The GCC-wide introduction of Value Added Tax (VAT) from January 1st, 2018, has risen concerns among businesses in the UAE. VAT was introduced in the UAE in two phases. In first phase, companies with recorded revenue of more than AED 375,000 are mandatorily required to register for VAT. Also, within first phase, companies with revenue more than AED 18,7500 but less than AED 375,000 shall have the option to register for VAT. In second phase, all companies shall have to register for VAT. The VAT shall be collected at the rate of 5% on the goods and services at each step in the supply chain. Basic food items,education, public transport and healthcare categories shall be exempt from VAT for now.

This has impacted not only businesses with local transactions but also cross border transactions within the GCC and non-GCC countries. Since in the UAE, the taxation concept is new to most of the businesses. Thus, it is common for businesses to have difficulties/doubts as to the starting point to implement VAT.

How can Bizsol Accounting & Bookkeeping help you?

The VAT team of Bizsol will support businesses to implement the new UAE tax environment and provide solutions which suit their business model as well as industry. The team consists of VAT experts having more than 10+ years of experience globally. In addition, we assure that our approach will be more business oriented rather than theoretical.

The range of our end-to-end VAT services is:

1. VAT implementation with the people, process, and system approach

     • Business impact analysis and its recommended solution
     • VAT registration support

2. Ongoing VAT services

     • Calculate or review calculation of VAT
     • Support in filling of VAT return

3. Other VAT services

    • Dealing with queries from the tax authority
    • Tax optimization