Value Added Tax is an indirect tax. It also referred to as general consumption tax. UAE has implemented VAT, it is imposed on most supplies of goods and services that are bought and sold. VAT is one of the most common type of tax implemented around the world. Over 150 countries have implemented VAT (or its equivalent, Goods and Services Tax), including all 29 European Union (EU) members, Canada, New Zealand, Australia, Singapore and Malaysia. Business organizations have to pay the government tax which collected from the customers while it may also receive a refund from the government on tax that it has paid to its suppliers. The net result is that tax receipts to government reflect the ‘value add’ throughout the supply chain. To explain how VAT works we have provided a simple, illustrative example below (based on a VAT rate of 5%)
After completing this course you will be able to:
» Understand VAT concepts in details and its applicable rules in UAE.
» You get understanding of VAT account creation, adding information and manage it for filling.
» You will be able to handle all VAT related matters for your company.
» Describe the way in which VAT operates, particularly in respect of output tax and input tax, in such a way that it remains neutral in its application by businesses.
» Identify how VAT applies to international transactions of both goods and services and how the system allows by ensuring that imports and exports are neither advantaged nor disadvantaged over domestic supplies by applying Double Tax treaty.
» Explain the impact of exemption in VAT and how tax is calculated by businesses that deal in exempt supplies.
» Categorize some of the more important administrative issues that VAT requires.
» Recognize how to plan your VAT balance.
» Identify the risks behind improper VAT management.