Unit No: 1283
DMCC Business Centre
Level No 1
Jewellery & Gemplex 3
United Arab Emirates
Frequently asked Questions
These are just some of the most common questions we get asked. For anything else, please contact us – we would be delighted to help.
It is called indirect, because although it is taxing the consumer of goods and services, it is collected and paid by the companies.
VAT is designed to be neutral as a tax to the P&L of a business. It indirectly has an impact on:
- Expenses due to Implementation and compliance costs
Companies exempt from VAT have a full P&L impact, since they don’t have to ability to fully or at all recover the VAT on their inputs (expenses, capital assets etc.).
Call us to arrange for a company briefing on VAT and its particular impact on your business.[/vc_toggle][vc_toggle title=”Do I need a consultant to implement VAT?” color=”blue” el_id=”1476103277490-178db69b-3628″]VAT is a complex tax. It applies on goods and services as well as at all stages of production. Moreover, it applies to local, intra-GCC, export and import transactions.
It is advisable to seek advice from experienced VAT consultants that can assist your company to assess, implement and apply compliance systems to VAT. Failure to comply with VAT legislation may put your company at risk of:
- Damaged Reputation
Have in mind that Auditors are not equipped with the particular knowledge of Tax and Tax Application and that’s why all Big4 have separate tax departments.[/vc_toggle][vc_toggle title=”How do I select a VAT Consultant?” color=”blue” el_id=”1476103338205-ec862cc3-a793″]Selecting the appropriate VAT Consultant is a difficult task. Objectively, we recommend the following approach:
- Research for available Tax Consultants or Auditing Companies with organised and experienced tax departments.
- Review experience and profile of the associates. Insist on experience in VAT experience in jurisdictions with more then 5 years old application of VAT.
- Based on the nature of business and transactions you perform use consultants from the following jurisdictions:
- Domestic transactions only – Any jurisdiction
- Imports & Exports – Any jurisdiction
- Intra-GCC transactions – Only European Union
The GCC VAT has the uniqueness of transactions between the Member States, which are compatible only with the European Union framework.
Additionally, E.U VAT framework has been used as the basis of GCC VAT.
E.U VAT consultants are more familiar with the particulars of such transactions and can more easily help companies apply correctly VAT in their transactions.[/vc_toggle]