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What is VAT?

Value-added tax (known in some countries as goods and services tax, or GST). This is a consumption tax imposed on a product at each stage of production, before the final sale. Take, for instance a computer manufacturer: the company is taxed on all the supplies it purchased to make and produce the computer before it reaches the shelf. Then you, the customer pays the VAT (the tax the company had been liable for during the production process) as a percentage of the total price. VAT is not usually an extra or add-on to the sale price. In the UAE, the tax will be calculated as a percentage of the retail sale price of a product.

When will it come into effect?

VAT: January 1 2018 in the UAE. Businesses can register for VAT three months before the launch date (October 1, 2017). Excise tax: The fourth quarter of 2017.

Awareness programs & Training:

MIT organize awareness programs on VAT in the UAE and GCC VAT Agreement by the Tax experts for.

  • Business owners.
  • Accountants, Auditors, and other Finance Professionals.
  • Corporates.

VAT Implementation training for the Corporates as well as for group of professionals

Based on the organizational structure and need of the management and accounts & finance department, we provide training on Value Added Tax (VAT) to all the personnel of the organization who are coming under VAT compliance chain. The training to finance and accounts and IT personnel are in detail for applying the VAT concepts and for clarifying the procedural formalities required for complying the requirements. Training for managerial and other departments level are made for giving proper awareness of VAT structure and overall VAT compliance requirements.

VAT Implementation Services

The experts in VAT undertake the followings steps for successful implementation of UAE VAT in your company.

a. Understand the business model:

The TAX experts/ VAT Experts visit your office to understand the business model for designing a VAT Implementation plan which suits for the UAE VAT Regulations for your business.

b. Registration for VAT:

To comply with the law of the land with respect to VAT (UAE VAT Law), we advise regarding the procedural formalities and the date by which registration has to be made, considering whether the company got any exemption in this respect or not.

c. Analyzing the impact of VAT on your business:

In order to have a better clarity and appraisal for the management and to streamline the operations of the company by complying with UAE VAT requirements, we study the impact on business on working capital, costing and profitability.

d. Managing the VAT transaction process:

i) VAT team leader:

For shifting the transactions into UAE VAT compliance and to function smoothly and in a timely manner, we will select a responsible person/team from the company to be the head of the VAT Implementation project called VAT Implementation Project Manager.

ii) Accounting systems under VAT

The present accounting systems will be scrutinized. Proper classification/ grouping with appropriate chart of accounts suitable for VAT regime will be suggested. Necessary guidelines will be given to the accounts team for preparing the first VAT return to the Federal Tax Authority (FTA).

iii) Invoicing under VAT

The requirements of VAT invoicing under the UAE VAT Law will be implemented. Proper guidance will be given to the IT persons and proper training to the Accounts and other departments connected to sales.

iv) IT Migration

In order to incorporate the changes in the billing, accounting and other administrative procedures to comply UAE VAT formalities, necessary guidance or information required will be communicated to the IT team/software personnel either directly or through VAT Implementation Project Manager.

V) Filing of Return VAT Return

The support for preparing and filing of the first VAT return by taking the correct input tax credit against the total VAT liability with guidance on planning/better timing of cash flows.