Bin Ghannam Accounting & Auditing
Integrity, Objectivity, Independance
Taxation Services
Taxation Services are a necessary part of running your business successfully. At Bin Ghannam, we help you in managing your VAT and tax matters and and help you ensure that your company complies with all the necessary local tax laws.
As reliable and trustworthy consultants, Bin Ghannam Tax Experts are always there help you set up your taxation system, manage your tax obligations, and provide professional backup and guidance when you need it most. Through our customized service, we offer taxation services that are tailored to your company’s needs and provide a complete overview of the current tax laws for your business.
Appointment of a Tax Agent shall be a great advantage for any business however it is not yet mandatory to appoint a Tax agent. But for sure having a tax agent can ensure the communication and dealings with Federal Tax Authority a lot easier and more efficient. In case you need the service of a Tax agent, do let us know and we shall provide you the services of a Tax Agent.
The UAE coordinates VAT implementation with other GCC countries because it is connected with them through The Economic Agreement between the GCC States and The GCC Customs Union.
Criteria for registering for VAT
- A business must register for VAT if its taxable supplies and imports exceed AED 375,000 per annum.
- It is optional for businesses whose supplies and imports exceed AED 187,500 per annum.
- A business house pays the government the tax that it collects from the customers, but at the same time, it receives a refund from the government on tax that it has paid to its suppliers.
- Foreign businesses may also recover the VAT they incur when visiting the UAE.
Tourists in the UAE also pay VAT at the point of sale.
On which businesses does VAT apply?
VAT applies equally to tax-registered businesses managed on the UAE mainland and free zones. However, if the UAE Cabinet defines a particular free zone as a ‘designated zone’, it must be treated outside the UAE for tax purposes.
At the end of each tax period, VAT-registered businesses or the ‘taxable persons’ must submit a ‘VAT return’ to Federal Tax Authority (FTA). A VAT return summarizes the value of the supplies and purchases a taxable person has made during the tax period and shows the taxable person’s VAT liability.
The liability of VAT is the difference between the output tax payable (VAT charged on supplies of goods and services) for a given tax period and the input tax (VAT incurred on purchases) recoverable for the same tax period.
Where the output tax exceeds the input tax amount, the difference must be paid to FTA. Where the input tax exceeds the output tax, a taxable person will have the excess input tax recovered; he will be entitled to set this off against subsequent payments due to FTA.
Failure to file a tax return
Failure to file a tax return within the specified timeframe will make the violator liable for fines as per the provisions of Cabinet Resolution No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE.
The Excise Tax came into effect
The Excise Tax came into effect in UAE on 1st October 2017. All the eligible businesses in UAE are to register and obtain the Excise Tax Number and apply the Excise Tax rules in the business. We can help you register your business and obtain your Excise Tax Number.
Through the Excise Tax Advisory
Through the Excise Tax Advisory, we ensure that you follow the excise tax rules are the regulations are followed as prescribed in the regulations.
International taxation is as complex as the geographical spread and with the cases of multi-jurisdictional tax liability and compliance adherence, it becomes inevitable to seek professional help. The depth, coverage, rates, and periodic changes in rules and regulations along with its application make international taxation a subject to be dealt with with experience and expertise.
We at Bin Ghannam, have experienced professionals to cater to the tax advisory requirements of our clients.
In a Tax Compliance Audit, we examine the liability of a taxable person by the Federal Tax Authority along with the adherence to the laws and regulations with respect to VAT both in the documents and of the process followed by the company. We shall ensure that the VAT is implemented and followed in principle and spirit within your business. Tax Audit shall further check whether the tax liability is paid within the due date and whether such liabilities are properly arrived as per the provisions of the relevant laws such as UAE VAT law, UAE Excise Tax law, etc.
AML- CFT refers to the Anti-Money Laundering and Combatting Financing of Terrorism (AML-CFT) Program, which is a structured system that helps organizations to prevent the financial crime of money laundering. Banks, financial institutions, and other regulated organizations must follow the AML rules and regulations, to stay AML compliant.
VAT advisory services are provided on an annual contract and our Vat experts analyze the business in detail to provide customers with the best suggestions that can create maximum efficiency and effectiveness in business. The processes can be redefined and a newer procedure can be created to synchronize with the VAT rules and regulations.
Deregistering from VAT also has certain formalities and it requires the furnishing of a certain set of documents. The same need to be done within the prescribed time as well to avoid any penalty for the non-adherence to the deregistration rules. Our expert team shall guide you and assist you in deregistering your business provided your business qualifies to be deregistered as per the Rules and Regulations on VAT in UAE.
Implementing Vat in any business does have its relevance as the business model can create a difference within the VAT era. A well-thought-out implementation of VAT in your business can make the process smooth and simple. In the VAT implementation, we shall analyze the business model, the process, and the procedures along with the internal rules and regulations along with the Accounting software and shall present a set of suggestions and recommendations which shall be implemented upon the approval of the same by the management.
VAT Registration is mandatory for companies and individuals doing business in the UAE, having an annual turnover of more than AED 375,000/-. UAE is going to implement VAT with effect from 1st January 2018. All companies/individuals coming under the above threshold limit (subject to the provisions of the relevant law) have to register for VAT.
Registration for VAT in the UAE is an online process that is accessible on the Federal Tax Authority’s online portal. Before proceeding with VAT registration, the applicant should consider various aspects such as whether to register as a voluntary option or a mandatory option, whether to register as a Tax Group or a Standalone, etc.
VAT return filing is a mandatory exercise to be fulfilled by any and every VAT registered entity and non-adherence to the same shall attract penalties as published by the FTA. The VAT return filing should be based on the business documents of the tax period and should ensure that the mandatory documentary proofs are maintained for the various adjustments and calculations that made you arrive at the figure disclosed by you in your return filing.
We have an experienced team of professionals and they can help you file your returns on time the right way.
Transfer pricing refers to the prices of goods and services that are exchanged between companies under common control. Now for example, if a subsidiary company sells goods or renders services to its holding company or its sister company, then the price charged is referred to as the transfer price. We work with our clients to understand their business and how value is created through the functions performed, assets used, and risks borne by the related parties. We assist our clients in providing transfer pricing solutions that are implementable and operational, considering the facts and concerns of our clients in local GCC subsidiaries of foreign-owned multinationals and GCC-owned groups.
Corporate tax is a form of direct tax levied on the net income or profit of corporations and other entities from their businesses. Corporate tax is also sometimes referred to as “Corporate Income Tax” or “Business Profits Tax” in other jurisdictions.
