Taxation Services
Taxation Services
In any economy, taxes constitute one of the major sources or potential sources of revenue of the Government. More than being a source of certain revenue, taxes provide an opportunity and act as a tool for the citizens of the country to take part in the nation building. A sense of responsibility is automatically instilled as every unit of a Governmental service bears a portion of the citizen’s contribution to it by way of his tax money. Taxation also spreads a comprehensive net to bring in a significant portion of business happening in the country under a regulatory framework. Sooner or later, proactive Governments identify this opportunity and utilize taxation to take the citizens on a path towards the nation building.
United Arab Emirates was considered as tax free until the introduction of Excise Tax in 2017 followed by Value Added Tax in 2018. This has thrown new challenges which can be translated into immense opportunities by the business entities in the region. Frequent updates in tax rules and expected implementation of intra GCC tax framework promises an altogether new and dynamic horizon in the field of taxation.
Our Services
At MBM, we are determined to provide the best tax services to our clients. With the GCC countries and the major countries in the world making it a point to have a well-developed taxation system in place and the countries across globe working like one large global village, UAE VAT regime is constantly reinventing itself with the changing global taxation net.
Our team at MBM comprises of tax experts who are well-versed with the UAE taxation rules and can guide you at every step to ensure compliance at every step.
VAT Services
Value Added Tax is a tax on consumption levied at each stage of the supply chain and ultimately borne by the end consumer. With the inception of VAT in the region, organizations must maintain high levels of operational efficiency in maintaining documents and compliance with VAT laws. Documentation and timeliness are very key aspects to compliance. To support these requirements various controls and policies must be adopted and implemented which need to be continuously monitored.
MBM team, with our vast GCC experience and exposure to Indirect Taxes ensure to provide expert opinion and advisory services in connection with VAT.
OUR SERVICES
VAT impact study
For the businesses in this region, VAT is relatively new and so are its impacts on the business. Being indirect tax, the effect of taxation is on multiple planes. It is a key decisive factor in costing. So, the multilayered impact of VAT on the business needs to be analyzed in detail for an effective decision-making process.
Our expert team gets a clear understanding of the nature of business to extend hands to support you in
- Analyzing the transactions to study the impact of VAT on costing, profitability and working capital.
- Analyzing the overall impact of VAT on the business by studying the business model to streamline the decision-making process and pricing in line with the VAT regulations.
- Giving inputs regarding implementation of Accounting/billing software in compliance with VAT.
At the end of the engagement, we will be issuing a VAT Impact Study report comprising of Transaction analysis, our findings, and key recommendations that will enable your transition to a VAT based Accounting system successfully.
VAT registration services
VAT Registration in UAE is mandatory for
- all those businesses that meet the mandatory turnover threshold limit, ie, AED 375,000/- per annum. This includes sale of goods or services in the normal course of business by an entity.
- Voluntary registration can be done if the taxable supply exceeds AED 187,500/- per year. Taxable supply includes all sales, imports and taxable expenses.
Our team at MBM will help businesses in getting VAT registered by submitting all required documents as per Federal Tax Authority (FTA) requirements.
Compliance review and filing of VAT return
Compliance with respect to documentation requirements is key in VAT law. Companies registered for VAT must maintain their books of accounts as per the rules prescribed in the VAT Regulations brought. VAT returns are to be periodically submitted to the Federal Tax Authority by entities registered under VAT.Information provided in the Returns should be accurate in all aspects and it should be supported by sufficient and appropriate documentation. Registered entities would require independent checks to ensure the accuracy of the returns submitted and have a feedback on the documentation & other compliance aspects.
We at MBM offer services to you in this regard by aiding in submission of periodic VAT returns and verification of documentation & other compliances. Our team at MBM assists you in preparing and filing of VAT returns as per regulations issued by Federal Tax Authority, based on accounting records maintained. Our expert team will review the documents maintained by your Company to ensure compliance with the guidelines provided by the Federal Tax Authority and provide ample guidance regarding timely amendments and consequent changes in the existing documentations & other regulations.
We also assist you in all communications with the FTA related to VAT.
VAT health checkups
VAT regulations mandate an audit by the FTA. This means that all registered taxpayers will be subject to an assessment at some point. To ensure compliances are in place and preparedness for a VAT audit, it is advisable to get your VAT compliances reviewed. This conundrum can be addressed by conducting a VAT Health Check wherein you will be getting your VAT returns reviewed along with an extensive verification of supporting documents and other compliance requirements.
We at MBM help you in addressing your issues with regards to VAT Compliance by providing VAT Health Checks. Our team of professionals undertake a wholistic review of your business, periodic vat submissions, documentations and other compliance & reporting procedures adopted. Our objective is to comment on the accuracy of the returns filed, documentations & compliances. Additionally, we help you to be prepared for the tax audits and update you on the recent development and suggest corrective actions to be taken if any.
VAT Deregistration
Tax De-registration is the provision for a registered taxable person to cancel the VAT registration. The penalty for any company that fails to De-Register within the timeframe specified in the Tax Law is AED 10,000.
The businesses can opt for voluntary VAT deregistration if the taxable supplies for the past 12 months do not exceed the Compulsory VAT registration threshold of AED 375, 000 but are above the voluntary registration threshold of AED 187,500.
We help you to complete the De-registration requirements and experience a stress-free process. We check your financial situation and various other factors to assess eligibility for the De- registration as per the law. After that, our consultant prepares a complete set of documentation for submission and after submission of the VAT De-Registration application, if there are any clarifications required by Federal Tax Authority (FTA), we help you in resolving these with the FTA.
Assist in VAT refunds
FTA allows remittance of full refund amount due to a taxable person. Simply put, when the taxable person has paid input tax more than the Output tax payable by him, he is eligible for a refund.
Filing of Refund application and catering to the further requirements of FTA for deciding the reasonableness of the refund claim requires the assistance of a VAT expert. We support our clients in ensuring an efficient VAT refund application process. There are distinct categories under which the refund application can be classified into:
- VAT refund application by UAE Nationals on New Residences
- VAT refund application under VAT Tourist Refund Scheme,
- VAT refund for Business Visitors,
- VAT Refund for Expo 2020 Official Participants
Excise Tax Services
Excise Tax was introduced across the UAE in 2017. Excise tax is a form of indirect tax levied on specific goods which are typically harmful to human health or the environment. These goods are referred to as “excise goods”. The purpose of the legislation is to reduce consumption of unhealthy and harmful commodities while also raising revenues for the government that can be spent on beneficial public services.
- Carbonated drinks - include any aerated beverage except for unflavoured aerated water.
- Energy drinks - include any beverages which are marketed, or sold as an energy drink, and containing stimulant substances that provide mental and physical stimulation, which includes without limitation: caffeine, taurine, ginseng and guarana.
- Sweetened drinks
- Tobacco and tobacco products
- Electronic smoking devices/ tools and liquids used in these devices
EXCISE TAX MECHANISM
At MBM, we make sure that we understand your needs and objectives so that our advice supports the way you want to work.
OUR SERVICES
Business review services
Business review is undertaken to assess the exposure and risk of the entities to Excise tax. Our Reviews are structured to incorporate industry specialized knowledge into account while assessing the business. Our expert team conducts business reviews and assist our clients in assessing their Excise tax exposure. Based on our review we provide advice on structuring business transactions, including cross border transactions, in an Excise Tax cost effective way.
Excise tax registration
Registering for excise tax is the responsibility of any business engaged in:
- The import of excise goods into the UAE
- The production of excise goods where they are released for consumption in the UAE
- The stockpiling of excise goods in the UAE in certain cases
- Anyone who is responsible for overseeing an excise warehouse or designated zone i.e. a warehouse keeper.
Our team will guide you through the process with our experts answering all your queries at every step of the way.
Compliance, review and filing of returns
Excise tax regulations require utmost compliance with respect to documentation. Entities with excisable activities must maintain their books of accounts as per the Excise Tax law. Excise returns are to be periodically submitted to the Federal Tax Authority by entities registered under Excise Tax law. Information provided in the Returns should be accurate in all aspects and it should be supported by sufficient and appropriate documentation. Registered entities would require independent checks to ensure the accuracy of the returns submitted and have a feedback on the documentation & other compliance aspects.
We at MBM offer services to you in this regard by aiding in submission of periodic Excise Tax returns and verification of documentation & other compliances. Our team at MBM assists you in preparing and filing of periodic Excise tax returns as per regulations issued by Federal Tax Authority, based on accounting records maintained. Our expert team will review the documents maintained by your Company to ensure compliance with the guidelines provided by the Federal Tax Authority and provide ample guidance regarding timely amendments and consequent changes in the existing documentations & other regulations.
We also assist you in all communications with the FTA related to Excise tax.
Warehousing
Any registered entity importing, producing, or storing excisable goods can suspend/defer the payment of tax by preserving the goods in an excisable Designated Zone.
A warehouse keeper is any Person approved and registered at the Authority to supervise a Designated Zone in accordance with the provisions of Executive Regulation on Excise Tax.
Designated Zone is any fenced area intended to be a free zone that cannot be entered or exited except through a designated road and any area designated by the Authority as being subject to the supervision of a Warehouse Keeper as per the Regulations.
Any Person who carries on or intends to carry on operation of a Designated Zone shall apply for Registration as a Warehouse Keeper.
FTA has prescribed Stock reporting requirements to be followed from 01 st January, 2021.
We at MBM assist our clients in registering as warehouse keeper and adhering to the reporting requirements as prescribed by the FTA.
Excise tax deregistration
Deregistration is the process where a registered person can apply to the tax authority to discontinue the excise tax registration if he is no longer liable for excise tax as per the provisions of the law. The deregistration has to be applied online through the Portal. He must ensure that he does not carry out any taxable activities in the UAE for the purposes of Excise Tax regulations before applying for deregistration. Also, he must ensure that there are no tax dues in respect of Excise tax to the Regulatory Authorities.
We assist our clients in applying for Excise tax deregistration by informing them about the pre-requisites for deregistration and assisting them in complying with all the requisite formalitites.
Tax residency certificate
A Tax Residence Certificate is a document issued by the UAE Ministry of Finance evidencing the applicant’s formal status as a UAE resident in respect to a particular Double Taxation avoidance agreement (“DTT”) between the UAE and a specific foreign jurisdiction.
A Tax Residence Certificate is the core document in support of an application to seek the benefits of a DTT.
The applicant must create an online account in the MoF Portal to apply for the certificate. Tax Residence certificate application form alongwith supporting documents need to be filled and uploaded and fees need to be paid. Once the certificate is generated, the Certificate can be collected from the Ministry or by courier to the Registered Domestic address.
Our experienced professionals can support and guide you in the verification of the documentation required and obtaining the Tax Residency Certificate or Tax Domicile Certificate without any hassle.
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