Tax Compliance & Planning

Value Added Tax (VAT)

The most common type of indirect tax based on consumption of goods and services is the Value Added Tax (VAT), which was implemented in the UAE and Saudi Arabia on 1 January 2018 and consequently became an integral part of businesses in the UAE.

It is to be noted that this tax will be implemented across the GGC countries, but at different dates and at different rates.

The current rates applicable on supply of goods and services is 5% (Standard Rated) and/ or 0% (Zero Rated) , and chargeable at every step of the supply chain, subject to limited exceptions such as supply of basic food items, educational institutions, healthcare and their core activities which are exempt from VAT.

The UAE established the ‘FEDERAL TAX AUTHORITY’ (FTA) in 2016 under the Federal Law by Decree No. 13 as the overseeing authority for VAT. Consequently, the authority takes charge of managing and collecting federal taxes and related fines, in addition to distribution of tax – generated revenues and application of tax – generated procedure within the UAE.

For more information: Getting ready for VAT
Exicise Tax

Another form of indirect tax levied on specific goods is ‘Excise Tax’. The UAE started registration for Excise Tax since 17th September 2017, however, the law as per the Excise Tax Federal Decree – Law No. 7 of 2017 the effective date is 1st October 2017.

The specific goods mentioned above are typically those that are harmful to human health or the environment and are referred to as ‘Excise Goods’ which are subject to tax across the UAE at the following rates:

 Carbonated Drinks (excluding Sparkling Water) – 50%

 Sweetened Drinks – 50%

 Energy Drinks – 100%

 Tobacco Products – 100%

 E-cigarettes, Liquids & Tools – 100%

Paul & Hassan can assist you in this area by supporting and guiding you with the registration process in addition to advisory service to ensure compliance of the UAE Excise Law.

For more information: Getting Ready for Excise Tax
OUR TAX AGENT DETAILS

PAUL & HASSAN CHARTERED ACCOUNTANTS ARE A FTA REGISTERED TAX AGENT WITH

As a tax agent our services include the below mentioned, but are not limited to it:

 VAT Registration Services (including group registration services)

(For more information: VAT Registration - FTA)

 Preparation and Submission of VAT return on your behalf

(For more information: Return Filling and Payment)

 Maintaining of relevant records with respect to VAT related transactions

 Liaison with FTA for your tax – related matters

 Represent and respond to the FTA on your behalf for clarifications or queries if any, and in case a Tax Audit/ Assessment is conducted

 Assistance with respect to de – registration, if required

Services

Tax Compliance & Planning

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