image description

VALUE ADDED TAX

In simple terms, VAT is a tax imposed on consumption or on the use of goods and services- it is termed as Indirect tax – it is the end result of GCC ( Gulf Cooperation Countries) countries combined efforts and subsequent Unified Agreement signed for the introduction of GCC VAT in all six Gulf Countries; Kingdom of Bahrain, Kingdom of Saudi Arabia, Kuwait, Sultanate of Oman, State of Qatar and in the United Arab Emirates. The common VAT frame work formed the basis for the introduction of a national VAT system by each member state.

Refer our GCC TAX TABLE – for detailed understanding of the Tax structure within the GCC bloc -including the introduction/implementation dates by respective stats as well as Federal Tax rate applied by them.

The United Arab Emirates have implemented VAT on 01 January 2018.

It is important for each taxable person/entity to fully understand all aspects of VAT including its provisions, regulations, administration and execution; TAX MIDDLE EAST in its capacity as Licensed Auditors and Tax Consultant act as S.M.E ( Subject Matter Expert ) and are proficient in providing services to its clientele on all matters including on critical areas like:

Supplies and Services; What is Taxable, Zero rated, Exempted and Zero rated Vs Exempt.

The computation relating to tax liabilities are critical and how we determine Net tax obligation:

  • Computation of Input tax
  • Computation of Output tax
  • Tax on imports and Exports

VAT REGISTRATION, 360 DEGREE ANALYSIS OF YOUR E.R.P: MODIFICATION & RE DESIGN:

One of the specialized service we offer is conducting A 360 Degree Analysis; Entities Business, Operational and Financial Accounting Application etc. all need to customize to make it VAT Compliant- meaning it should allow you to define, choose and code your Input and Output VAT Items, Zero and Exempted VAT items, Linkage of your Inventory/Job order module to Invoice and to Accounts Payable and Accounts Receivable and in the end Compatible with the Payment Gateway that may be set up by the Tax Authorities.

go to top