Value added tax (VAT) is an indirect tax that is imposed on the consumption of goods and services. It is an important part of any business, as failure to comply with VAT regulations can lead to serious financial consequences. That’s why it’s crucial for businesses in the United Arab Emirates to understand the intricacies of VAT and its implications. Our training center offers comprehensive VAT courses that cover all aspects of VAT, including its principles, regulations, and compliance requirements. Our courses are designed to equip individuals with the knowledge and skills necessary to manage their businesses’ VAT obligations and ensure compliance with the UAE VAT law.
After completing this course you will be able to:
- Understand the concept of UAE Corporate Tax and its impact on the company.
- Understand the impact of UAE Corporate Tax on the operational and financial performance of the business.
- Differentiate various types of Businesses which are exempt from UAE Corporate Tax.
- Differentiate between the tax profit and accounting profit for Corporate Tax calculations.
- Scope of Corporate Tax in UAE and its calculations.
- Submission of Corporate Tax Return.
- Reconciliation of Accounting profit with Tax Profit and application of 9% Corporate Tax rate.
- Identify potential errors in Corporate Tax calculations and how to avoid them.
WHO CAN DO?
• CEOs, CFOs & COOs
• Managers / Senior Managers
• Finance Managers/ Finance Controllers
• Internal Auditors
• Cost and Budgeting Managers
• Sales Managers
• Procurement Managers
• Associate Staff Dealing in Payable and Receivables
WHAT IS THE COURSE STRUCTURE?
Scope of Tax
• Concept of Taxable Supply
• Deemed Supply
• Scope of VAT on imports
• Establishing the responsibility of recording VAT
Supply of Goods & Services
• How to differentiate between the Supply of Goods and the Supply of Services
• VAT impact on the Supply of more than one component
• VAT impact on agency relationships and supplies via agents
• VAT recording on issuance and redemption of Vouchers
• VAT treatment for discounts and subsidies
• What supplies are considered as deemed supplies?
• Free Goods
• Intra-GCC supply of own goods
• Goods for the private use of owners and employees
• De-registration effect on unsold goods deemed as supplies
• Under what conditions deemed supplies are not subject to VAT
• When to register for VAT?
• Who should register for VAT?
• Exceptions to VAT registration i.e. when you are not required to register for VAT even if you have taxable supplies
• Mandatory vs Volunteer VAT registration
• Treatment of Capital Assets sale while calculating VAT registration threshold
• VAT registration applicability on non-residents
• The concept of Group VAT registration
Date of Supply Rules
• When to account for VAT as per the date of Supply Rules
• What is the date of supply rules under special circumstances
• For consecutive supplies (e.g. construction contracts)
• Supplies through vending machines
• Date of supply for deemed supplies
• Date of supply for vouchers
Place of Supply Rules
• How to establish that place of supply of any goods/services in UAE?
• Place of supply of Goods
• Place of supply of Services
• Place of supply of water and energy
• Place of supply in special cases e.g. implementing state effect
• Place of supply of telecommunication and electronic services
• Place of supply of real state
• Place of supply of transportation services
Value of Supply Rules
• On what amount VAT should be charged under Value of Supply Rules
• Value of Supply
• Value of Import and what is the effect of landed cost components and customs duty
• Value of Supply to Related Parties – special considerations
• Value of Deemed Supply – on what value e.g. free goods to be taxed
• Value of supply in case of discounts and subsidies
Profit Margin Scheme
• What is a profit margin scheme
• Who is eligible for the profit margin scheme?
• How to calculate VAT on the profit margin scheme?
• Recordkeeping requirements for entities registered under a profit margin scheme
Single & Mixed-use Supply
• The concept of composite supply
• VAT Treatment of supplies of more than one component
• Treatment of VAT while you are selling exempt items
• Impact of VAT exemption on certain industries
• Residential buildings
• Financial Services
• Bare land
• Local passenger transport
• Exemption on imports and suspension of the VAT
Zero-rate Supply of Goods & Services
• What is the concept of zero rating?
• General rules for zero-rated supplies
• What are the zero-rated goods and services?
Industry-wise Impact of Zero-rated Supply of Goods & Services
• Export of goods & Services
• Export of telecom services
• International transport of goods and passenger
• Zero-rating of certain means of transport
• Precious metals (e.g. gold, silver, platinum)
• Treatment of residential buildings and converted residential buildings
• Charity buildings
• Educational services – higher education vs school education
• Healthcare services and supply of healthcare products
Reverse Charge Mechanism and VAT on Imports
• The concept of the Reverse Charge Mechanism
• Accounting entries in the reverse charge mechanism
• Tax calculation and tax reconciliation under the reverse charge mechanism
• The implication of import VAT on intra-GCC transshipments
• VAT on imports by unregistered persons
Designated Zone & Its VAT Impact
• The concept of Designated Zones
• Designated Zone vs Free Zone
• VAT Treatment on Designated Zone Trade under special circumstances
• Imports in Designated Zones
• Exports from Designated Zones
• Supply of goods from Designated Zones to mainland companies
• Supply of services from Designated Zones to mainland companies
• Supply of goods/services within the same Designated Zone
• Supply of goods/services from one Designated Zone to Another Designated Zone
VAT Calculation & Payment of VAT
• How to calculate final VAT liability/refund
• Recovery of input VAT – what are the conditions
• Disallowed input VAT
• Treatment of input VAT paid before registration
• How do Government entities and Charities recover VAT?
• Filing of VAT Return – Procedure & Demo
• Filing of VAT Return
Partial VAT Exemption
• What are partially exempted entities?
• How partial exemption impacts the entity’s eligibility to recover input VAT
• Calculation of partial exemption ratio for recoverable input VAT
• Adjustment of input VAT post recovery in the final tax return
Capital Asset Scheme
• Definition of Capital Assets
• The concept of qualifying assets
• Application of Capital Asset Scheme
• Adjustments required under Capital Asset Scheme
Reversal/Adjustment of Output VAT
• When to reverse/adjust output VAT?
• Mechanism of adjustment of Bad Debts
• Issuance of Tax Credit Note
• The format of the Tax Credit Note
Tax Invoice & Tax Credit Note
• Requirements for issuance of Tax Invoice
• Evidence of Supplies to the GCC Implementing States
• Invoice currency, rounding off, and 14 days invoice rule
Violations & Penalties
• Administrative penalties
• Tax evasion penalties
• Joint liabilities in case of penalties
• Mandatory records to be maintained under tax laws
• Record keeping for input and output
• Language of records
• Record retention period
DO YOU GET A CERTIFICATE?
You will get a certificate of completion, which is highly reputed and accepted by employers.
UAE Federal Law on Tax Procedures – Overview
Importers and Exporters
Filing VAT Returns