Since Jan 2018, Value Added Tax is applied in the UAE. It is mandatory to keep records of all business transactions and file them on regular basis. Digital Tax is a service enabling SMEs to remain compliant with FTA for their VAT-related needs. Built on state-of-the-art Cloud technology, the platform helps process business' input & output taxes to generate tax filing reports for submission to FTA.
Skylines helps SMEs primarily with ensuring their VAT compliance with the FTA. Additionally, Skyline provides Accounting, Inventory Management, Fixed Assets Management, and IFRS/IAS Assessment across UAE. Boasting a team of qualified FTA Tax Agents, Chartered Accountants & Analysts; Skylines also employs state-of-the-art cloud technology.
A business must register for VAT if its taxable supply exceed AED 375,000 per year or a business may choose to voluntarily register if its taxable supply is between AED 187,500 and AED 375,000 per year, during last 12 months or anticipated in the next 30 days. Businesses with taxable supply lesser than AED 187,500 per year need not register.
FTA has defined certain obligations on businesses in UAE. All businesses in the UAE will need to record their financial transactions and ensure that their financial records are accurate and up to date. Businesses that meet the minimum annual turnover requirement (as evidenced by their financial records) will be required to register for VAT.
End-consumers generally bear the VAT cost in the form of a 5% increase of most goods and services they purchase in the UAE, while VAT registered businesses collect and account for the tax, in a way acting as a tax collector on behalf of the government.