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.
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