VAT deregistration of TRN from the FTA is required in certain cases. Following are the scenarios when a VAT Registered person should go for De-Registration.

• • If he stops making Taxable Supplies.

• • If the value of the Taxable Supplies made over a period of (12) consecutive months is less than the Voluntary Registration Threshold ie, AED 187,500/ and he does not anticipate that they’ll cross the Voluntary registration threshold during the coming 30-days.

VAT Deregistration for VAT in the UAE is an online process which can be accessed through the Federal Tax Authority’s online portal. Before proceeding for VAT Deregistration, the applicant should consider various aspects such as turnover requirements or discontinuation of business etc.

The Registrant must apply to the Authority for de-registration in accordance with the cases mentioned above, within (20) business days of the occurrence of any of them.

The Authority shall accept a Registrant’s application for deregistration where the above two conditions are met.

If the registered person doesn’t deregister within the prescribed time period as per the law, it will attract penalty from the Authority.

Once the FTA confirms acceptance of your de-registration application form, you will be notified the message of “Deregistration Pre-Approval”. The status of your de-registration in the dashboard will be changed to ‘Pre-Approved’.

You shall also be required to submit a final tax return which will be generated by the system in the “VAT returns” section. You will receive an email and an SMS notification informing you of the status of the application and requesting you to complete the payment of the outstanding liabilities.

Our Tax professionals in DREAM LIGHT Group can support you in the following areas:

• • We will visit your office on a periodical basis (weekly/monthly/Quarterly) to compile the information for filing the VAT Return. At the end of each VAT return period, we prepare the VAT return of behalf of your company in accordance with the provisions of UAE VAT law.

• • We ensure that the VAT returns are filed within the specified time in each tax period.

• • Proper guidance for the payment of Minimal Tax Liability as per the provisions of the UAE VAT Law will be advised.

• • Optimal Tax Planning for the company will be done.

• • We will be available to represent in front of the authority on behalf of you as and when required.

VAT Returns are to be filed through online portal of the FTA. One has to access the VAT Return Form by login into the e-services of the FTA portal by using the respective user name and password. Our Tax Expert will help you fill the VAT return form with all relevant information within the due date prescribed by the authority.

The VAT return discloses the Tax amount due (or refundable as the case may be) for a particular Tax Period. One has to disclose the total output tax payable as well as the input credit available against such Output separately. Excess of Output Tax over and above the Input Tax for a tax period is the amount of Tax Liability to be paid. The content of the VAT Return Form includes the following:
Output Tax:

• • Tax Liabilities under Standard Rated Supplies (5%) emirates wise.

• • Tax Liabilities on goods imported through customs.

• • Tax on goods imported on which tax liabilities are not created – if any.

• • Tax liability on import of services.

• • Tax refunds provided to tourists.

Input Tax:

• • Tax on Standard Rated purchases

• • Tax on Standard rated expenses.

• • Tax on import of goods

• • Tax on import of services

• 1. Timely, precise & cost-effective support / VAT advisory services from the VAT Expert for the queries or issues confronted by the businesses.

• 2. VAT impact analysis.

• 3. Formulating solutions and preparing for recommendations designed to provide advice on taxation for clients.

• 4. VAT Consultant Service through meetings and discussions.

• 5. Advisory Service on call.

• 6. Queries or clarifications raised through telephone / email will be answered or advised through telephone / email itself.

• 7. VAT Consultants service with personal visit to the client office.

• 8. Handling industry specific issues with precise guidance to comply with the UAE VAT law.

• 9. Advisory Services with regard to Customs clearance as well as designated zone related issues.

UAE has entered into the world of Taxes very recently. While Excise Tax was introduced with effect from 1st October 2017, Value Added Tax (VAT) has just taken its course from 1st January 2018. The rate of Excise tax for carbonated drinks is applicable at 50% and it 100% applicable for tobacco and energy drinks. But, at the same time the VAT rate is applicable at just a minimal rate of 5%, which is the lowest tax rate among other parts of the world.

The UAE businesses are facing quiet a number of challenges while implementing VAT in their business stream to ensure that they are VAT compliant. As VAT is a newly adopted concept in the region, it requires qualified and experienced Tax professionals’ advise to support the businesses especially, while complying in the initial stages of this transition. DREAM LIGHT Group provides experienced chartered accountants as their tax advisers. Tax Experts have relevant industry specific experience in taxation complying with international standards.

• 1. DREAM LIGHT Group provides qualified Chartered Accountants with exceptional professional experience in diverse industries from different countries with international tax experience.

• 2. We assist the clients efficiently to manage their VAT transactions by complying with VAT laws and advising on transactions. The TAX Experts ensure that the businesses comply with the rules and regulations so that there are no overpayments made and Input Credit is taken correctly on time. Our TAX Advisory Services is designed to comply with your business needs to cater you our best advisory services in the UAE.

We provide VAT (Value added Tax) Advisory Services in Dubai, Abu Dhabi, Sharjah, Ajman, Fujairah, Ras Al Khaimah & Umm Al Quwain providing clients with a wide range of TAX Services in UAE with accordance to the client’s business needs. VAT Experts at DREAM LIGHT Group are committed to provide the best VAT Advisory Service in the UAE to the clients in compliance with the rules and regulations of VAT in the UAE having their international experience in Taxation. The Tax Team at DREAM LIGHT Group are professionally equipped with relevant industry experience from different ends of the globe.

accounting software is mandatory in an organisation to ensure that it complies the UAE VAT law which will result that there is no discrepancy during a tax audit by a tax auditor. We check whether the accounting software used in the company is capable of handling:

• 1. Proper Tax Invoice

• 2. Proper Tax Credit Note

• 3. Proper Accounting on Reverse Charge (RCM while importing goods / services into the UAE)

• 4. Calculation of Output Tax

• 5. Recording of Input Tax

Review of calculation of Output Tax includes the following:

• 1. Whether all taxable supplies at standard rated are charged at respective tax rate. (As of now 5%).

• 2. To ensure that only eligible zero-rated supplies are charged as zero-rated and proper supporting documents are maintained.

• 3. To ensure that out of scope supplies if any are accounted properly.

• 4. To check whether the goods imported into the UAE through UAE customs are recorded under Reverse Charge Mechanism

• 5. To reconcile the amount shown in FTA records as value of goods imported and the output liability on such imports with the records shown under the books of accounts.

• 6. To check whether the services if any imported from outside the UAE are recorded under Reverse Charge Mechanism.

• 7. To check whether only the eligible input credit are taken against such import of materials or goods under reverse charge mechanism.

• 8. To check whether exempted supplies if any are recorded and reported properly.

Input tax claimed by the taxable person has to be properly reviewed to ensure that no discrepancies are detected during the tax audit. We exercise verification such as:

• 1. Whether only eligible input credits on purchases and expenses are claimed.

• 2. In the case of mixed supplies (exempted and zero rated / standard rated) whether the input credit is calculated as per the formula provided under the law.

• 3. Whether input credit on import of goods and services are calculated and claimed properly.

Our tax experts will review the Vat return files to be submitted to the authority and make sure that:

• 1. The entire output tax payable to the authority are recorded properly.

• 2. Only eligible amount is claimed as input credit.

• 3. The reporting of output tax under reverse charge are recorded properly.

• 4. Zero rated supplies and exempted supplies are recorded separately.

• 5. Additional reporting such as profit margin scheme, etc., are reported properly.

to check whether the due tax amount is paid to the tax authority before the due date periodically.

The Registration for Excise Tax in the UAE has started from 17th September 2017. All Taxable entities are entitled to register for Excise tax through the FTA’s online portal. The Excise Tax Federal Decree-Law No. (7) of 2017 in the UAE shall be effective from 1st October 2017. Hence the registration has to be done on or before 30th September 2017.

The below-mentioned groups will now have to register for Excise Tax in the UAE

• • Producers of Excise goods.

• • Importers of Excise goods.

• • Stockpilers of Excise goods.

• • Warehouse keepers responsible for excise goods.

An applicant while registering for Excise Tax should provide following:

• • Details of the applicant (name / legal type / other legal details)

• • Contact Details

• • Banking information

• • Business Activity & related information

• • Customs Registration details

• • Declaration

Businesses are required to have the legal documents relating to the Entity.

For example:

• • Trade License

• • Certificate of Incorporation (if you have)

• • Articles of Association

• • Partnership Agreement

• • Document of Ownership

• • Emirates ID etc

• • Customs Registration Document or Customs Number

• • Power of Attorney if applicable

DREAM LIGHT Group are the TAX Experts providing VAT Consultancy, VAT Advisory and VAT Implementation Services in the UAE. We do support and guide the business community to register for Excise Tax in the UAE as well as advisory service on the compliance of UAE Excise Law

Tax Residency (Tax Domicile) Certificate is issued by the International Financial Relations and Organisations Department (IFROD) of the Ministry of Finance (MOF), the United Arab Emirates (UAE) for eligible government entities, companies, and individuals to avoid double taxation of income earned outside UAE.

When a taxpayer is imposed by similar taxes in two countries on the same income and which harmfully affects the exchange of goods, services and capital and technology transfer and trade across the border, it is called double taxation.

The double taxation can be avoided if the country from which the taxpayer earns the income (source country) has signed Double Taxation Avoidance Agreement (DTAA) with the country in which the taxpayer is a resident (residence country).

The United Arab Emirates has concluded 115 Double Taxation Avoidance Agreements (DTAA) to most of its trade partners across the world.

To avoid double taxation by taking the advantage of Double Taxation Avoidance Agreement, eligible government entities, companies and individuals should be issued tax Residency (Tax Domicile) Certificate from the Ministry of Finance (MoF) of the UAE government.

• • Individuals:He/she should be a resident in the state for at least 183 days.

• • Companies:The Company has been operating in the UAE for at least one year.

Review of calculation of Output Tax includes the following:

• • For individuals the following documents are required to be submitted:

  • Passport Copy
  • Valid Residence Copy (Emirates ID)
  • Certified Tenancy Contract / Title Deed.
  • Certified bank statement for at least 6 months (for the year for which TDC is required)
  • Source of Income/Salary Certificate.
  • Immigration Report of residency (Exit & Entry report)

• • Companies are required to submit the following documents:

  • Valid Trade License.
  • Certified Articles of Association, Certificate of Incorporation and/or Memorandum of association.
  • Copy of the company owners/partners/ directors ID. (Emirates ID)
  • Copy of the company owners/partners/directors’ passport.
  • Copy of the company owners/partners/ directors Residential Visa.
  • Certified copy of the audited financial accounts and audit report.
  • Certified bank statement for at least 6 months (for the year for which TDC is required)
  • Certified Tenancy Contract / Title Deed.
  • Tax forms (if any) from the country in which the certificate is to be submitted.

The certificate is valid for a period of one year from the date of issue