Samples of excise goods that are given away for free will also be
subject to excise tax. Excise tax is not a transaction based tax so tax is due on the
goods when they are released for consumption (i.e. enter free circulation) in the UAE,
regardless of whether or not they are intended for sale.
The following goods are subject to excise tax in UAE at the
following rates of tax: Carbonated drinks – 50% Energy drinks – 100% Tobacco
– 100%
A business must register for VAT if its taxable supplies and imports
exceed the mandatory registration threshold of AED 375,000. A business must register for
VAT if its taxable supplies and imports exceed the mandatory registration threshold of
AED 375,000. Similarly, a business may register voluntarily if its expenses exceed the
voluntary registration threshold. This latter opportunity to register voluntarily is
designed to enable start-up businesses with no turnover to register for VAT.
Unlike VAT, excise tax is paid once in the supply chain and
businesses that have purchased excise goods cannot obtain a refund of the excise tax
paid on those goods. There are a limited number of cases where a refund of excise tax
will be available. Those cases are: a) When excise tax has been paid on an excise good,
which is then produced in to a ‘new’ excise good, on which excise tax is
again due; b) When excise tax has been paid on an excise good that is then exported
outside the UAE; or c) When amounts have been paid to the FTA in error. In the above
cases, a business registered for excise tax will be entitled to a refund of the excise
tax paid. The refund will be granted by allowing a deduction of the refundable amount
from the tax due in the next excise tax return period. There are also a limited number
of cases where refunds will be available to people who are not registered for excise
tax. Those cases are: a) Where excise tax has been paid by certain international
governments, diplomatic missions and international organisations in the course of their
official activities, where a reciprocal agreement is in place between the UAE and the
entity’s home country; and b) Where excise tax has been paid in the UAE by a
person who is registered for excise tax in another GCC country that is implementing
excise tax and who has then exported the excise goods out of the UAE and paid excise tax
in that other GCC country.
Accounting is the concept used to define an organization’s
financial activities in depth and routinely. There are also various kinds of businesses,
audit accounts, administration accounts, policy accounting, and small to medium-sized
firms. This is the way the company tracks the financial documents, organizes them, and
knows them. Accounting services show you whether you earn a profit or not, what your
cash balance is, how what the company’s assets and liabilities really are worth,
and which aspects of the corporation really generate profits.
VAT on E-commerce sales in UAE depends on the location of supplier
and recipient. 5% VAT will be applicable on online sales in UAE.
As a seller on Amazon, it is your responsibility to comply with the
VAT Law at all times. This includes issuing valid tax invoices for sales made to
customers, collecting VAT (if applicable) and payment of VAT to the UAE Federal Tax
Authority (“FTA”).It is your sole responsibility to comply with all legal
and VAT requirements for issuing Tax Invoices to buyers in respect of your sales
transactions. If you are unsure as to whether you have to issue a Tax Invoice to the
buyer, we recommend that your consult with your tax advisor.
In case of return orders for which a refund is authorized to the
customer, you are required to provide the customer with a valid Tax credit note.
Yes. If you are a non-UAE resident selling goods that are located
in the UAE to a UAE customer, then you will be required to register for VAT irrespective
of the level of turnover from such sales.A non-established business selling goods from
the UAE shall be subject to a NIL VAT registration threshold. VAT registration will be
effective from the date on which you started making sales in the UAE.
Your task is choosing the best audit firms in Dubai which makes a
significant impact on your business—and certifies that your finances are
well-managed—because that can make or break your business. Hiring a reliable,
qualified, and reputable auditing firm is one of the best things you can do for
protecting and promoting your business.Selecting your auditing firm is an important task
and must be done carefully. You need to appoint an audit firm that adds value to your
business by identifying wrongdoings, staff weaknesses, and internal control weaknesses.
Most importantly, you need a firm that provides recommendations to address the issues
identified during the audit.
New VAT fines and penalties have been announced and the good new is
that FTA has reduced them to help businesses to recover from the impact of COVID-19. FTA
has reduced the penalties on VAT to motivate the businesses to avoid fines by ensuring
VAT compliance. The amendments will be effective from 28 June 2021.Read more: VAT fines
and penalties
Businesses are confused about how to treat discounts under VAT in
UAE. As per FTA, VAT will be calculated on discounted prices in UAE. Discount is often
used as a sales strategy by businesses to attract their customers. A Discount is
referred as a reduction in price.
YES! Outsourced accounting services in UAE means hiring an
accounting firm that provides a full accounting department experience. This usually
comprises everything from the day-to-day transaction coding, accounts receivable,
accounts payable, payroll and taxation to managing financial reporting.Small businesses
in UAE face many challenges in the early stages of their business. Hiring a full time
dedicated accountant is very costly in UAE because a business needs to provide the
accountant with company visa, health insurance, travel ticket and monthly salary along
with the integration of a suitable accounting software. Businesses in UAE can avoid all
this cost by just outsourcing accounting services for their small business in Dubai,
UAE.
