Value-Added Tax or VAT is a tax on the consumption or use of goods and services levied at the point of sale. VAT is a form of indirect tax and is used in more than 180 countries around the world. All OECD countries except for the US have VAT (or a variation). While it feels exactly the same as a general sales tax to end-consumers, VAT is a more sophisticated tax and overcomes many challenges that affect the general sales tax. VAT is charged at each step of the 'supply chain'. End consumers generally bear the VAT cost while registered businesses collect and account for the tax, in a way acting as a tax collector on behalf of the Federal Tax Authority.
Being a professional, one must know the basics facts of VAT as it is being implementing in GCC w.e.f 1st January, 2018, Our trained and highly qualified trainers will impart knowledge of VAT so that you can comply with the VAT regulations to avoid any penalties and fines to your esteemed organization.
VAT Registration with Federal Taxation Authority(FTA) is although an easy task but it requires a lot of documentations and expertise. If you are unable to register your business for VAT to authority, our experts will make it on behalf of you for a very nominal fee. You need to provide the following documents for registration in pfd or JPEG format (Max size 2MB each);
• Scanned Copy of Trade License
• Passport Copy of the owner/partners who owns the license
• Copy of Emirates ID of the owner/partners who owns the license
• Memorandum of Association (MOA)
• Contact details of company(Complete address & PO Box number)
• Concerned person/Manager contact details
• Email of the concerned person/Manager
• Bank details including IBAN
• Owner has any other entities
• Last year income Statement/Sales report
• Expected revenue and expenses for next 30 days after VAT implementation
• Are they exporting/importing
• Customs card copy if dealing with any custom department.
• Are they doing business with any GCC country (name that country)
• Experience of Business (owners & directors involved in any previous business before for the last 5 years)
VAT implementation on your systems like
• Tally ERP System
• Sage 50ME
Preparation of Financial Statements for VAT
Now legal rules and regulations demand to maintain certain records for VAT compliance.
Companies have to maintain these documents and accounts;
• Sales account
• Purchases account
• Debit/Credit Notes
• Details of Input VAT
• Details of Output VAT
• Records of Expenses on which VAT can be claimed
• Financial statements etc