Limitless Avenue Advisory - Tax/VAT Agent in Dubai- UAE

Reconsideration Application Submission (Mandatory in Arabic Language) with the UAE Federal Tax Authority

Approved Tax Agency from the UAE Federal Tax Authority Tax Dispute and Litigation with the UAE Federal Courts VAT Audit and Health Check

Tax Domicile Certificate

VAT Compliance and Returns Submission Tax Due Diligence

VAT Training and Workshops

  - Reconsideration Application Submission (Mandatory in Arabic Language) with the UAE Federal Tax Authority

   - Approved Tax Agency from the UAE Federal Tax Authority Tax Dispute and Litigation with the UAE Federal Courts VAT Audit and Health Check

 - Tax Domicile Certificate

-VAT Compliance and Returns Submission Tax Due Diligence

 -  VAT Training and Workshops

Global Trade Management & International Trade Planning

We perform two main sub-services under Global Trade Management:

Customs Audit

When companies established in UAE free zones get audit requests from the customs authorities, we assist them in reviewing goods types and flow to reach a reconciliation between the client’s import and export data with the customs authorities’.

This is normally missed as what gets imported may not match what the company exported due to variances in the type of goods imported for trading, raw materials for production, consumables, scrapes, and other similar types of goods.

A matching reconciliation ensure that our clients are in compliance with the GCC Customs Law and no penalties are imposed.

Trading, distribution centers and manufacturing facilities

Investors and co-operations that plan to establish a presence in the Middle East to distribute or perform manufacturing activities usually miss a lot on the planning phase.

If the aim is to source the Middle East market, then we advise clients on locations to set up distribution hubs/centers in free zones (subject to certain factors). Foreign corporation may also look at shifting production sites to the Middle East to benefit from available Free Trade Agreements among the Arab countries to avoid high import duties that may reach 30%, 40% and more.

Our trade experts are well equipped with knowledge to ensure clients make the optimal right decision to optimize their operations.

Tareq Al Wattar is one of the first approved Tax Agents in the UAE whose name is listed on the UAE Federal Tax Authority website.

He has been involved in various successful Tax Audits and VAT Disputes. As a bilingual Tax Agent and native Arabic speaker, he is specialized in drafting Reconsideration Forms mandatory to be submitted in Arabic language to the UAE Federal Tax Authority.

Tareq’s portfolio includes US and EU listed companies and tier 1 UAE local family businesses. He also supports start-ups and entrepreneurs and was appointed on the evaluation panel of the Innovation and Entrepreneurship course at Hamdan Bin Mohammed Smart University.

Tareq’s further specializes in providing strategic structures of international trade, distribution hubs and centers, industrial exemptions, and free trade agreements in the Middle East region. He is also involved in Customs Audits conducted on free zone and mainland businesses by Dubai Customs.

FAQ

Tax /VAT Agent in Dubai- UAE

Team

WHO WE ARE

We started our journey when the 8 a.m. to 5 p.m. daily corporate routine started numbing our creativity and endless goals

With our passion and entrepreneurial spirit, we decided to take a leap of faith and set up an Unconventional Financial and Business Advisory firm

OUR VISION

Building a unique brand that challenges the status quo by delivering Unconventional Financial and Business Advisory Services

OUR MISSION

Utilizing our out-of-the-box mindset to break the traditional rules of business advisory services

STATEMENT

We go beyond your expectations to add real value and ensure you make the right business decision.

What is Value Added Tax (VAT)?

Value Added Tax (VAT)

 The UAE Ministry of Finance defines Value Added Tax (VAT) as an indirect tax that occasionally is referred to as a type of general consumption tax.

In a country which has a defines Value Added Tax (VAT), it is imposed on most supplies of goods and services that are bought and sold.

defines Value Added Tax (VAT) is charged at each step of the supply chain and ultimately, consumers bear the defines Value Added Tax (VAT) cost while businesses collect and account for the tax, in a way acting as a tax collector on behalf of the government.

What is the difference between the Tax Agent / VAT Agent and the accountant?

The UAE VAT Law is a law with a lot of provisions and articles. It is difficult for accountants with no proper understanding and deep knowledge to understand it. The UAE Federal Tax Authority has trained and Approved Tax Agents / VAT Agents to understand the language of the Tax Law and then help taxpayers to properly apply it.

Understanding the difference between a Tax Agent / VAT Agent and an accountant avoids taxpayers from making mistakes and potentially being exposed to fines and penalties.

Why to register for VAT?

You are obliged to register for Value Added Tax (VAT) if your taxable supplies and or imports exceed the mandatory registration threshold of AED 375,000.

 You may also choose to register for Value Added Tax (VAT) voluntarily if the total value of your taxable supplies and or imports (or taxable expenses) exceed the voluntary registration threshold of AED 187,500.

What is the difference between Tax Agents / VAT Agents and Tax Consultants?

There are several differences between Tax Agents / VAT Agents and Tax Consultants. They are mainly:

1. Tax Agents / VAT Agents must speak Arabic

2. Tax Agents / VAT Agents must pass a taxation test and obtain a Tax Expert certificate from the UK

3. Tax Agents / VAT Agents are required to obtain Professional Indemnity Insurance

4. Tax Agents / VAT Agents are the only party that can represent taxpayers before the UAE Federal Tax Authority (FTA)

5. Tax Agents’ / VAT Agents’ names are listed on the UAE Federal Tax Authority (FTA) website

6. Tax Agents / VAT Agents enjoy direct contact with the UAE Federal Tax Authority (FTA) through dedicated representative.

Can I recover Value Added Tax (VAT) I pay on my purchases for my business?

If you are registered for Value Added Tax (VAT), then you can recover the tax related to your taxable transactions (subject to conditions)

Value Added Tax (VAT) and start ups      Tax Planning is a must for start-ups.  At inception they must understand how Value Added Tax (VAT) is applicable to their business and transactions to avoid any potential penalties in the future.

In some cases, the amount of penalties may exceed the revenue achieved in a whole year.

Profit Distribution and Dividends      

   Not all business transactions are subject to Value Added Tax (VAT). An example is dividends paid by a company to its shareholders are not subject to Value Added Tax (VAT)

E-trader License  Businesses operating under an E-trader License shall register for Value Added Tax (VAT) if they meet the registration threshold.

Value Added Tax (VAT) Penalties  Taxpayers are permitted to apply for a Reconsideration Form if they have doubt about penalties imposed by the UAE Federal Tax Authority on their business transactions.

It is critical to understand that Reconsideration Forms must be applied for as per the Value Added Tax (VAT) Law and within the permitted time frame to avoid rejection of the application by the UAE Federal Tax Authority.

Reconsideration Forms application rejection      In cases where the UAE Federal Tax Authority rejects a taxpayer’s Reconsideration Form application, the taxpayer along with the Tax Agent / VAT Agent shall analyze the reasons of the rejection and in case they are not convinced, they shall proceed and apply for an objection before the VAT Dispute Committee. This is usually done by seeking an accredited layers assistance.

 The UAE Federal Tax Authority always provides facilities to taxpayers so long they adhere to the regulations. Therefore, when applying for a Reconsideration Form or an Objection Letter, they both shall be drafted in accordance with the applicable laws and executive regulations.

Are social media influencers subject to the Value Added Tax (VAT)?

            Yes, if they meet the Value Added Tax registration threshold, they are required for register for Value Added Tax (VAT) with the UAE Federal Tax Authority.

This is also applicable to singers and actors who meet the registration threshold on their taxable suppliers.

What is the importance of bookkeeping and taxes for entrepreneurs?

Entrepreneurs are the pillars of the national economy in every country and they run startups that can become large companies competing globally.

Startups must protect themselves from tax errors to avoid unnecessary expenses and to ensure the company's success an

d maintain its reputation.

 Tax (VAT) Blog 

Value Added Tax in the United Arab Emirates 

Value Added Tax or VAT is a tax that needs to be paid for the consumption and use of goods or services levied with each sale. This is a form of indirect tax mostly borne by the end-customer. Businesses are accountable for the collection of the tax on behalf of the government. 

Introduction of VAT in UAE 

VAT was first introduced in the United Arab Emirates (“UAE”) with effect from 1 January 2018. The general rate of VAT is 5% in the country and applicable to most of the products and services sold. 

Why was VAT Introduced?

The Gulf States (Bahrain, Kuwait, Iraq, Oman, Qatar, Saudi Arabia and the UAE) have always attracted foreign workers through their promise of tax-free living. However, the UAE government wanted to diversify its revenue and step away from its dependency on oil. In its first year, VAT income in the UAE was approximately around 12 billion dirhams. VAT provides the country with a source of new income. It contributes directly to the continued provision of high-quality public services in the future. The most important reason for introducing VAT in the UAE was to help the government reduce its dependence on income that is derived from oil and other hydrocarbons.

UAE VAT Law 

Here are some of the key elements of the VAT law in the UAE: 

• Flat 5% VAT rate levied on imports and taxable supplies (goods and services)

• VAT registration threshold requirement is AED 375,000

• 0% VAT is levied on exports, international passenger transport, importing of precious metals, publicly provided education and crude oil 

• The introduction of Tax Agents who must be licensed and registered with the UAE Federal Tax Authority

Impact on Economy 

Irrespective of the low VAT rate which is 5% and in some cases 0% as well, the cost of living has certainly increased in the UAE. Some argue that it adversely affected the purchasing power of consumers, but VAT was introduced with the intent of generating additional sources of revenue which will help the overall economy and people on the log run. 

Not only Dubai, but the whole of UAE has emerged as a business hub. Thousands of people from within the country and around the globe set up their own businesses in the UAE due to its relaxed laws. Operations thrive due to the booming economy. This promises high returns for all types of businesses. However, business owners need to adhere to certain rules of the government such as obtaining the adequate license to operate under, hire and sponsor employees according to the immigration regulations, registering the company under the UAE VAT law, if meeting the registration threshold and other regulatory obligations. 

VAT Filing of VAT Tax Returns 

A VAT Return summarizes the valuation of supplies and purchases made by a taxable person during a tax period. This helps in determining the taxable person’s VAT liability. Tax Returns are electronically filed through the UAE Federal Tax Authority online portal. Ensuring the filing of an accurate VAT Tax Return is vital given the recent introduction of the VAT Law.

Taxable businesses are required to file for VAT returns with the UAE Federal Tax Authority usually within a span of 28 days of the end of the tax period, as defined for each respective business.