A value added certificate is a certificate that is used to get the benefit of duty exemption in the AGCC/Arab league countries by exporting the goods, which in turn improves the profit margins of AGCC/Arab League based customers & increases there bottom line. The Value Added Certificate is calculated by aggregating the total of local inputs plus the required percentage of raw material cost which should be at least 40 % of the annual turnover.
The Value addition certificate is beneficial to factories with industrial production licenses because the system determines the added value (percentage of the national component in the final product) based on the company's financial statements, and the percentage of the national component in the total production costs must be greater than 40% for the factory to register in the system to avail the duty exemption for their customers.
Having a value added certificate further helps the seller in U.A.E to export their goods to GCC countries & let their customers be exempt from paying any import taxes & customs duty.
If the client’s local input and raw material cost in comparison to the sales cross this mark of 40 % then the client’s customers in GCC nations can benefit from an exemption of custom duties levied & import taxes payable.
If the client’s local input and raw material cost in comparison to the sales cross this mark of 40 % then the client’s customers in GCC nations can benefit from an exemption of custom duties levied & import taxes payable.
We help our clients in obtaining the Value added certificate as well as assist & provide consultation from inception to the conclusion of the process with regards to the same.