VAT Solutions

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VAT Solutions

Chhokar & Co Group has been assisting clients worldwide with a whole range of tax obligations – including VAT – for more than two decades.

With the introduction of Value Added Tax (VAT) in the UAE, our team of qualified chartered accountants have been focusing on clarifying and explaining our clients’ VAT obligations.

Our objective always is to help your business be compliant by setting up appropriate in-house recording and filing processes. With support from Chhokar & Co our clients ensure that they do not incur any penalties.

We will help you identify any potential challenges you business may face in the implementation and operation of VAT. We can also assign you a dedicated VAT consultant to update you on the latest legislation, directives and guidance in this very important area.

VAT Consultancy

This is the most important aspect of our service. It gives us the opportunity to fully understand your day-to-day business operations, the type and volume of supplies you make, VAT inputs and outputs, the applicability of reduced rates and exemptions, and your record-keeping capacity. This enables Chhokar & Co to assess how VAT applies to your business and identify the changes that are required to your existing accounting systems and business processes.

VAT Registration

The VAT law sets out mandatory and voluntary VAT registration thresholds. It is essential to determine which activities of the business are considered to be taxable supplies for VAT registration purposes. In some instances, it may be beneficial for certain businesses usually start-ups with no sales and very high expenses – to register for VAT on a voluntary basis so that you can recover their input tax early. It is also important to ensure that a business gets registered for VAT within the specified deadline to avoid penalties for late registration.

The VAT registration process requires a number of documents to be submitted to the Federal Tax Authority (FTA). Submission of insufficient or incorrect documents will delay the approval process significantly. Furthermore, some sections of the application need to be completed in Arabic. Our team has prepared a simple checklist of all such documents and can provide samples of the various formats required by the FTA. We only submit an application after we have thoroughly reviewed all the documentation. This will help to ensure a swift and straightforward VAT registration.

VAT Implementation

Chhokar & Co will undertake a forensic review of every business area likely to be impacted by the VAT regulations to ensure that the operations and processes are fully in compliance. The format of documents and wording on contracts may have to be revised, and some businesses may need to re-evaluate current pricing strategies to accommodate the impact of VAT. It is also essential to identify whether your accounting system has the capacity to process various types of output and input VAT, as well as to generate VAT return files and FTA Audit files in the approved formats. Businesses will also have to assess the effect of VAT on your cash flow and identify ways to minimise any negative impact. Chhokar & Co can assist clients to address all these issues.

VAT-compliant Bookkeeping

Many of our clients outsource entire accountancy function to Chhokar & Co. We ensure that clients’ books of accounts are updated in a timely manner and all sales, purchases and expense transactions are recorded in full compliance with VAT regulations. We will also prepare the invoices and credit notes as per FTA-approved formats. It is essential to charge the correct VAT amount on each relevant supply and it is equally important to claim input VAT only on permitted transactions under the VAT legislation. Errors in this respect may attract unexpected penalties in future. Chhokar & Co’s bookkeeping service also includes the preparation of financial accounts on a monthly basis, which assists our clients to stay up-to-date with your business performance and financial position.

VAT Returns

VAT returns must be filed on a monthly or quarterly basis, depending upon the size of your business. There are specific deadlines for these returns and incremental penalties are applicable for default. These filings involve a declaration of standard-rated supplies, zero-rated supplies, exempt supplies, reverse charge transactions, imports and relevant taxes. A well-maintained Accountancy system and process is essential to produce the correct figures with ease at the right time. Chhokar & Co can assist your business with the correct and timely filing of VAT returns and can also provide guidance with the process of settlement for amounts due.

VAT Recovery

Businesses whose input VAT exceeds their output VAT for the period, are entitled to seek reimbursement from the FTA. The FTA may request an explanation or further supporting documents before processing the refund. Chhokar & Co can liaise with the FTA on behalf of your business on all tax related matters. Chhokar & Co can respond to FTA queries, submit requests for reconsideration of FTA decisions, and assist clients with any tax audits conducted by FTA. Where appropriate, Chhokar & Co can also apply for de-registration of VAT on a client’s behalf.

Chhokar & Co can provide all of the above services on the basis of either a comprehensive VAT package or a specific service module. We understand that every client’s situation is different and have the flexibility to tailor our services your particular requirement.

Our aim is always to combine the highest level of professional service with the most straightforward approach. We ensure that our clients fulfil their tax-related obligations within the UAE whilst developing and growing their business.

Chhokar & Co Dubai

20th Floor, Office B, Gold Tower, Cluster I, Jumeirah Lakes Towers, Dubai, United Arab Emirates

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