VAT Advisory
Optimize your VAT strategy with Stratify’s expert advisory services. We provide tailored solutions to enhance compliance, minimize liabilities, and maximize your business’s VAT efficiency.
Advisory on VAT
VAT Advisory involves providing professional advice on the VAT implications of various business transactions. This includes assessing how VAT applies to sales, purchases, imports, and exports, as well as advising on structuring transactions to optimize VAT efficiency. The primary goal is to ensure businesses comply with UAE VAT regulations while minimizing the financial impact.
Process of VAT Advisory
Initial Consultation
We start with a detailed consultation to understand your business operations, the nature of your transactions, and your VAT-related concerns. This stage allows us to identify potential areas for VAT optimization or compliance issues.
Transaction Analysis
Our experts analyze your business’s financial transactions in the context of UAE VAT laws. This includes reviewing sales, purchases, inter-company transfers, imports, and exports to determine the applicable VAT treatment.
Strategic Planning
Based on the analysis, we provide customized solutions that are aimed at ensuring compliance while optimizing VAT efficiency. This could involve restructuring certain transactions, advising on VAT-exempt purchases, or maximizing input VAT recovery.
Compliance Review
We review your existing VAT processes to ensure they are fully compliant with the Federal Tax Authority (FTA) requirements. This helps avoid penalties and ensure smooth operations.
Implementation & Monitoring
We assist with implementing the recommended changes in your transaction processes and provide ongoing monitoring to ensure continued compliance with VAT regulations.
Documents Required for VAT Advisory
To provide accurate advisory services, the following documents are typically required
Sales and purchase invoices
Essential for verifying the accuracy of VAT charged on sales and the VAT paid on purchases, helping to identify any discrepancies.
Contracts and agreements for supplies and services
Used to understand the nature of transactions and assess VAT obligations on specific goods and services.
Import and export documentation
Important for analyzing VAT compliance on cross-border transactions and to validate VAT payments or exemptions.
VAT returns and tax invoices
These documents provide insights into the company’s VAT filing history and help identify potential errors or miscalculations.
Financial statements
Essential for understanding the financial health of the business and assessing VAT on overall turnover.
Records of inter-company transactions
Helps in examining VAT treatment for transactions within company affiliates and ensures proper VAT handling.
Prior VAT audit reports or assessments
Useful for identifying past VAT issues and ensuring those are addressed in current practices.
How Stratify Can Help
At Stratify, our VAT experts offer comprehensive support throughout the VAT advisory process. We provide
Customized Solutions
Every business is unique, and so are its transactions. We tailor our advisory services to fit your specific business needs, ensuring that you meet compliance obligations while optimizing VAT efficiencies.
Comprehensive VAT Analysis
Our team performs a thorough review of all your transactions to assess VAT compliance and provide advice on the best way to structure future transactions.
Ongoing Support
VAT laws and regulations can change over time. We offer continuous support to ensure your business remains compliant with any updates in the VAT framework.
Training and Awareness
We can train your team on VAT-related issues, ensuring they have a deep understanding of VAT laws and how to apply them to everyday business transactions.
Representation in VAT Disputes
If your business faces any VAT-related disputes or audits, we provide full representation to ensure your case is presented effectively before the authorities
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Our Other Value Added Tax Services
Our Services
Stratify Corporate services is an independent and international organisation with a specialization in crafting sustainable solutions and strategies
Value Added Tax
Ensure full compliance with UAE’s Value Added Tax regulations through tailored advisory, registration, filing, and VAT health check services.
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Corporate Tax
Navigate UAE’s corporate tax landscape with strategic tax planning, filing, and compliance support to optimize your tax position.
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Excise Tax
We assist businesses in understanding and complying with excise tax regulations, including registration, filing, and audit preparation.
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Accounting Outsourcing
Streamline your financial operations by outsourcing your accounting needs, from bookkeeping to financial reporting, for efficient management.
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Customs
Simplify import-export procedures and ensure compliance with UAE Customs regulations through advisory, registration, and customs reconciliation services.
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Company Formation
Start your business in the UAE with expert guidance on company incorporation, licensing, and compliance with local regulations.
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Audit & Assurance
Our audit and assurance services provide reliable financial insights, ensuring transparency and compliance with regulatory requirements.
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Economic Substance
Anti-Money Laundering
Protect your business by staying compliant with UAE’s AML regulations, with risk assessments, monitoring, and reporting solutions.
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Frequently Asked Questions
What types of transactions are subject to VAT in the UAE?
All goods and services supplied within the UAE, except those specifically exempt or zero-rated, are subject to VAT at the standard rate of 5%. This includes domestic sales, imports, and some exports.
Can I recover VAT on business expenses?
Yes, businesses can generally recover input VAT on goods and services purchased, provided they meet certain conditions set by the FTA, such as valid tax invoices and legitimate business use.
What happens if I do not comply with VAT regulations?
Failure to comply with VAT regulations may result in penalties, fines, and in severe cases, criminal charges. This could also lead to additional VAT liabilities and reputational damage to your business.
How does VAT impact international transactions?
For international transactions, the VAT treatment varies based on whether the goods or services are being exported or imported. Exports are generally zero-rated, while imports may be subject to VAT at the point of entry.
Can Stratify help with VAT audits?
Yes, we provide comprehensive support during VAT audits, ensuring all your transactions and documents are in compliance with the regulations. Our team also handles communication with the FTA on your behalf.
What is the benefit of VAT Transaction Advisory?
VAT transaction advisory helps businesses avoid costly errors, optimize VAT recovery, and stay compliant with the UAE VAT laws, thereby minimizing financial risks and potential penalties.
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Contact Stratify for VAT Advisory Services
At Stratify, we specialize in providing expert VAT transaction advisory services tailored to your business needs. Contact us today for a consultation and let us help you navigate the complexities of VAT in the UAE.
