Frequently Asked Questions
Who we are?
We are a FTA Approved Tax Agency and a leading professional firm in U.A.E, providing Accounting & Bookkeeping, Tax Agency services, Tax advisoy, audit, and management consultancy services in UAE. We offer Accounting bookkeeping, Taxation, Tax Agency services, financial reporting, management consultancy and all VAT related services to all business across UAE.
Do you setup and restructure accounting department and system for new and existing companies?
Yes, we do provide services to setup and restructure accounting department for both new and existing businesses.
Do you provide software solutions and training?
Yes, we do provide customized software solutions as well as other softwares such as Peachtree, QuickBooks, SAGE, Tally ERP, and Xero etc.
Do you provide internal audit services?
Yes, we conduct internal audit of companies to assess their internal control systems and accordingly advise them with our suggested solutions for risk mitigation.
What role IDMS can play in managing accounting and VAT of Small Companies in UAE?
IDMS offers tax compliance Accounting Service in UAE. our team of experts render accounting and bookkeeping as per VAT system, since VAT Accounting requires the basic and in-depth understanding of the business environment, our professional accountants and Tax experts have proper understanding of VAT Laws and Rules to set up business accounting properly.
What are the VAT-related responsibilities of businesses?
All businesses in the UAE will need to record their financial transactions and ensure that their accounting and financial records are accurate and up to date. Businesses that meet the annual turnover requirement (as evidenced by their financial records) will be required to register for VAT.
What does a business need to do to prepare for VAT?
A Business will need to make changes to its accounting, bookkeeping and financial-management operations. If you are not keeping your financial records, you will have to start accounting and bookkeeping to ensure compliance with regulations of VAT authorities.
We provide solutions including accounting and bookkeeping, developing your accounting system, providing accounting software solution, preparation and submission of VAT returns to VAT authorities.
How IDMS tax agent(s) help you to prepare for VAT? what are the services offered by IDMS Tax agent
IDMS Accounting Services is a Registered Tax Agent Agency in UAE by the Federal Tax Authority. Under the Tax Agent Services Federal Law No. (7) of 2017 on Tax Procedures - Business entities need a tax agent who would represent them in front of federal tax authority and assist them with tax obligations and laws associated with it.
Our team of charted accountants and tax experts will look after the issues on your tax matters and will present your tax case to FTA for the fulfillment of tax obligation. As now as it is recommended to appoint an expert to handle your all tax matters.
Tax related services offered by IDMS tax agents:
As a tax agent our services includes the following but not limited to:
- VAT Registration Service | VAT Group Registration Services
- Preparing and submitting VAT Returns on behalf of you
- To maintain relevant records related to tax transactions
- Liaison with FTA on your tax related matters
- Represent you in front of FTA if any query or clarification required
- Respond to the FTA on your behalf if Tax Audit | Tax Assessment is conducted
- Arrange or prepare the documents for the FTA during the tax audit | tax assessment
- To submit request for reconsiderations on the decisions made by the FTA
- To proceed with de-registration on your behalf if required
- We provide Tax Advisory Services, VAT Implementation Services, VAT Return Filing, VAT Compliance Review and TAX Consultancy Services and Tax Agent Services in the all Seven Emirates
What are the benefits of appointing IDMS as tax agent?
It is recommended to appoint an expert to handle your all tax matters and look after the issues on your tax matters
Benefits of Tax Agent
By appointing IDMS Accounting Services as your Tax Agent in the UAE you can get below following benefits:
- IDMS as your Tax Agent can represent you in front of the Federal Tax Authority for tax return filling, appeals and tax audit support and help you fulfil your tax obligations towards the Authority.
- Tax agent can assist you in fulfilling all compliance requirements set by FTA
- Our professional team always updating themselves with the latest changes in the law to eliminates the possibility of penalty on noncompliance of the new provisions.
- Better tax planning: Appointing us as your Tax Agent will help the you to identify the factors affecting your taxation compliance and fulfill them with a better tax planning.
- Representation of your Tax records in Arabic language to the concerned authority through our proficient professional, and hence the taxable person need not bother if he doesn’t have records in Arabic.
- Prepare quarterly tax reports taking in to consideration all implication of VAT on your transactions
- Help Clients to register their Companies at Federal Tax Authority Website.
- Drafting appeal letters
- Assistance in requesting interest for late VAT refunds
- Prepare clients Quarterly Tax reports, refund requests in legitimate manner.
- All time support for client’s queries
Define Tax Agency as key contributors to tax system? what role IDMS can play as Tax agency for its clients?
Tax Agency are key contributors to the successful implementation of the tax system in the UAE, tax agents possess advanced knowledge and extensive practical experience in Taxation. The Agent may represent any entity or individual before the Authority, helping them meet their commitments and know their rights.
As FTA approved tax agency our professionals can help businesses achieve tax compliance, manage records, meet standards accurately, avoiding errors in registration or filing tax returns or during any other step of registration.
Our tax agents can assist taxable person to strengthen ties between FTA and taxable person ensuring all taxable person are fully VAT compliant, professionals of IDMS can play vital role in implementing the tax system in the UAE successfully
What is VAT in simple terms?
VAT - Value Added Tax - is a tax levied on sale goods and services. Think of it as a tax on the value you add to products and services. (Difference between what you've paid and what you charge for a product/Service. - Also, on the price difference)
Why you require VAT consultancy
If the impact of VAT on your business is higher, you certainly need a better strategy to minimize it. IDMS experts’ consultants will guide you with reliable strategies to reduce the negative impact of VAT on your business.
Every right business strategy will yield better revenue. The team of IDMS consummate professionals and tax experts who understands your business structure, its financial strengths & weakness, they could plan the implementation of VAT in a profitable way. Our professional consultant will collaborate with your existing accountants and auditors (if any) to come up with the best VAT implementation strategy based on the local law (if any, as the VAT is going to be implemented in other GCC states as well). Better the implementation, best the results
How to object the decisions of the FTA Authority?
If authority has levied any administrative penalty on your business
IDMS tax experts can assist you / guide you to object the decisions of the FTA Authority
As a first step, the person shall request the FTA to reconsider its decision (team IDMS will certainly assist you in lodging request to FTA to reconsider its decision). Such request of re-consideration has to be made within 20 business days from the date the person was notified of the original decision of the FTA, and the FTA will have 20 business days from receipt of such application to provide its revised decision. If the person is not satisfied with the revised decision of the FTA, it will be able to object to the Tax Disputes Resolution Committee which will be set up for these purposes. Objections to the Committee will need to be submitted within 20 business days from the date the person was notified of the FTA’s revised decision, and the person must pay all taxes and penalties subject of objection before objecting to the Committee. The Committee will typically be required to give its decision regarding the objection within 20 business days from its receipt. As a final step, if the person is not satisfied with the decision of the Committee, the person may challenge its decision before the competent court. The appeal must be made within 20 business days from the date of the appellant being notified of the Committee’s decision
Know How to Claim VAT Refunds for Your Business
“You can claim a refund on your VAT”, yes you read it right. IDMS is surely here to assist you in obtaining refund timely. The current VAT law gives you the power of claiming refund too. Again, the refund claim process isn’t that easy. Our expert VAT consultant in UAE will calculate the amount of excess vat paid and fill for the refund. In terms of business, “any return on investment is always a profit”.
About VAT Accounting and its complications
VAT accounting is the most crucial aspect of VAT compliance, VAT accounting emphasizes on recording of all vatable transactions in system complying with FTA’s requirement, VAT Accounting requires the basic and in-depth understanding of the business environment, with the introduction of VAT law these days has become more challenging and competitive. Companies need to have proper understanding of VAT Laws and Rules to set up accounting properly, IDMS can help you to set up Accounting properly in conformity with VAT law.
Comprehensive VAT Accounting provided by IDMS Professionals covers areas like:
- How to Account for VAT
- VAT Report Preparation
- How to Set Up Accounting System and Maintain Accounting Records
- Complete transaction mapping
- Training sessions for relevant department heads
How do we help in VAT Accounting?
IDMS have a team of consummate professionals including FTA approved tax agent(s); our credentials, experience, character and reputation all contribute to our quality standards of service. For years, small businesses, start-ups and established firms have been relying on us to improve their overall business efficiency by hiring us to service their accounting needs. We provide a range of accounting services, from everyday book-keeping and accounts management to sound financial forecasting and advice. IDMS go beyond the number-crunching; we get a full understanding of how a company operates and consider it as a whole, establishing a solid base that allows us to offer sound professional advice to help you to achieve your targets and keep your business on track.
About VAT return filing - who need to file VAT return and How do we know - when to submit the vat returns?
VAT registered Companies are required to file returns periodically. Initially companies will be expected to file returns every quarter or monthly depending on their turnover.
By the end of each filing period team IDMS will help businesses to compile the data on tax paid and tax collected and assist business file the returns following the computation guidelines. A tax liability can accrue as early as the date on which an order advance is received. If no advance is received then the date of delivery or invoice, whichever is earlier will be taken into consideration.
Some examples for adjustments:
- Sales Returns
- Companies will be allowed to reverse the tax paid on Sales returns
- Bad Debts
- How do we know when to submit the VAT return? “Through Federal Tax Authority online portal https://eservices.tax.gov.ae/en-us/login with the user and password which we created at the time of VAT registration. We could see the date of VAT return filing.” (Our professionals will timely remind before your return submission is due so that all the deadlines submission and VAT payment could be met on time)
- The Law will have a provision to account for bad debts and recover the tax paid on such transactions.
Importance of VAT return filing
VAT return filing is an important mechanism for the viability of VAT system, since it works as a medium for reporting the VAT collected and paid to the revenue authorities. VAT return filing is a formal way of reporting the VAT collected and paid during any particular period. VAT return is prepared on the basis of the documents available in the records or ledgers. VAT returns also form a basis for auditing and activities related to enforcement of VAT law.
. Can we claim VAT that we already paid along with Electricity / rent / petrol expenses?
You can claim if the tax invoice dedicated to your Vat-registered company. For petrol, normally a company sign up for fleet features so that they can receive company dedicated invoice
How do we assist in Filing VAT Return?
IDMS VAT experts assist you to prepare and file the VAT return. This is done after finding the correct input tax credit against the total VAT liability by our expert tax consultant. Alongside with advice over planning or better timing on the cash flow.
IDMS consultants are experts in VAT Implementation in the UAE. We back the client by offering training. Moreover, we also advise companies about the impact of VAT over their business. Our VAT implementation teams offer their diligent services all over the UAE.
In terms of the VAT implementation, companies must follow the law with regards to VAT in the UAE. We guide companies about the procedural formalities and the date by which registration should be made, keeping in mind whether the company’s got any exclusion in this regard or not. Alongside, companies should find out if the group registration or standalone is more suitable
WHO CAN REGISTER FOR VAT?
A very simple yet crucial question is ‘who can register for VAT?’, well this solely depends on the turnover / expenses quantum and nature of your business, precisely when the value of taxable supplies and imports exceeds the mandatory threshold limit of AED 375,000 then the business making such supplies and imports should get mandatorily registered.
One must note that a business may also choose to register for VAT voluntarily if the value of taxable supplies and imports or expenses exceeds the amount of AED 1,87,500. The provision for voluntary registration is given to enable startups with low turnovers to register for VAT
WHEN A BUSINESS SHOULD GET REGISTERED FOR VAT?
As the VAT is already implemented in the U.A.E., the businesses that are still not registered and falling under the registration requirements of VAT should get registered now. The businesses making taxable supplies crossing the limit of mandatory registration threshold are liable to get registered. The FTA has already provided the facility of electronic registration for VAT from the third quarter of 2017 on a voluntary basis and on a compulsory basis from the final quarter of 2017.
If you’re a non-resident startup or offshore Company then also you may need to register for VAT
A non-resident business, Startup or Offshore company VAT registration, IDMS VAT Consultant will give you a better idea of the new VAT Law in UAE. Based on his/her guidelines, you will know exactly whether to register your business for VAT or not.
The Online Registration for VAT has already started for certain businesses in UAE. It is mandatory to register VAT before the deadline, (depending on business type & revenue). With the help of IDMS VAT consultant, the registration process would be a cakewalk as our VAT consultant would give you a precise idea of the different documents that are required to register for Vat and guide you through the entire process.
What are the consequences for non-registration for VAT or delayed registration?
Failure to register is an offence and FTA will charge penalty for non-registration (AED 20,000/-), if the registration threshold conditions are met. On all registration applications, FTA is issuing the Tax numbers unless, the application is totally mistaken or FTA require some amendment. Other consequence would be that if we are not registered, we cannot claim any input VAT incurred and eventually the cost of operations will go up.
. Group registration and its significance benefits
To Form VAT Grouping: Reduce Stress on Accounting & Auditing
Businesses that satisfy certain requirements provided by the legislation (such as being under the same ownership and located within the same GCC country) will be able to register as a VAT group.
- For certain businesses, VAT grouping will be a useful tool to simplify accounting for VAT.
- VAT grouping enables you to get a single VAT number and file single VAT returns.
You can hire professional VAT consultants in UAE to create a VAT grouping process, which simplifies the tax auditing