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What is VAT?
 
Value Added Tax (VAT) is an indirect tax levied on the supply of goods and services that can add between 5 - 25% to your organisation’s foreign business expenses.  It is levied at every stage in the business cycle, itemised on the invoice and paid to the government in each state with the cost ultimately borne by the end consumer.  VAT was established to encourage cross-border trade from one county to another, and was designed to be neutral to businesses if  they go through the effort recover their foreign VAT. 
Applicable VAT rates vary from country to country and the tax is recognised under different names, including IVA (Italy), GST (Canada, Australia), MWST (Germany, Austria), TVA (France, Belgium) and MOMS (Scandinavia). 
 
Why Can Foreign VAT Be Recovered?
 
In order to encourage international trade, the European Union introduced legislation in the 1990s enabling businesses to claim back VAT paid on expenses incurred while doing business in member states. VAT is refunded from the EU under the 8th Directive, which enables EU companies to reclaim from any member state, and the 13th Directive, which allows businesses established outside the 27-member bloc to claim. A number of key non-EU territories, including the US, Japan, Canada and South Korea, also refund VAT thanks to reciprocity agreements. 
 
What is Eligible for VAT Recovery?
 
Alliott Hadi Shahid  can secure foreign VAT refunds from 41 countries on a range of travel and entertainment (T&E) expenses including: 
·         Trade fair and conference costs,
·         Meals, accommodation and business entertainment,
·         Travel and transport costs,
·         Advertising and promotional costs,
·         Professional services,
·         And many additional expenses.

AHS can also maximise your refund potential by identifying a range of additional expenses possibly eligible for VAT reclaim including: corporate travel, import VAT refunds, warranty services, inter-company expenses, and haulage and transport costs. .


VAT is a complex tax which affects most businesses and organizations. Whether it’s completing and submitting monthly/quarterly VAT returns or considering the implications of specific transactions, getting it wrong can be a costly mistake. Our tax expert knows enough about your business to anticipate risks and opportunities.
  • REGISTRATION

Registration for the VAT online must be taken seriously.  Accurate data and information are the basic requirements.  Incorrect information must be corrected within twenty (20) days and incomplete information submitted may delay the registration process.  All businesses failing to apply for registration within the timeframe specified by the Tax Law may result in both Tax Assessments and Administrative Penalties Assessment (Federal Law No. 7 of 2017, Tax Procedure Law, Article 24, Section 1-a). 

In order to avoid the inaccuracies of the information and delay in registrations, we will conduct a quick glance of the company’s industry, legal documents and financials, audited financial statements and internally generated reports and other information.  

Our scope of works includes:

  • Assisting with VAT registration
  • Gatherinng of Accurate requirements and information
  • Making sure that your data are accurately entered at the time of registrations

  • MONTHLY OR QUARTERLY RETURNS

We offer a comprehensive VAT service, which gives you a peace of mind.  Our experienced VAT professionals will look after your VAT affairs and transactions. As your authorized VAT agent, we will deal with your VAT affairs on your behalf, reducing the burden on your business, while allowing the key officers and business owners in full control.

Our VAT agent service can be particularly beneficial for the branch of  foreign entities that would otherwise find it difficult dealing directly with the UAE VAT authorities, those companies who don’t have an accountant or otherwise needed to support their existing Accounting Department.

Our scope of work are as follows:

  • Preparing/reviewing your VAT returns
  • Preparation of your statistical declarations
  • We will also prepare a management report if there are noted exceptions in order to improve your controls and compliance with the laws and regulations.

  • MONTHLY OR QUARTERLY VALIDITY CHECKS AND PLANNING

We will provide you with the assurance that your net VAT positions are accurate and within the bounds of the law. Businesses are given twenty-eight (28) days to file their returns at the end of the tax period.  Given a limited time, complex organizations may find it very difficult to submit accurate returns, especially those with a huge volume of transactions and those who are registered as a VAT Group.   

Periodic checking of your internal controls and compliance level with VAT provisions can be very beneficial in many ways.  This will ensure that you do not receive notification of any unexpected tax liabilities from VAT Authorities and also to keep your business in compliance with the laws and regulations. We can provide these periodic checks for you, ensuring that your controls and level of compliance stay at their most efficient.

Whichever solution is most approriate for your business or organizations, we will:

  • Quickly identify any areas for concerns or weakness in your accounting controls and systems;
  • Identify transactions which may not have been properly accounted for or incorrectly recorded
  • Identify potential ways to reduce your overall VAT liability, in a legal manner
  • Recommend appropriate remedial actions to ensure that your processes, procedures and work force are fully aware of the VAT implications to all corners of your business or organization
  • We will also prepare a management report if there are noted exceptions in order to improbe your controls and complaince with the laws and regulations.

We also provide comprehensive VAT planning advice regarding capital scheme transactions, reverse charge mechanism and other as the potential costs and saving of the VAT element of these transactions can be significant

Our scope of works includes:

  • To help your reduce the risk of paying incorrect tax and identify leakages
  • Assurance that your VAT liabilities are paid within the time and through teh correct mechanism;
  • Help to manage your cash flow
  • Ensure that you comply with your statutory and leagl obligations
  • Thorough investigation of your VAT risks and potential weaknesses within your accounting system

  • SECONDMENTS

Secondments will prove to be useful for those organization who lost their employees that handle the VAT affairs within the organization either by a long vacation leave or permanently.  We will send our experienced VAT specialist to handle your accounting and tax returns, on your behalf.