We are a Government approved Tax consultancy

Focus on growing your business. Trust the accounting to us

Our Services

Latest News

Businesses must comply with VAT

Businesses across the UAE must comply with the value added tax (VAT) law by filing their returns on time, experts at a session on VAT returns and reporting stressed. Organised by the Institute of Chartered Accountants of India (ICAI) Dubai Chapter, the session provided clarity on the process of filing returns, as well as registration for businesses that have not done so yet. "In the beginning it was challenging for the businesses to register for VAT, as it was new for everyone," said Naveen Sharma, chairman, ICAI Dubai Chapter. "But, with time and clarifications from the Federal Tax Authority (FTA), the businesses started getting their doubts cleared which helped them in the registration process. I think, as of now, all big organisations have already registered for VAT, but some small businesses in the market are still struggling with registration process. In due time, I think they will also be able to register themselves." https://www.khaleejtimes.com/businesses-must-comply-with-vat

See more

UAE business back to normal after VAT roll out.

While the first week of VAT in the UAE saw a slump for several businesses, the following weeks saw the businesses come back to normal, said an industry expert. Introduction of VAT certainly created a stir in the country, but in its first month of implementation, businesses have realised that VAT is a clear and transparent policy posed to the final customer, added Vikas Panchal, business head at Tally Solutions in the Middle East, a leading international accounting and compliance software provider. The UAE introduced a 5 per cent VAT starting January 2018 with a standard return filing period of 3 months, applicable to most of the businesses while few businesses will be asked to file on a monthly basis.

See more

No VAT in realty transactions in designated zones

Sale and lease of both commercial and residential properties in designated zones will be outside the scope of VAT, according to the latest clarification issued by the Federal Tax Authority (FTA) at a meeting with a group of tax consultants in the UAE. "Sale or lease of any real estate property - commercial or residential - will be considered as outside the scope of VAT. Hence, there will be no VAT applicable on sale or lease of commercial or residential real estate properties in designated zones. Furthermore, the payment of five per cent VAT on purchase of commercial property in non-designated zones can be made directly by the buyer to FTA and the commercial property will get legally transferred to the buyer's name once he has made VAT payment to FTA," said Mayank Sawhney, director, MaxGrowth Consulting. Earlier this month, the FTA announced 20 designated zones across the UAE with seven in Dubai; three each in Abu Dhabi and Ras Al Khaimah; two each in Sharjah, Fujairah and Umm Al Quwain and one in Ajman. Those designated zones are Jebel Ali Free Zone, Dubai Airport Free Zone, Dubai Aviation City, Dubai Textile City and Dubai Cars and Automotive Zone in Dubai; Abu Dhabi Airport Free Zone, Khalifa Industrial Zone and Free Trade Zone of Khalifa Port in Abu Dhabi; Hamriyah Free Zone and Sharjah Airport International Free Zone in Sharjah; Ajman Free Zone in Ajman; Umm Al Quwain Free Trade Zone in Umm Al Quwain; RAK Free Trade Zone, RAK Maritime City Free Zone and RAK Airport Free Zone in Ras Al Khaimah; and Fujairah Free Zone and Fujairah Oil Industry Zone in Fujairah.

See more

VAT to help lift UAE Industries

UAE businesses will be least affected by the imposition of value added tax (VAT) because it is one of the lowest rates in the world and the government will also be pumping back tax funds into the development projects which, in turn, will boost a number of industries in the country, says a new study. Conducted by the Alliance Business Centers Network (ABCN), the study noted that the UAE has the lowest VAT rate at five per cent - along with Taiwan - in the Arab world, and globally too. Singapore and Switzerland have levied VAT at seven per cent and eight per cent, respectively, while both Lebanon and Australia impose 10 per cent VAT. Hungary, meanwhile, has the highest rate at 27 per cent followed by both Denmark and Sweden at 25 per cent and Italy at 21 per cent, respectively. Among Arab countries, the study showed that Tunisia imposes the highest VAT at 18 per cent, Algeria at 17 per cent, Egypt at 14 per cent and Lebanon at 10 per cent. Sherif Kamel, regional president for Russia, the Middle East and Africa at the ABCN, said VAT would ultimately support the development of large public projects that contribute to business growth and sustainability. "The potential of business opportunities in the UAE is still high compared to regional countries, given the medium and long-term vision for development and the opening up of new investment fields, i.e. investments in artificial intelligence, ICT and other traditional investment sectors," the study said.

See more

No VAT, Excise Tax increase for the next five years

he UAE has ruled out increasing value-added tax (VAT) and excise tax over the next five years, said Obaid Al Tayer, UAE's Minister of State for Financial Affairs. The UAE, along with Saudi Arabia, implemented five per cent VAT and increased excise tax by 50 per cent on energy and carbonated drinks and doubled on tobacco products. Speaking on the sidelines of the Arab Fiscal Forum held in Dubai on Saturday, Al Tayer noted that he doesn't "expect increasing VAT or excise tax over the next five years. Moreover, there's no study under consideration about introducing income tax as well in the country." International ratings agency S&P said in a note last month that some GCC countries could double VAT rate to 10 per cent mainly due to discrepancy between five per cent statutory and effective tax rate, Tim Callen, International Monetary Fund's (IMF) mission chief to Saudi Arabia, also recently said that he doesn't see any increase in VAT from the five per cent rate for the next five years. "However, we have suggested that once VAT is successfully implemented and the people have got used to it, the rate could be increased in the future depending on the revenue needs of the individual country," said Callen. The UAE is expected to earn Dh12 billion revenues from VAT in 2018 and Dh20 billion in the next year.

See more

Is 5% VAT applicable on commercial lease in UAE?

UAE started implementing a value-added tax (VAT) of five per cent from January 1, 2018 and businesses in the first phase started registering on the website of the Federal Tax Authority (FTA). In response to whether VAT applies to renting office space for commercial purposes, the Federal Tax Authority confirmed that commercial leasing does fall under the category of taxable revenue, irrespective of the type of commercial activity. The VAT will be applied on the property leased for commercial or residential purposes. Still got queries on how VAT affects real estate in UAE? Read Khaleej Times' detailed story.

See more

Our Major Clients