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Vat Accounting in Dubai

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VAT Accounting Services in Dubai, UAE

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Auditing
VAT
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Value Added Tax (VAT) is a type of tax added to some goods and services in the UAE. It is based on the value of the item or service. VAT accounting in the UAE needs careful record-keeping, writing things down correctly, and checking the details. That’s why it’s a good idea to get help from a skilled VAT consultant. In Dubai and across the UAE, many businesses choose Mubarak Al Ketbi for VAT accounting. Mubarak Al Ketbi’s VAT accounting services in Dubai are made to help your business keep track of VAT activities and follow UAE VAT rules.
FAQs VAT Accounting Services in Dubai
FAQ

Frequently Asked Questions on Vat Accounting in Dubai

How is supply of <a href="https://makca.co/bookkeeping-services-for-real-estate-in-dubai/" data-wpil-monitor-id="451">real estate</a> treated in terms of VAT in Designated Zone?
The supply of real estate, including its sale and lease within a Designated Zone, is treated as out of scope of VAT under the condition that the supply is not considered as consumed. However, services related to real estate—such as those offered by real estate experts or through licenses—performed within the Designated Zones are subject to the standard 5% VAT rate.
How do we account for goods supplied within a Designated Zone?
Where both the supplier and recipient are located within the Designated Zone, such transactions are generally treated as Out of Scope for VAT, except when the goods are consumed within the Designated Zone or by an individual located there. In specific scenarios, such as purchasing items like furniture or computers used by the business itself, the standard VAT rate of 5% would apply.
What is the information that has to be included in a tax invoice?
A valid tax invoice must include the following details: (1) the label 'Tax Invoice', (2) date of issuance, (3) names, addresses, and TRNs of both the supplier and the customer, (4) a description of the goods delivered or services provided, (5) applicable VAT rate, and (6) total VAT amount payable on the transaction.
How do I differentiate and account for sales as zero-rated, exempt, and taxable?
In the regular course of business, all local supplies are subject to the standard 5% VAT. However, transactions related to certain sectors—such as Education, Healthcare, Real Estate, and Transportation—may qualify to be treated under zero-rated or exempt supplies, depending on the specific nature of the goods or services provided.
If a <a href="https://makca.co/vat/registered-tax-agents-in-uae/" data-wpil-monitor-id="287">tax registrant supplier has appointed a clearing agent</a>, how is it accounted for in VAT?
If a VAT-registered clearing agent has been appointed, they must record a negative adjustment in Box 7 of the VAT Return form—Adjustments to Goods Imported into UAE. This entry will offset the auto-populated figures in Box 6—Goods imported into the UAE. For the owner of the goods, the values must be manually entered into Box 7, and the import VAT can be recovered by declaring it in Box 10 Amounts subjected to the reverse charge.
Is it possible to configure the VAT Report (VAT 201 Form) in the accounting software?
Yes, configuring the VAT Report in accounting software is possible, depending on the software used. The accuracy of this report, however, depends on correct data entry and proper setup of all related accounting records within the system.
Is it mandatory to keep <a href="https://makca.co/our-events/corporate-tax-awareness-session-hosted-by-mubarak-al-ketbi-chartered-accountants-in-uae/" data-wpil-monitor-id="457">accounting and tax</a> records for 5 years?
Yes, it is mandatory for businesses to retain accounting and tax records for a period of 5 years from the end of the related tax period. In cases involving the capital assets scheme, the taxable person is required to maintain the records for 10 years.

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