Value Added Tax

Comprehensive VAT Services in UAE: Your Trusted Partner in Tax Compliance

Expert Financial Solutions for Your Business Success

In the dynamic business landscape of the UAE, understanding and managing VAT obligations has become crucial for sustainable business operations. At Hallerbos, we offer specialized VAT services in UAE that help businesses navigate the complexities of the tax system while ensuring complete compliance with local regulations. Our expert team provides comprehensive solutions tailored to your specific business needs, making VAT management seamless and efficient.

Understanding VAT Services in UAE: A Complete Overview

In the UAE, Value Added Tax (VAT) is a consumption tax applied to each stage of the production and distribution of goods and services. It was introduced on January 1, 2018, and is now an important part of the VAT system, providing a valuable new revenue stream to fund infrastructure and public services in the UAE. All businesses or individuals working or doing business in the UAE should be aware of the VAT compliance rules in order to comply with the tax laws.

Hallerbos has a unique VAT Service in UAE offered to help you with the VAT compliance process. Our team of tax professionals will walk you through all the complications of VAT legislation and help you with your firm through the registration process, filing, accounting, and general compliance with VAT with peace of mind.

The Impact of VAT on UAE Businesses

The implementation of VAT has greatly altered the tax system in the UAE. Given the standard rate of 5% applied to most goods and services, businesses have to acquire an understanding of how VAT will affect their operations: –

Responsibility for collecting VAT – Businesses must collect and report VAT on behalf of the government.

Record – keeping – Businesses will need to ensure they keep accurate business records.

Filing requirements – VAT returns must be submitted within the allowable timeframes.

Cash flow – Appropriate management of VAT implications can affect business cash flow.

Competitive position – The manner in which VAT is managed can create or eliminate competitive pricing options.

How VAT Works in the Supply Chain

VAT operates as a multi-stage tax system where businesses act as intermediaries, collecting VAT at each transaction point while being able to claim refunds for VAT paid on inputs:

Supplier Stage: A supplier sells goods/services and collects VAT.
Distributor Stage: The distributor pays VAT on purchases, collects VAT on sales, and claims input tax credits.
Retailer Stage: The retailer follows the same process as the distributor.
Consumer Stage: The end consumer bears the ultimate VAT burden without the ability to claim refunds

This system ensures that VAT is collected throughout the supply chain while preventing cascading taxation, as businesses can recover the VAT they pay on purchases through the input tax credit mechanism.

Comprehensive VAT Services in UAE by Hallerbos

As a leading provider of VAT services in UAE, Hallerbos offers tailored solutions to help businesses comply with tax regulations efficiently while optimizing their tax position:

VAT Advisory
Services

VAT Training

VAT Refund

VAT Registration
De-Registration

VAT Return
Filing Services

VAT
Implementation

VAT
Health Checkup

VAT Registration Services

Businesses operating in the UAE with taxable supplies exceeding AED 375,000 annually must register for VAT. Our VAT services in UAE include:

Determining your VAT registration obligations
Preparing and submitting your VAT registration application
Guiding you through the Federal Tax Authority (FTA) verification process
Obtaining your Tax Registration Number (TRN) efficiently
Setting up proper accounting systems for VAT compliance

VAT Return Filing Services

Our experienced tax consultants ensure accurate and timely submission of VAT returns:

Calculating your VAT liability or refund position
Preparing comprehensive VAT returns
Submitting returns to the FTA within deadlines
Maintaining proper documentation for audit readiness
Resolving discrepancies or issues with previous filings

VAT Compliance and Advisory

Stay updated with the latest VAT regulations and optimize your tax position with our advisory services:

Developing VAT-compliant business processes
Conducting VAT health checks to identify risks and opportunities
Providing guidance on complex VAT scenarios (e.g., cross-border transactions)
Creating VAT manuals and policies for your organization
Offering ongoing VAT support for day-to-day operations

VAT Audit Support

In case of FTA audits, our VAT services in UAE include comprehensive support:

Preparing all necessary documentation for audit submissions
Representing your business during FTA inquiries
Addressing audit findings and developing remediation strategies
Negotiating with tax authorities when necessary
Implementing improved controls to prevent future issues

Expert VAT Registration and Compliance Solutions

Understanding the different VAT categories is essential for proper compliance:

Standard Rated Supplies (5%)

Most goods and services in the UAE are subject to the standard 5% VAT rate. When businesses make standard-rated supplies, they must charge VAT and can claim input tax credits for VAT paid on related expenses.

Zero-Rated Supplies (0%)

Zero-rated supplies have a VAT rate of 0%, but businesses can still claim input tax credits. This category includes:

Exports of goods and services outside the GCC
International transportation services
Certain healthcare services and related goods
Investment-grade precious metals
Newly constructed residential properties (first supply within 3 years)
Educational services (subject to specific conditions)

Exempt Supplies

Exempt supplies are not subject to VAT, but businesses cannot claim input tax credits on related expenses. This category includes:

Financial services (with specific conditions)
Residential property leasing
Bare land (with exceptions)
Local passenger transport services

VAT Penalties and Compliance Risks

The FTA imposes significant penalties for non-compliance with VAT regulations:

Late registration: Up to AED 20,000
Late filing: Starting at AED 1,000 with escalating penalties for repeated offenses
Late payment: 2% immediate penalty, plus 4% after one month
Incorrect returns: Up to AED 5,000 for first offense, higher for repeated errors
Failure to maintain records: Up to AED 10,000

Why Choose Hallerbos for VAT Services in UAE

When selecting Hallerbos for your VAT services in UAE, you benefit from:

Specialized Expertise

Our team consists of qualified tax professionals with specific experience in UAE VAT regulations.

Comprehensive Solutions

We offer end-to-end VAT services, from registration to de-registration.

Customized Approach

Our solutions are tailored to your industry and specific business requirements

Risk Mitigation

We help identify and address potential compliance issues before they become problems

Efficiency Improvement

Our services streamline your VAT processes, reducing administrative burden

Cost Optimization

We help identify legitimate opportunities to minimize your VAT liability

Ongoing Support

Our team provides continuous assistance as regulations evolve

Industries We Serve with VAT Services in UAE

Our accounting services in Dubai cater to diverse sectors, including:

Retail and E-commerce

Real Estate and Construction

Manufacturing

Professional Services

Healthcare

Education

Hospitality and Tourism

Financial Services

With our step-by-strategy, we guarantee all your VAT requirements will be met:

Initial Assessment: Understanding the nature of your business and your current VAT situation. Implementation: Developing adequate systems and processes to ensure compliance with VAT requirements.
Documentation: Creating a procedure manual for records which satisfies FTA standards.
Periodic Review: Carrying out routine health checks on VAT compliance.
Return Preparation: Estimating VAT obligations and preparing the necessary returns.
Filing and Payment: Submitting the returns and making the required payments on schedule. Continuous Improvement: Enhancing the processes as the law and business change.

Contact Hallerbos for Expert VAT Services in UAE

Don’t allow VAT compliance become a burden for your business. At Hallerbos our VAT specialists can provide a robust suite of VAT services in the UAE to manage your compliance obligations whilst optimising your tax position.

Hallerbos – Your Trusted Partner for VAT Services in UAE

Book your free consultation now to start your journey toward seamless VAT compliance.