Value-added tax is a consumption tax levied on every value addition to a product or service during the supply chain from the production to point of sale. Usually the burden of VAT is passed onto the customer and the tax is withheld by the supplier at each stage of supply chain. The amount of VAT charged is on the product’s cost less any cost of materials used in the product that have already been taxed.
VAT has been implemented in UAE since 1st January 2018. We understand that it is a complicated process and has been recently implemented which is why, not many experts will be found in the market. At A&A Associates we have qualified tax experts who can assist you in setting up the perfect VAT system for your business. Whether it’s a service industry or trading of goods, we have got your back and will guide you as well as implement the VAT system for you.
Following are the steps involved in VAT implementation services provided by A&A Associates:
- Understanding of the business environment
A proper walk-through observation will be held at your premises to understand all the processes and procedures of the business. A proper understanding would help us identify the areas to plan a strategy for VAT implementation.
- Training sessions
A proper guide and training session will be held for each department being affected by the VAT. The basics and necessities of the VAT UAE law will be taught to the relevant persons in each department.
A team leader will be appointed from the company to assist the team in proper implementation of the VAT system.
- Analysis of VAT impact on business
A proper evaluation of the impact on each department will be performed by our team. We will study how the VAT affects the company’s working capital, expenses and profitability. This analysis shall be performed for you to vary the operations as per the most profitable situation possible.
Our team will assist your company in filing the forms and performing other relevant procedures to get registered under the VAT system with the Federal Tax Authorities.
- VAT implemented on accounts system
The chart of accounts on the accounting system will be edited. A suitable chart of account for the VAT affected classes and groups will be tailored to suit your business needs.
- VAT invoicing
Our experts will guide your IT and accounts person on VAT invoicing. A proper training will be given for issuing VAT invoices and credit notes as per the VAT law in UAE.
- IT migration
A proper guidance will be provided on how to migrate all the past billing, accounting and other processes to the VAT implemented system. These guidelines can be communicated either directly or through the appointed leader both. Any queries will be answered by our tax experts who are equipped with the knowledge of all VAT laws in UAE.
- Filing of VAT return
At the end of each month, the input tax that the Federal Tax Authority owes you against your total tax liability can be claimed. Our team will help you with the procedure of computation of the correct credit amount as well as filing of the return.