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VAT- What is the purpose of VAT (value-added tax)?

A VAT (value-added Tax) is a consumption tax imposed on an item continuously at every point of sale at which worth has been included.

This article discusses and explains the VAT; what is the purpose of VAT (value-added-tax)?

Purpose of VAT (value-added Tax)

VAT is a continuous consumption tax imposed on a product at every point of sale at which worth has been added. For instance, if a product costs $100 and has a 15% VAT, the consumer pays $115 to the seller. The merchant keeps $100 and remits $15 to the government.

That is, the tax obligation is included when a resource’s producer markets a product to a factory, when the factory offers the completed product to a wholesaler, when the dealer deals it to a seller, and, finally, when the retailer sells it to the customer who will certainly use it.

A value-added tax is paid at every stage of an item’s manufacturing, from the sale of natural products to its final purchase by a consumer.

The Value-Added Tax aims to create tax incomes for the federal government. The state determines the quantity of value-added Tax as a percentage of the rate of the goods or services provided. As its name suggests, the value-added Tax is designed to tax obligation just the value included by favor and the benefits and goods it can buy from the marketplace.

Value-added ally for the shared service and framework supplied in a particular region by a state and moneyed by its taxpayers that were utilized in the provision of that service or product. Not all areas need VAT to be billed, and exports are commonly exempt. Value-Added Tax is imposed in greater than 140 countries worldwide, making it the world’s most frequently utilized Tax.

The GCC states (Gulf Teamwork Council) concurred “in the concept” to enforce the GCC arrangement on worth included tax obligation (VAT) in the region. This will assist the area in decreasing its reliance on oil and various other hydrocarbon products as a source of income. All GCC nations concur that the VAT 2019, however, will undoubtedly be introduced before January 1 in all countries. The UAE has likely chosen to apply VAT on January 1, 2018.

Claimed advantages of the VAT are that it would certainly:

  1. Be based upon intake, as well as thus give a secure earnings base;
  2. Be “neutral” since it would be imposed on all kinds of services;
  3. Give more powerful incentives for businesses to regulate expenses;
  4. Motivate, or at least not inhibit, savings;
  5. Have the potential for increasingly large amounts of revenue at a reduced tax price;

Tax obligation can be specified as a charge the government charges on items, solutions, revenue, and various other transactions to finance civil services and federal government expenses.

There are two major tax categories:

  1. A tax obligation is paid directly to the federal government by the taxpayer.
  2. An indirect tax is paid to the government by an intermediary that accumulates the tax obligation from the taxpayer on behalf of the federal government.

About VAT course certification

Value Added Tax provides training on goods and services, SAP, inter-company sales, Third-party drop shipment, stock transfer, purchases, vat certification, etc.

Value-added tax implementation in the UAE needs careful planning. Zabeel institute offers VAT training and courses in Dubai and throughout the UAE. Our services include VAT Advisory and value-added tax optimization in UAE.

This Certificate provides a licensing method, helping collect taxes on registered businesses.

Value-added tax training courses give a comprehensive understanding of the value-added tax system, covering the fundamental concepts of value-added Tax, guidelines, and administration, and assistance in analyzing and consistently applying the GCC VAT regulation within the UAE.

Our team of qualified tax advisors, finance experts, and tax accountants will ensure timely and cost-effective value-added tax training in UAE for SMEs.

To learn more about VAT, click here.

Significance of VAT Certification in 2023

VAT Training and Certification Course are one of the most demanded certification courses in UAE.

In this VAT course, individuals working with VAT Training at an operational level on a business’s procurement or accounts payable side will gain a clear understanding of input VAT and its recoverability. Delegates will have the opportunity to put into practice what they have learned using a range of case-study scenarios and practical examples.

The Value Added Tax -VAT certification program is suitable for those who work in sales and purchasing, accounts, Tax department, payable and receivable accounts, account managers, finance managers, CEO, Entrepreneurs, etc.

Advantages of VAT certification:

  1. It decreases the likelihood of errors via improved skills, internal communications, and the best examples for self-learning.
  2. It builds a basis for joint discussion as well as understanding.
  3. It may affect rate savings as well as better danger organization.
  4. It supplies an audio structure for testing whether an ERP system was correctly applied.
  5. Specialized assistance by specialist VAT specialists.
  6. Tailor-made training and familiarity growth can be straightaway applied in uncomplicated techniques.


Training Facility in UAE: Dubai, Abu Dhabi, Sharjah.

If you are looking for VAT training in Dubai, Abudhabi, and Sharjah in UAE, you are reading the right article. Zabeel Institute has designed the best VAT preparation course.

Value Added Tax training offered by Zabeel Institute stands out from other activities in the market.

Zabeel Institute is well known for delivering several successful batches of value-added Tax every year. Zabeel ensures to help all students with all sorts of assistance for their brilliant performance in the exam.

Zabeel Institute, established in 1988, is a leading Educational and Training Institute for executives in Dubai. Zabeel Institute is by the KHDA and Ministry of Education UAE. Zabeel offers training programs to professionals from various industries like Airlines, Travel & Tourism, Engineering, Construction, Accounts & Finance, Information Technology, Logistics, Languages, and Management. Zabeel’s career-specific courses are imparted through interactive teaching techniques, state-of-the-art technology, and an experienced and highly qualified faculty.

  • More than 32 Years of Experience in training Professional Executives
  • Achiever of many QUALITY AWARDS for training from 1988 till date
  • Qualified & Certified Trainers
  • Sophisticated lab with high-end machines and licensed software
  • Certificates attested by the Ministry of Education, UAE
  • Vast resource materials for reference and course materials
  • Free online support for further assistance
  • Free follow-up orientation seminars & workshops
  • Integrated Training & Career Development Plan

Please visit the KHDA website to learn more about Zabeel:



Zabeel Institute helps you evaluate the VAT certification partner based on your education and experience and will further guide you to the certification.

To know more about Value Added Tax training certification cost in UAE, fee, exam cost, exam fees, certification, general certification cost, and more, please Contact Zabeel Institute!

Zabeel offers VAT in Dubai and Sharjah in the UAE

For further information, please contact: –

Phone: 00971 4 3974905

WhatsApp: 00971505258501

Email: mail@zabeelinstitue.ae

Website: www.zabeelinstitute.ae

Facebook: https://www.facebook.com/zabeel.international/

LinkedIn: https://www.linkedin.com/school/5954667/

Twitter: https://twitter.com/zabeel_intl

Instagram: https://www.instagram.com/zabeel_international/

To learn more about the VAT certification, visit



VAT brief for Value-added Tax is a tax obligation billed on the north contributed to products and services. In lots of nations, VAT is known as GST.

Services can only charge the Value-added Tax if they are VAT-registered. Any service that is signed up for value-added Tax must bill VAT on any taxable sales.

Are you ready to explore the new world of VAT? In addition, What is the purpose of VAT (value-added-tax)?

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