How to Calculate VAT in UAE

how to calculate vat in UAE

Why is the computation of VAT important for businesses?

Value Added Tax (VAT) is a consumption tax levied on goods and services (5% at the point of sale). Federal Decree-Law No. 8 of 2017 introduced VAT in UAE. VAT Registration in UAE came into effect on January 1, 2018, and it has changed the taxation procedure for businesses. The law and supporting regulations mention the various products and services and the applicable VAT rates. The VAT rates in UAE may differ; details are as below:

  • Between 0% to 5%
  • Some products/services are VAT exempt
  • Few products do not fall within VAT’s scope

Businesses must accurately calculate their goods and services to determine their yearly VAT liability. If businesses do not adhere to the VAT Law’s provisions, FTA will penalize them for violation. Therefore, businesses need to have proper documents for VAT calculations, including business transaction details and supporting evidence.

You can further break down VAT into two categories

  1. VAT Charged – The VAT amount accumulated through sales of goods and services to customers.
  2. VAT payable – VAT paid to your suppliers & clients.

If the VAT paid exceeds the VAT charged, you can claim the rest from the FTA. On the other hand, if the VAT.

The difference between the two is the VAT amount you must either claim from the FTA (if VAT paid is more than VAT charged) or pay the FTA (if VAT charged is more than VAT paid). Therefore, accurate and timely VAT computation is critical for FTA compliance.

How to Calculate VAT in UAE

VAT on any good or service is calculated as input tax reduction from output tax. In this case, input tax is the tax you pay to the supplier or vendor for purchasing raw materials to produce the finished good or service. Moreover, output tax is the tax you collect from your customers or clients through the goods or services.

how to calculate vat in UAE
how to calculate vat in UAE

Our Vat Computation in UAE

NR Doshi & Partners has a valuable tool – a VAT calculator in UAE, but our services go way beyond VAT calculation. We can help you with other VAT aspects like VAT registration, Vat deregistration in UAE, preparation, and VAT Return Filing.

We also assist with the following-

  • Conducting VAT health checks.
  • Assist in VAT audit
  • Handling VAT disputes
  • Assist with filing VAT refunds……and other legal formalities

Accurate and timely VAT computation in UAE is vital for any business. We provide VAT computation services to our clients to know their actual VAT liability to ensure compliance with relevant VAT laws. We have a knowledgeable & experienced team of VAT experts, tax advisors, and business analysts who come together to streamline the tax computation process.

Using the VAT calculator, a host of other tools, and the hard work of our accomplished team, we compute the input & output tax for the entire year. Following a systematic & organized approach, we arrive at the final figure, i.e., the VAT payable amount. We also calculate the VAT with & without discount.

For each of these sales and purchases transactions, we maintain a record of all the evidence, such as invoices, receipts, bills, shipping charges, and other applicable taxes. These accurate records enable us to calculate the correct VAT amount for your business. As stated earlier, we have a unique UAE VAT Calculator that can help you with VAT computation. However, we all know that a tool cannot entirely replace human intelligence or hard work, and this is where NR Doshi & Partners comes into the picture. NR Doshi’s gamut of VAT services ensures that you get everything under one roof.

Get in touch with us for accurate VAT computation services in UAE

Our Strength - How to Calculate VAT in UAE

  • Firstly, we have a formidable team of tax advisors and VAT consultants who help you with VAT computation in the UAE.
  • Next, we help you with sound financial management through accurate VAT computation in UAE to avoid legal violations and hefty penalties
  • Lastly, we keep ourselves up to date with new VAT laws, amendments, and industry updates. We implement the best industry practices to achieve VAT compliance.
how to calculate vat in UAE

Testimonials: VAT Return Filing Service

We can vouch for the VAT services of NR Doshi & Partners any day. They have helped us with every task related to VAT – starting from registration to VAT computation to handling the legal representations. We are glad to be associated with them. Their tax experts, VAT professionals, and business advisors are always ready with answers to our queries that help us make our business operations smoother and easier. Thanks to their team for making us VAT compliant.
VAT computation 1

CFO, IT company

If I can trust someone for my VAT-related compliance, it is only NR Doshi & Partners. They have made VAT computation so easy for me. They help me with the documents required for VAT calculations, do the calculations, and help me relieve the stress from my operations. I also use the free VAT calculator available on their website for a quick calculation. They are highly recommended VAT consultants in UAE, and you should hire them if you want to accomplish VAT compliance faster.
VAT computation 2

Owner, manufacturing company

FAQs: VAT Return Filing Service

What is VAT-inclusive prices and VAT-exclusive prices?

A VAT-inclusive price certainly means the price of the product or service, including the VAT amount for each stage of the production and distribution process. The price of a product or service without the VAT amount is the VAT-exclusive price.

Are the companies dealing in products or services with 0% VAT required to register for VAT purposes?

Yes, if companies produce and distribute products or services with 0% VAT, they must register for VAT. Companies dealing in products or services exempt from VAT do not require registration.

Will you help us in maintaining records of our transactions for VAT computation?

Yes, we provide all VAT services, including guidance/advice related to VAT compliance. Furthermore, we assist you in maintaining the documents, keeping records, reviewing transactions, and VAT calculations.

N R Doshi

Contact NR Doshi & Partners for reliable VAT computation services in UAE

N R Doshi

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