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Author Image Mr. Wasim Firoz
How To Register For Excise Tax In UAE?
  • tax
  • 2021-02-22

How To Register For Excise Tax In UAE?

Excise tax is an internal tax that is applied on several products that are harmful to health and the environment, such as alcohol, fuel, tobacco, and carbonated products. Excise tax is not paid by the customers directly, It’s paid by the manufacturer and wholesaler and they add the price to the product. So it’s clear, the Excise tax is an indirect tax. For maintaining a healthy standard environment in the country, UAE rolled out the excise tax system in the entire UAE. From Dec. 2019, the UAE government levied the excise tax on all kinds of e-cigarettes, e-liquids used in e-cigarettes, e-cigarettes devices, and sweetened drinks.

 

How to Consider that Excise Tax is Applied On Our Products?

  1. Tobacco products - If you  Business deal in any kind tobacco products.
  2. Tobacco - Business deal and produce the tobacco.
  3. Energy Drinks - Sweetened drinks that are sold in the market. The excise tax applies to all kinds of drinks that contain stimulant substances that provoke mentally and physically.  Also apply on these drinks which have caffeine, taurine, ginseng, and guarana. And any other product that makes carbonated drinks like powder, gel, etc.
  4. Carbonated Drinks - Drinks that contain aerated except the unflavoured water. And any other product that makes carbonated drinks like powder, gel, etc.
  5. Tobacco Device and Tool -  From Which People can consume e-cigarettes and other smoking products.
  6. Import Business -  If anyone imports any kind of products that are harmful to human health and environments like tobacco, carbonated products, e-cigarettes, e-cigarettes devices, and tools, etc. 

How to Register For Excise Tax in Dubai?

Excise Tax Registration is Mandatory for business under the  UAE federal decree law No. 7 of 2017 on Excise Tax.  If any corporates have been involved and to be involved in above mention products listed must be registered and have an excise tax account.

Business can be registered for excise online by follow the following steps:-

 

Step:1 -  You have to visit the official site of the Federal tax authority. Here is a link

After clicking on a link, you will see this screen.

 

Step:2 -  Before registration of excise tax, You have to login into the federal tax authority e-service account. If you are not registered here is a link for registration.

 

The FTA e-service registration page appears like the above image.

 

Step:3 -   After login into your e-service account, you will see the button which is inviting you for excise tax registration. 

After Clicked you will see the short guide. The short guide makes you understand the important requirements for the registration. After completing the short guide Click on the confirm to do the next step.

 

Step:4 -  After the confirmed guide, you have to fill the registration form. And you will get there two buttons.

  1. Save as Draft - You can Draft your form. 
  2. Save and review - You can check that the form has been filled properly.

Note: Maybe you will be logged out after  10 minutes automatically if you don’t do any activity.

 

Step:5 - You just have to hit on the submit for approval button. Great, your excise registration form has been submitted successfully for review.

 

 

Step:6 -  In this step, you will check the registration status. Click on the Dashboard button and look at the status.

  1. Drafted - It means your form either has not been submitted or completed.
  2. Rejected - Your registration has been rejected.
  3. Pending  - It means your registration still is under review.
  4. Approved - Congratulations, you have successfully registered for excise tax.

Step: 7 - If your registration is failed due to late registration. Then you have to pay the late plenty charge, The late plenty charge is 20,000 AED. To check the plenty charge and make a payment follow these following steps:

 

  1. Visit your dashboard, there you will see the “late registration penalty”. Under the Excise tax box, you can see the late payment charge. Click on the “Pay Now” button to make the payment.
  2. After clicking on the pay now button you will redirect to the E-dirham payment gateway page. There you make the payment of the late registration.
  3. You can make the payment by the e-Dirham or credit card.
  4. Once payment is done. You can check the translation history under my payment tab.

Required Documents for Excise Tax Registration.

  1. Trade License.
  2. Authorized signatory documents.
  3. Details of the bank account.
  4. Role of your business (importer, producer, and supplier).
  5. Details of products in which you deal.
  6. Copy of passport.
  7. Emirates ID.
  8. Incorporation Certificate (if Applicable).
  9. Details of firm type, sole proprietorship, or partnership.
  10. TRN registration number for excise tax in another GCC State.
  11. Registration of custom authority. (If Applicable).

Risians Accounting Excise Tax Service and Advisory In Dubai.

Risians accounting is a reputed and trusted firm in dubai which offers accounting service in dubai. Risians Accounting is a team of certified accountants who has decades of working experience in different business industries and projects.  Risians accounting also has a specialized team for a tax consultant in Dubai, who can properly assist you with your excise tax and other various tax consultant services. Along with tax consultant service, risians accounting also offers accounting and bookkeeping, auditing and assurance, Business consultancy, organization consultancy, ESR services, and other accounting related services.

At risians accounting, we provide all types of accounting services under a roof and are passionate to deliver tailor-made strategies for 100% guaranteed business growth.

Why has the UAE Government Introduced the Excise Tax in Dubai?

To make a more healthy environment in the UAE. The UAE government introduced the excise tax on all kinds of harmful products for human health and the environment. The UAE Government wants that In UAE people don’t consume harmful commodities and also increase the government income that aid the UAE government to accomplish their vision. In the UAE consumers have to pay more money on the consumption of harmful commodities like tobacco, e-cigarettes, energy drinks, sweetened drinks, etc.

Rate Of Excise Tax in UAE.

  1. On carbonated drinks 50% rate.
  2. On tobaccos product 100% rate.
  3. On energy drinks100% rate.
  4. On electronic smoking devices 100% Rate.
  5. On liquids used in such devices and tools 100% rate.
  6. On any product with added sugar or other sweeteners 50% rate.

If you still have any confusion related to the excise tax and other tax or accounting, feel free to contact the risians accounting firm in dubai.

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Author Image Mr. Wasim Firoz
What is an Internal Audit (IA) & How to Conduct?
  • Auditing
  • 2021-01-28

What Is an Internal Audit?

According to the Institutes of auditors, an internal audit is providing independent assurance on organization governance, internal control, and risk management. Let's take a short look at “governance”  - Governance is nothing but a manner of controlling and regulating the action. Governance means how the structures and hierarchies are defined in an organization. Where the structures and the hierarchies are not defined. Then how the organization is working whether the organization is efficiently and effectively accomplishing the determined objectives and goals. 

 Generally, an organization has people in the department who conduct the internal audit.  Those businesses that don’t have an auditors team have to hire the audit firm in Dubai. The internal audit provides the organization risks, how is the operation going? control environment, and applicable rules and regulations. The Audit Committee reports the internal audit report to the CEO or members of the board of directors. They take the action based on reports to make operations more effective and efficient, reduce organization risks, etc. In short internal audit refers to giving a review of the internal environment of the organization, departments of the organization.

The Objective of the internal audit is to find the loophole and weakness inside of the organization. So that they fixed quickly as soon as possible. Fast prevention protects from harm to the organization and its stakeholders. The internal Audit plays a vital role in the organization because organizations have multiple functions and processes. It helps in controlling whether the processes are strong enough to be ensuing with each other. Internal Audit helps to identify opportunities for improvement by reviewing the function of each department they helped to drive continual improvement by identifying better procedures and applying corrective actions. 

 

Objective of Internal Audit.

  1. Review the SystemThe purpose of the internal audit is to review and check the accounting system, operational of the business. It finds the weak points, mistakes, eros, business strength, and also determines the advantages and disadvantages of the rules and regulation. It allows businesses to be more effective by taking action on errors and mistakes in the current ongoing year instead of waiting till the end of the year.
  2. Assets Protection - Evaluation of the assets to consider the value of the assets and also have physical valuation verification. It also covers the sale and purchase of the assets.

  3. Paper Control - Main object of an internal audit is to keep tight control of overall activities. Management is required authentication correctly recording each financial transaction.

  4. Perfect Accounting System - To reduce fraud and mistakes. It checks the accounting system of the business and cross-checks each translation with the receipts, documents, etc.

  5. Keep a Check on Errors - Generally, businesses find mistakes and errors in the accounting at the end of the year then they solve them in the next year. But in internal audits, mistakes and errors are solved immediately.

  6. Detection of fraudIn this world, every business has an employee who makes frauds with business. Auditors check and keep an eye on every employee’s activities that make the detection of fraud much easier. 

How to Conduct an Internal Audit?

  1. Identify the Area - Organization has many processes and departments. Every department and process is driven by the written rules and regulations. Every department does different work like accounting, production, management, sales, etc. So the auditors need to identify which department is required to first audit. We are not saying that we don’t need to audit the rest of the department. To audit every department is essential but we should start the audit from which we needed most.

  2. How many times we have to audit?It is not specified that we have to conduct the audit after a particular time.  Some departments need audits annually and some half-yearly and quarterly. Based on the department processes and performance we must conduct the audit.

  3. Schedule AuditTo efficient and effective results, auditors should make an audit calendar based on the requirement. Consistently audits drive the business towards oriented goals.

  4. Audit AlertGive the notice to the department managers so that they can prepare the report and documents and they don’t feel threatened by the auditors.

  5. Be prepared - Auditors should be prepared themself for auditing before auditing. Auditors should know the organization and government rules and regulations to perform effective audits.

  6. InterviewEvery employee is interviewed by the auditors. Ask them about the work, performance, how much we are away from oriented goals, etc.

  7. Reporting - Easy readable and understandable reports should be created by the auditors so that management can take action based on the report. If auditors don’t create audit reports clear and easy to understand then management can’t understand the report. So, a report should be clear, clean, and understandable.

Benefits of Internal Audit.

  1. Strong Control - Internal audit evaluates the internal environment of the organization. It helps in controlling and monitoring the production department, HR department, Sales Department, etc. It ensures that the implementation of work is well designed and work is going towards success.

  2. Security - Internal audit ensures that people in the organization are performing their job well and No one is doing any fraud and illegal activity.

  3. Reduce Risk - Internal audit identifies the risk area in the inner side of the organization, So that action is taken in advance to prevent the risk or reduce the risk.

  4. Improvement in Compliance - With the help of an internal audit report we can be sure that current ongoing policy, rules, and regulation are appropriate. If the organization found any loophole or needs to add a new rule so they can make a policy change or add new.

When does a business need an internal audit?

  1. Before business investment - If you need investment for business growth, so before asking investors and banks. You should get conducted the internal audit because every investor must ask for financial reports and some exceptional cases other reports as well. 

  2. Identify the Mistakes and Weak Points - If You found any kind of mistake, errors, etc. Then internal audits must take place in the organization so that we can find the root of mistakes and errors and rectify them. Via internal audit, you can take everything on track and make your business performance more effective.

  3. Cast Flow Statement problem - If a business is generating sales but you don’t have enough money to pay bills.  It means that your business has Inefficiency that needs to be corrected. The internal audit is one an only fixes the inefficiency.

  4. Audit Schedule According to business rules and accounting principles, there is no defined time for a business audit. If you found any problem and error in business it means that the business needs an audit. Well, Based on the business size and daily, weekly and monthly transactions internal audits take place in the business annually, half-yearly and quarterly. 

Responsibilities and duties of the Internal Auditors.

  1. Identify the weak points and errors.
  2. Monitor and evaluate each department effectively.
  3. Should have to know the company policy before the audit.
  4. Analyze and monitor the control and risk.
  5. Recommendation for more efficient and effective work and control.
  6. Monitor and evaluate each compliance.
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Author Image Mr. Wasim Firoz
What Are The Three Types of Major Audits?
  • Auditing
  • 2021-01-24

Being a prominent auditing firm in Dubai. Today, We are writing about these three types of an audit because those business owners who don’t have any kind of information about the audit. They think the only internal and external audits are three in accounting. To increase the knowledge about the audits among the business owners. We are going to look at the three major audits that are essential for organization, company, and small business as well. We will discuss the three types of audits and also differentiate each of them.

  1. The first type of audit is an operational audit.
  2. The second is compliance
  3. The third is financial.

Operational Audit

What is an operational audit? So when we say the audit is operational, basically we're evaluating what we're evaluating the efficiency and effectiveness of any part of the company. any part of the organization like what? We could be looking at their production. Suppose a company is producing the cups. so we want to know if they're producing cops efficiently and effectively, what does efficiently and effectively mean?

In general terms, we said efficiently and effectively means operating at the lowest cost and without sacrificing, sacrificing quality. So are you really efficient doing what you're supposed to do with the least amount of resources? So this could be an operational audit now. Now, bear in mind, we said all the things the production department, this is not accounting, we're not really auditing the accounting information.

for example, look at the payroll and audit your payroll department and see how well they are running the payroll department. Now, bear in mind, and an operational audit is very subjective. Why? Because there are no established criteria. What is established criteria like generally accepted accounting principles? It is an established criteria. The Internal Revenue Code is an established criteria. It means that something that you can compare your results to in an operational audit.

It's very subjective. There are no established criteria to establish the criteria. Basically, the auditor and the client they meet together and they say this is the criteria that we're going to be looking at when we perform the audit. So an example of an operational audit could be that you are evaluating the payroll system, the computerized payroll system for efficiency and effectiveness. So what is the information that you are auditing? What is the information that you are auditing?

Maybe the number of records process, the cost of the department, and the number of errors. You're looking at those three things and you want to know how many records are we processing? What is the cost of the payroll department and how many errors are we making per person? What are the established criteria? Company standards for efficiency and effectiveness in the payroll department so the company determines we can tolerate.

Let’s take the example, five errors this is the criteria. Now, when we have more than five errors, we're not doing well. We have to do something about it. Or we could say we can tolerate 10 errors per year. Criteria could be established by the company. What evidence do you use when you're conducting an operation audit? If it's payroll, what you do is you look at the errors report. You would look at the payroll record and you would look at the payroll processing cost, how much it's costing us to process the payroll because this is part of the information that we are getting. So this is considered an operational audit. This is an operational audit.

 

Compliance Audit

Sorting. Procedures and rules, are they compliant in certain procedures, rules? Regulations, are they following certain procedures, rules, and regulations that are set by an outside or higher authority? What could be some examples of compliance audit? Well, are you complying with the minimum? Wages, so we need to make sure that your company is complying with the minimum wages. Now, what do I do? We will audit your payroll. This is not an operation or this is an audit to find out if you are following a rule that said by the federal and the state government, which is the minimum wage law, what could be another compliance audit and other compliance audits would be are you complying with your loan agreement?

You borrowed money from the bank and there is an agreement between you and the bank. Are you complying with that agreement? For example, the agreement could be you cannot pay more than 30 percent of your income in dividends. Are you complying with that? For example, you cannot sell your account receivable. Are you complying with that? so those are compliance audits now telling the truth. Also, when I was in practice, I did a lot of compliance audit because we used to audit a lot of school district in the area where I used to work.

they received money from the state government. They receive tax money. Therefore, the government wants to make sure that the school district is spending the money wisely. What they do, that they receive a lot of money from outside parties, government, state government, local government, or even private donors. And what they do, the deed, the party that's given money to the non-profit, they want to make sure that they are complying with what they are claiming,

for example, one, the IRS audit. It's basically a compliance audit. Are you really following the IRS rules? So this is what a compliance audit is. So another example would be determining whether a bank requirement for long continuation has been met.

 

Financial Statement Audit

Here we collect enough evidence, sufficient evidence to do what? To render an opinion about the financial statement, If the financial statements are in compliance with criteria. The criteria are either gap or IFRS. It doesn't have to be a gap or IFRS. The criteria could be any criteria.

The financial audit shows the financial health of the business. It is very important to find the errors based on the criteria. During creating a report auditory have to accept the accounting principal (GAAP)  according to their country. The main purpose of the financial audit report is to determine the financial health and how the business is running. Also, perform the main role in decision making.

With examine the company, record the established criteria as the loan agreement provisions. based on the loan agreement, determine that are we violating any rules. What's the available evidence, financial statements, and calculation by auditors.

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Author Image Mr. Wasim Firoz
What Is The Role Of Business Auditing In Business?
  • Business Auditing
  • 2020-12-29

Accounting is a vast field and consists of many specializations whining its framework. One of such specializations is business accounting. While accounting takes care of tracking and recording of financial transactions, auditing fulfills the role of verifying the accuracy of the accounts. Auditing in many ways determines the integrity of the whole accounting system of a company. Auditing adds credibility to your business and its transactions.  Business auditing determines the accuracy of the business’s financial operations. It makes sure that your organization’s finances are in accordance with the general accounting principles and are especially beneficial in pointing out any kind of fraud or wrongdoings and also helps in uncovering them. 

Business Auditing is an ally to all modern businesses to gain more efficiency and effectiveness in the organization’s value chain process. Business auditing is a way to ensure that the company goals are being achieved effectively. One can define business auditing as a formal and technical way to derive and assess whether the company is managing its business processes, keeping in mind its strategic objectives, suitable procedures, and specific goals. Business Auditing has become very important for large corporations to stay relevant in the market and supersede their competition. 

 

The main objectives of any business audit are:

  1. The elimination of anomalies.
  2. To be following the goals and objectives set by senior management.
  3. The encouraging continuous improvement.
  4. Risk Control.
  5. The definition of contingency plans.
  6. Suggestions for improvements.
  7. Solidifying the “process culture” in the company.
  8. Best management practices.
  9. More data for decision-making by leaders.
  10. Enables the proper training of employees.
  11. IT resources assessment being used.
  12. Safer and more reliable information.
  13. Increased productivity.
  14. Adequacy of physical and structural resources for the tasks.
  15. More transparency.

We at Risians Auditing and bookkeeping services in Dubai provide our clients with a clear picture of their business including the risks and how those risks could be mitigated. Our audit services help our clients to make informed decisions. 

As one of the leading audit firms in Dubai, we maintain records of our clients and act as a safeguard for them, building their stakeholder’s trust in the management. Our aim in the audit service is to reveal a distinct picture of the company’s finances and guide the management in taking important steps to improve the growth potential.  

Be it a small business or a complex organization, we can handle all your finances and map all areas in which your business can make the most of its resources. With our services we reliably record every aspect of financial activities taking place, which is a crucial piece of information for the management of your company. We also keep updating you about your company’s performance and how to maximize the profits for your company. The information derived from accounting assist in the long-term project planning of the business as well.

We offer different kinds of audits depending on need of the organizations. In financial audits we find out whether the organizations financial statements correctly represent its financial operations. Whereas compliance audits check if the organization has functioned as per the laws and regulations that may have an impact on the financial statements. 

We have certified technical teams with proven skills to provide you with guidance about the evolving global financial reporting framework. We also proactively monitor new accounting rules, and alert our clients to the dynamic requirements for addressing accounting and reporting challenges.  We ensure a comprehensive evaluation of the internal controls, systems and processes in the organization and recommend areas of improvements for the same. We also do a risk-based audit that involves risk assessment of the entity’s business & its key business process. It helps the risk management function of the entity by providing assurance about the risk mitigation. 

Our evaluations of you financial statements will help you decide how to approach a review of a particular function or subject area as they highlight the key objectives and risks. 

Another major aim of our auditing is to meet the organizations financial goals. A company should always strive to keep the operating cost as low as possible, while not compromising productivity. In our audit we suggest how the company can make adjustments to its practices and policies to create results that align with those goals and objectives. 

 

We at Risians strive for excellence in all our services. We handle our client’s business with utmost diligence and excellence. Our end goal is to bring a positive change to our clients’ business. We bring excellence and perfection in all our operations and make sure that they add value to their business. 

 

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Author Image Mr. Wasim Firoz
How To Hire The Best Accounting Firm In Dubai?
  • Accounting
  • 2020-12-29

It doesn’t matter, In which business you are in. Every business in this world requires accounting. Business financial reports of business provide full insight of the business that helps businesses to take drastic decisions to accomplish business goals. After the VAT introduction in UAE, Maintaining an Account and filing VAT is a must for every small business owner and also for shopkeepers. When you search for the best accounting firm in Dubai, you see plenty of accountancy firms and get confused about which is best for your business. Today, we are going to share some tips to hire the best accounting firm in dubai, UAE.

Tips to hire the best Accounting and bookkeeping firm in dubai.

  1. Understand your requirement - often an accountant works independently to serve their service to several clients. You have to understand the requirements based on your business size and business financial health.

  2. Location - With the help of accounting software you can share your business accounting with anyone in the entire world. But meeting with your accountant or bookkeeper is important rather than telephonic interaction. So, we recommend you to hire nearby best accounting and bookkeeping firm in the dubai.

  3. Fees -  You can easily hire the highest priced firm but if you don’t feel comfortable while discussing your finance, it means you will not get the service which you want. So, you should meet as many firms as you can. And choose only which firm makes you feel comfortable while discussing finance.

  4. Experience -  You should check that the accounting firm which you are going to hire has working experience in your business industry. To check, Ask them question-related your industry accounting. If you will be satisfied with the answer then you can trust them.

  5. Check out the reviews -  Today every business is online. Check out the social reviews on LinkedIn, Dubizzle, and other social websites.

  6. Reference -  Mouth to mouth reference is an old fashioned and loving way. Ask your friends, family, and business associate to find the best trusted and reputed accounting firm for you.

 

Why you need a Bookkeeping and Accounting Firm?

  1. Save you time and money -  In Business, We do sales and purchases of products every day. Bookkeepers keep records of every single financial transaction and also maintain the assets and liabilities balance sheet of the business. The Main Important thing is that they also fill the VAT and well know how to treat with transactions. Accounting Book or balance sheet shows financial health that helps in further action for growth. Maintaining accounting books is a time taken process. By outsourcing, we save time and money and get the accounting book maintained effectively.

  2. Advice - A good Bookkeeping and accounting firm first studies the business deeply and then forecasts related to the business with keeping in mind business financial health to provide you strategic advice for business growth.

  3.  Cash Flow - They help in managing the cash flow and offer valuable service when it comes to fixing issues related to the annual return and tax issues. They well know the strategy from us on how to save money on tax and expensive. They keep their eyes on the accounts that will help in keeping cashflow under the control.

What You Need?

Hiring accounting is like hiring any other professional. Before hiring any firm you have to know the requirements of the business. Specialist bookkeeping firms aid in a way to use your assets to get the best and how to redeem expenses and losses. You are good in your business but it’s not necessary that you will be good at accounting. 

. That’s why Owners take the help of an accountant because the accountant has the experience to give valuable information that explains the way for managing and gathering money to start healthy growth. You have to think about the following things are:- 

  1. Type of business you are driving. Retail businesses need different bookkeeping in comparison to manufacturing businesses, trading, etc.
  2. How much is the size of my business? With this, you can determine the accounting needs.
  3. How many does a business make daily, weekly, and monthly? It will consider the required time for accounting.
  4. Which accounting software you preferred. Accountants know well how to use all kinds of accounting software. You have to select one software that keeps more clear accounts for you. Easy for use to you.
  5. What will be my last date? Your selected last date will be for payrolls, filing tax returns, meeting with an accountant and etc.  On the last date you want, Accounts will be kept up to date. Check the performance of the business and consult to boost business performance.

  6. Some accounting firms help their client’s in setting the goal and monitor financial progress. It will be very helpful if you just began business. The firm delivers you a company policy, goal setting, and strategy to accomplish the goal, but they charged an additional fee for this service. 

 

We hope this short Information helps you. If you seriously looking for an accounting and bookkeeping firm in dubai, Risians accounting is one the best trusted and reputed accounting firm located in the heart of dubai, offers accounting service, VAT and Excise tax service, Auditing and assurance, economic substance report, Business consultancy, and Organizational consultant. Risians Accounting has a certified white-collar chartered accountant team, have 10year + working experience in different industries and projects, By using their experience our team provides a tailor-made strategy for business growth. We are proud of ourselves because we get most clients by reference from the existing clients. If you have any doubt and queries related to accounting and business consultants feel free to contact us. 

 

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Author Image Mr. Wasim Firoz
How To Apply For VAT Registration Online In UAE?
  • VAT Accounting
  • 2020-12-29

VAT (Value Added Tax)

On 1st Jan. 2018 VAT was Introduced in UAE. VAT is a new source of income for the UAE government. Generally, The VAT rate is 5% and applies one of most goods and services and for a few goods and services VAT rate is 0%. VAT Income is used to provide high-quality service in public.

It also helps the UAE government to accomplish the vision and minimize the dependence on oil, other hydrocarbons, and etc. VAT is a common indirect tax that is imposed in many countries. VAT is imposed in each stage of the supply chain. VAT is not borne by the businesses because they claim the Tax. It is bear by the end-user of the goods and services. Businesses collect the VAT from the customers and remit the same to the UAE government.

 

Importance on VAT

 

VAT is collected at every stage of selling goods and services. VAt is a must to charge on every transaction but In some goods and services vat rate is charged 0%. VAT reduces the operation of the black market in the UAE.  After the implementation of the  VAT, the UAE Government earns an extensive amount through the VAT.  After this tax, Every business has become accountable, which positively affects the economy.  Business should follow the rules and regulation of regarding the vat otherwise have to meet with the plenty.  VAT is very important for a better economy in the UAE and the development of the emirates.

 

Registration For VAT In Dubai

 

Businesses that have a turnover exceeding Dh375,000 must register for VAT. Which businesses have a turnover below Dh375,000 but have a turnover exceeding Dh187,500 can register for VAT as a voluntarily.  VAT is applied equally on the UAE mainland and in the free zone on the tax registered businesses. Tax registered businesses can recover the VAT  from the government that they have paid to their suppliers.

 

How to register for VAT In Dubai?

Businesses can easily register for VAT online by FTA online portal. FTA (Federal Tax Authority) invites the business to register VAT online. Before applying and starting registration, Businesses should know how to apply for VAT registration and understand the about details required to complete the process online. Online Vat registration helps businesses to prepare themselves in advance.

 

 

First, step for VAT Registration

You have to log in to your e-Service Account. If you have no you can create your e-Service Account. Click Here to sign up.

After logging in to your e-Service Account.  You are able to see VAT Registration, As we mentioned below.

 

 

Then click on the Register for VAT, After that You will go through the Registration guide.

 

The Guide helps you in the understanding of important aspects in a proper way for online VAT registration online in the UAE. It guides how to register and what is important and how to register. So you should read all sections of the starting guide carefully. So, You can understand all the steps. After reading the guide, you will click on Proceed. After clicking, You will navigate to the VAT registration form.

 

The online VAT registration form has 8 sections, that are mentioned below.

  1. About the Applicant
  2. Details of the applicant
  3. Applicant Contact Details
  4. Applicant Bank Details
  5. Business Relationship
  6. About the VAT registration
  7. Declaration
  8. Review and Submi

 

After completing all the 8 Section. Hit the submit button for Approval. After getting approval, congratulations you have successfully registered.

 

List of the VAT Rate in different industries.

In the UAE, VAT has three different Categories.

  1. 5% VAT
  2. Exempt VAT
  3. 0% VAT

VAT Rate On Education Industry.

Private and Government School (Excluding Higher Education) and related good and services

0% VAT Rate

Higher education Provided by the Private institute and related good and services

5% VAT Rate

Higher Education Provided by the Govt. and related good and services

0% VAT Rate

Pre School Education

5% VAT Rate

School Uniforms

5% VAT Rate

Stationery Products and School Uniforms

5% VAT Rate

Electronics Equipment

5% VAT Rate

School trips for recreation

5% VAT Rate

 

VAT Rate On Oil And Gas Industry

Crude Oil & Natural gas

0%

Other Oil and gas products including petrol at the pump

5% VAT Rate

 

VAT Rate On Healthcare Industry

Preventive and human treatment services including vaccination

0% VAT Rate

Other healthcare not for preventive and human treatment.

5% VAT Rate

Medical equipment  and medicines

0% VAT Rate

Not listed Medical equipment  and medicines in the cabinet decision

5% VAT Rate

Other Medical Supplies

5% VAT Rate

 

 VAT Rate on the Real Estate Industry

Commercial building sale and rent

5% VAT Rate

completion after the construction first sale and rent of the residential property

0% VAT Rate

The first sale of the charitable building

0% VAT Rate

Bare land

Exempt

Hotels, motels, and serviced accommodation

5% VAT Rate

Sale of Non-Bare Land

5% VAT Rate

UAE Citizen building own home

5% VAT Rate (recoverable)

 

VAT Rate on the Gold, Silver, and Platinum Jewelry Investment.

99% tradable and pure in global markets 

0% VAT Rate

<99% Pure

5% VAT Rate

Jewelry

5% VAT Rate

 

VAT Rate on the Insurance and Reinsurance.

Life insurance and reinsurance

Exempt

On all Insurance and reinsurance excluding life insurance and reinsurance

5% VAT Rate

 

VAT Rate on the Transportation

Domestic Passenger transportation in the UAE including flight.

Exempt

International transportation of passengers and good (including intra - GCC)

0% VAT Rate

 

VAT Rate on the Financial  Services

Margin  BAsed products

Exempt

Interest on forms of lending ( loans, credit card, finance leasing)

Exempt

Issue, Allotment or transfer of equity or debt security

Exempt

Products with explicit fees, commission, rebate, discount, or similar

5% VAT Rate

 

VAT Rate in Telecommunication and Electronics Services.

Wire and wireless telecommunications and electronics services

5% VAT Rate

 

VAT Rate on the Govt. Activities.

Sovereign activities

Considered outside VAT system

Not Sovereign activities

VAT Rate dependent on the good and services ignoring provider


VAT Rate on NGOs

Activities of foreign Govt.  and international activities

Considered outside VAT system

Charitable Activities by the societies and associations of public welfare which are listed by the cabinet decision

Considered outside VAT system

Other Activities not for which are not business activities

Considered outside VAT system

Business activities are undertaken by the above organization

VAT Rate dependent on the good and services ignoring provider

 

VAT Rate on Free Zones

Supplies of good between business in designated zones

Considered outside VAT system

Supplies of services between business in designated zones

VAT Rate dependent on the good and services ignoring provider

Supplies of good and services in non-designated zones

VAT Rate dependent on the good and services ignoring provider

Supplies of good and services from the mainland to designated zones or designated zones to mainland

VAT Rate dependent on the good and services ignoring provider

 

VAT Rate on Others

Export of goods and services to outside the GCC implementing States

0% VAT Rate

Activities Undertaken by employees in course of their employment, including salaries

Considered outside VAT system

Supplies between members of a single tax group.

Considered outside VAT system

Not mentioned above supplies

5% VAT Rate

Second-hand goods like used cars, antiques and etc

5% VAT Rate on the profit margin

Blog image
Author Image Mr. Wasim Firoz
Importance Of Accounting For Business
  • Accounting
  • 2020-12-29

In today's busy world, It’s very difficult for business owners to manage business and business accounts simultaneously. In every kind of business, Accounting plays a vital role. Accounting provides the business financial reports along with revenue, expenditures, assets, etc. Business financial reports present how the business is going and helps in making effective decisions for business future growth. It is used by the management, stakeholders, shareholders, Government, Tax’s authorities, etc. Business financial report for business is essential to fix the financial problems and issues and also helps in making strategic and tactical decisions. Creating a financial report for a business is easy but analyzing the data and communicating with data for better decisions is the hard part. If business owners have good accounting information then they can make effective decisions otherwise only the same industry-experienced accountants can help in taking an effectively tailor-made decision or strategy. Hiring accounting services is essential for each business.

 

 

Before the Importance of accounting let’s go through the basics of accounting

 

What Is accounting?

 

Accounting refers to the recording of each business financial transaction systematically.You can assume the accounting is a big machine, put raw financial repost, and get a well-maintained and organized business accounting report.  Accounting reports show how many assets we have, how many liabilities we have, How much we are generating revenue on a particular product or service, or project. Helps in determining the current financial position of the company and also aid in taking a step for what will be the financial position for the selected particular time. It provides a company balance sheet, profit and loss accounts,  company cash flow statement, etc. In short, Accounting helps companies to run a business effectively and efficiently and drive a business towards growth., etc

 

Importance Of Accounting

 

Record Transaction

The business needs to record each business financial transaction to create financial reports and other financial sheets and accounts for communication with business finance. Recording each transaction is a key of business and helps in driving business smoothly.

 

Reporting

Everyone in this world runs a business to earn money. An accounting report is made to ascertain that the business is generating profit or loss and how much. It helps in making a strategy for business growth. It doesn’t matter, How much is the business size? 

 

Helps In Planning The Budget. 

Every business owner runs their business along with a selected budget. It saves money and helps in taking drastic strategies and with the help of budget business owners keep observation on the expenses, Sometimes due to some expenses business owners have to exceed the budget.  To select the best budget for business growth, businesses should have maintained previous accounting records. 

 

For Banks

If you need a loan to expand your business from banks and other financial institutes. Business owners have to give them accounting statements.  To make a financial statement business should have a proper accounting system and proper balance sheet, profit and loss account, etc.  Every bank and financier wants to check the accounting statement before proceeding with the loan processes. 

 

Taking Any Decision

Accounting plays a very important role in making decisions. Because accounting shows the full insight of finance such as monthly earning, expenditures,  current assets, and liabilities. If the business does not have financial reports it would be difficult for the management in making decisions in any regard and may be impossible to achieve a business objective. To achieve business objectives businesses should maintain proper financial records.

 

Investors

There is no investor in this world who doesn’t ask for the financial statement of the business. Investors always want to check the statement, current working status, No. of employees and customers, and government taxes before investing. If an organization doesn’t have a proper accounting system investors go away and invest their money in other companies.

 

Cash Flow

Proper and well-maintained accounts help the business to keep an eye on cash flow. Businesses easily define monthly expenses and how much we can save from expenses and generate more revenue.

 

Manage Time 

Accounting determines the liabilities of the business and the paid time of the liabilities such as pension of retired employees, government taxes, provident fund, etc.

 

Detection and Prevention of Fraud

If a company doesn’t record each financial transaction they can’t detect and prevent fraud inside of the company. If in a company a proper accounting system takes place then the owner can easily detect and prevent the frauds because accounts provide the full details about each financial transaction. With help of the property accounting system owner can see each transaction information like with whom the transaction has been made, how much it’s cost, etc. accounting is the best way of Detection and prevention fraud.

 

Stock Exchange and Tax Authorities

Companies must submit their business accounting details to list in the stock exchange and fill both direct and indirect taxes to tax authorities.

 

Forecasting And Planning

Every Business Owner wants to expand their business, to expand the business they need some funds. The accounting Statement provides the exact information like, how much to be paid to the investor, debtors, other regular expenses, and how much funds we have, and how much funds will be received by the creditors.  Accountant statement plays an important role in making a decision, owners can easily consider how many funds we need for a particular part for expanding business.

 

Payment Cycle

It’s another important reason for a proper accounting system in the organization or company. We can easily monitor the cash flow such as how much and when we are receiving and giving.

 

Transparency
Accounting keeps and clears business finance for easy to understand financial health that helps the stakeholders in making decisions. Via the accounting system, stakeholders can monitor all financial transactions such as profit, daily wages, Taxes, profit, and loss, etc. These kinds of information keep transparency among the stakeholders of the company.

 

If you have any doubt and queries related feel free to contact one of the best leading accounting firms in Dubai.



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