting data analytics on the internal audit process

An effective audit can be performed by adopting data analytics on the internal audit process. It provides enormous amounts of clean, structured data and provide necessary insights for the internal audit team. It further enables the auditors to extract the required information, identity, analyse patterns, and detect any discrepancies in the system.

Benefits of internal audit

Having understood the audit best practices and management’s responsibility for internal controls, let’s concentrate on the benefits of internal audit

  • The scope of the internal audit is defined by management or the Board but, not an outside agency
  • Internal audit “reports” directly to management or the Board
  • Improves the “control environment” of the organization
  • Makes the organization process-dependent rather than person-dependent
  • Identifies redundancies in operational and control procedures and recommends to improve the efficiency and effectiveness of procedures
  • Serves as an “Early Warning System” by identifying the deficiencies and make amendments prior to regulatory or compliance audits
  • Ultimately, it increases the accountability within the organization

Takeaway

Having an internal audit team would assist the management with the company’s risk assessment process and ensures that the responsibility for maintaining a system of internal controls has been fulfilled.

How Can Business Owners Benefit from the Tax Agent Services in UAE?

Tax is a confusing term for many business owners. Hence, according to a study, most business owners who file the tax returns choose to use an accountant or tax agent services UAE. It is also noted that many companies would like to appoint tax representatives for increased accuracy, low stress, and maximum refunds. Tax agents are preferred as they are professionals and communicate better with the tax authorities to ensure the tax returns are technically correct.

What is tax agent services UAE?

Tax is an evolving field due to the advancements in technology, and the new clarifications will become an everlasting process. Since tax agents are trained experts in the field, they are better positioned to advise business owners about the tax.

Tax agent services UAE is a professional firm or any person registered with the Federal Tax Authority (FTA) in the register of tax agents. A tax agent is a person or an agency appointed to represent another person before the FTA and fulfil his tax obligations and the associated tax rights.

Following are the reasons on how business owners can benefit from the tax agent services UAE:

1. Avoid stress by appointing a tax agent

Agree that knowing to file your returns all by yourself is a good thing. But note that you are liable for the unintentional minor errors. You may have to deal with the FTA if they come knocking and pay hefty fines, penalties or interest that creates stress. But what if you have professional tax agents by your side? Half of your tension comes down with the presence of tax agent services UAE and makes it easier for you to focus on your business. A qualified tax representative ensures your tax returns are accurate and compliant with tax laws.

2. Communicates well with FTA

The common reason that an average person face is getting confused to answer correctly with FTA. They are:

  1. Communication barriers while talking to the tax authority
  2. Unable to clear the doubts in a call to tax helpline
  3. Confusion in getting a fine waived off or couldn’t understand the reason for a fine
  4. No clarity on tax laws
  5. Doubts in getting information on tax refund claims
  6. Answering queries received from tax authorities

3. Saves time

Though it seems that preparing tax returns yourself is a secured method, filing wrong returns can bring more danger than you expect. It isn’t easy to get clarity on exempted income, claimable expenses, and many other things which keeps changing. So, spending a few hours with your tax representative ensures filing tax returns with zero errors and saves a lot of your time.

4. Meeting deadlines

Many individuals tend to keep the tax filing to the last moment. But when it is due, they forget, don’t get time to return filing or some other reason. Also, they miss out on keeping track of deadlines and delays the returns filing that leads to penalties. But a tax agent always ensures deadlines are met without delays and updated with tax notifications issued by the tax authorities.

5. Speak in the language of law

Sometimes, a normal person finds it difficult to explain the issues to tax authorities and understand what they are saying. It is because a normal person can’t get a reference from the tax laws. However, a tax agent can communicate in the language of law with the authorities, and both can understand their viewpoints in a better manner.

Verdict

Whether you have to file corporate tax or have queries regarding tax laws, hiring tax agent services UAE is a better option to avoid the possible uncertainties.

Tax Consultants Dubai- Advantages of Hiring Them

Filing taxes is definitely not an easy job. There are various complicated processes involved and business owners have to deal with huge calculations. Moreover, the tax filing rules and regulations changed over time. Hence, it is a good idea to hire professional tax consultants who can help you without making major errors.

Clarifications on tax deductions

Tax consultants are professional and can easily identify the potential tax deductions that you have to face every year. Besides, they even advise on opting for strategic investments as well as avoiding major tax liabilities in the future. Due to this reason, it is always a good idea to hire tax consultants Dubai.

An efficient tax consultant provides you with good advice along with effective methods so that you can save on your taxes. Moreover, using their guidance, you will be able to save huge on taxes, that too in a more legitimate manner. Also, you will be able to improvise the financial portfolio.

For example, hiring a tax consultant will help in identifying tax deductions and guide you so that you can save a significant amount when filing tax returns.

Help in saving time

One of the biggest problems that most people face is filing by the end of a financial year. As a result, we often end up making investment decisions quickly. After all, it takes a lot of time as well as effort to ensure that the tax return that you filed is correct.

Hiring a tax consultants Dubai with his professionalism will dig up the financial portfolio you hold, carefully check the income history along with your savings. It is an essential step before you are filing for income tax returns.

Since they will do all the legwork, you will be able to do other essential works that are necessary to perform before tax filing.

Avoid mistakes in the tax filing

The entire process of tax filing is quite hectic and time-consuming. As a result, it is common to face stress and if you don’t understand the process of the tax filing, you will automatically end up making mistakes. Let us not ignore the fact that making mistakes in tax filing can eventually force you to pay hefty fines.

Revenue services evaluate the tax return to check if there are any inaccuracies in different ways. Due to this reason, it is always a good idea to hire tax consultants Dubai as they have a professional way of understanding various tax laws.

Proper financial planning

Financial planning plays a vital role when it comes to tax planning and a tax consultant can plan everything. For example, whether you want to invest in a four-wheeler or a house, with proper expenditure as guided by the tax consultants, you will be able to save a lot of money. Moreover, you will be able to maintain the tax liabilities as well. Hence, if you are someone who wants to plan your tax expenditure, make sure to hire tax consultants Dubai.

With This Easy Method, You Can Register for VAT In the UAE Quickly

VAT stands for value-added tax. It is a tax levied based on their consumption rather than their income. It is imposed on the price of a product or service at each production stage, distribution, or sale to the end consumer.

Value-added tax, or VAT in the UAE, commenced on the 1st of January, 2018. The regulation was started as a means to provide the UAE with a new source of income which will be continued to be utilised to provide high-quality public services.

Benefits of VAT Registration in UAE:

  1. Since VAT is levied on the consumption of goods and services, it ensures that the government is at the receiving end of a stable revenue generation mechanism.
  2. VAT in the UAE aims to simplify the tax collection system by making the taxes levied less complicated and repetitive.
  3. It promotes savings among consumers.
  4. VAT registration in the UAE proposed complete digitalization and computerization of the tax collection system.
  5. VAT is collected in small instalments, so the consumers have minimal burden.

Who can register for VAT in UAE?

  1. Mandatory VAT registration in UAE for businesses whose annual turnover is more than AED 375,000.
  2. Voluntary VAT registration in UAE for businesses whose annual turnover is between AED 187,500 & AED 375,000.
  3. Startups whose VAT attracted expenses are more than AED 187,500.

Step-by-step Guide For VAT Registration in UAE

1 Step: create an account on the digital portal of the Federal Tax Authority, UAE.

2 Step: upon registering for an account, commence the procedure as guided by the website. For this, you may need to prepare a few new documents in advance.

  1. Copy of Trade License
  2. Passport copy (Owner/partners)
  3. Emirates ID (Owner/partners)
  4. Memorandum of Association (MOA)
  5. Company’s Bank Account details and IBAN
  6. Details Business Turnover for the last 12 months (Balance Sheet, Audited Reports or Bank Statements)
  7. Customs Authority Registration code
  8. Company’s registered address and P.O. Box.
  9. Projected revenues and expenses for the next 30.
  10. Details of Business Activities. (Import/Export or Trading).
  11. Names of GCC countries if doing business in them.
  12. Name of Tax Group (if they want one tax group number for all the entities).

3 Step: once you submit all relevant details and documents successfully, you will receive a Tax Registration Number (TRN) upon approval by the FTA.

Voila! You’re done!

However, if this procedure seems complicated and tedious, we have the perfect solution for you.

Fastrack your VAT Registration UAE Process!

Earningo UAE is a professional CA firm that offers Tax Consultancy, Auditing & Accounting Services in Dubai, UAE.

With experts on board, get your VAT registration and other compliances fulfilled with utmost speed and meticulousness! We are experts to provide VAT registration in Dubai.