Vat in Sharjah

VAT is an essential form of taxation which is applied to most goods and services. In the UAE five percent of value-added tax is applicable to your business. VAT is implemented on electronic items, cars, car rental services, jewellery, food and beverage, clothes, shoes, electricity bills, fuel prices, cinema tickets, cosmetic products, financial services, hotel services and water or electricity bills. VAT is exempted from tuition fee, educational services, medical fee, medicine costs, surgical equipment, public transport services, airline tickets, visa charges and salaries. It is also exempted from direct and indirect exports, international transports, air passenger transport, goods and services related to supply means of transport, aircraft and rescue vessels, supply of goods and services, air sea and land means of transport, investment in precious metal, sale of property, real estate services, charitable building supplies, social services, oil or gas supply, healthcare service and sale of land. However, an important thing to note is that the above goods and services come under zero-rated VAT which is that these supplies are free of VAT but not other forms of taxation. In some countries instead of value added tax the government consolidates it into value-added tax into another form which is referred to as goods and service tax (GST). Six countries present in the gulf cooperation council (GCC) implement VAT, the federal tax authority is responsible for administering, collecting and participating in federal tax enforcement. They have the authority to perform tax audits and administer penalties if a business does not comply with the local tax laws.

Business owners and service providers need to assess the impact of VAT on their business as it is an important component of their business. They need to prepare for VAT registration and VAT implementation and file for VAT returns which can be a tedious and cumbersome process. VAT consultants help you by guiding you through the process VAT registration for your business. They study your business and assess it accordingly to understand how VAT implementation affects it. They conduct seminars to familiarize clients with the process of VAT implementation and explain how it affects your business. They formulate a four-step process to help you through VAT registration and vat implementation. The four steps include project implementation, impact assessment, design and implementation and finally registering and testing. Project preparation is the process of gathering internal and external sources to inform businessmen and stakeholders accordingly. They prepare all business firms as it impacts IT systems, finance systems, human resources, legal terms and also inter-organization transactions. VAT consultants update IT systems and computers to handle value-added tax legislation and prioritize issues according to current VAT implementation procedures. VAT consultants calculate the impact of VAT on your business and prioritize issues to prepare them for implementation. They do so by looking into different aspects of your business such as organization, operation and financial administration accordingly. In the design and implementation process consultants design a method according to the initial impact assessment which was made. They schedule requirements and implement changes to understand the VAT obligations of your company. VAT implementation will impact other aspects of business such as the supply chain, human resources and the information technology sector as well. VAT consultants register your company for value added taxation in the gulf corporation council (GCC). The government of UAE has set up a tax procedures law which states that any type of business must possess accounted records related to tax information. An important law states that all tax-related information needs to be submitted to the authority in Arabic text. Some popular locations to get in touch with VAT consultants in Sharjah are Rolla Centre, King Faisal road, Mohamed bin Saqar Alqasimi street and Al Manakh.