Among many countries where VAT has already been implemented, UAE is now one where it’s been adopted by the Government from January 01, 2018. If you’re one who is scared by seeing the initial surge in costs related to implementing and managing the confusing formalities involved in VAT, just stay peaceful to experience its profusion benefits overtime. Once VAT system is in its place, especially SEMs with limited resources are sure to operate more efficiently opposed to the outdated systems.
Nonetheless, like the majority, if you’re not sure of how to advance for needed VAT registration, whether your business comes under VAT or not, what would be its impact on your business, it is highly recommended to hire an expert VAT consultancy Dubai. The professionals will guide you all through the way with basic mapping to make sure you’re meeting the most essential tax obligations, help find lawfully strategic to use VAT more beneficially for your business apart from getting consultancy, registration and training.
How VAT Consultancy Can Benefit You?
Understanding Your VAT obligations
At the outset, it’s vital for you to know whether you’re obligated to VAT registration; and if so, what should be the tax structure. As per the guidelines, if your taxable sales volume has exceeded AED 375, 000 (US$ 100,000 approx) in the preceding 12 months or expected to cross the benchmark within next 30 days, you must have VAT registration. Equally, if you’re a startup group and your expense to begin with is likely to cross AED 187,500, the rule applies to you irrespective of the location where you are operational in GCC.
The second confusing factor where you need advisory of VAT consultancy in Dubai is whether the products or services you deal in needs you to charge the standard 5% VAT or it’s under 0% or just exempted to get registration. The issue is much puzzling given that, under the new tax procedure, plenty of essential items are taken under 0%, or given exemption, while for all other services and merchandise, 5% is applicable. Yes, there is a difference between 0% and exempted, which should be noted carefully. Being a supplier of 0% rated items; you can get back VAT, which you’ve already paid as input tax. However, if exempted, you don’t require registering for VAT and cannot reclaim taxes on whatever you paid on the inputs.
Registering and Assessing Impact of VAT
Once evaluated, your VAT consultancy firm in Dubai will do the needful for registering your company at the earliest. The professional tax practitioners will envision how adoption of VAT is likely to impact on your business and what would be its possible extent. Accordingly, they will guide your team to follow legalized strategies to lessen VAT’s negative impact (if any) on your business activities.
Implementing VAT Beneficially
As per the version of professional VAT consultancy firm in Dubai that everyone who are scared of VAT today will be benefited with higher revenue, provided the appropriate steps are being followed. It needs expert understanding of one’s business infrastructure, functions, financial standing, and limitations to effectively make out the profitable ways to deploying VAT for the client. Throughout the way, your consultancy firm will help in aligning superior business practices backed by VAT regulations to bring your business the best benefits.
Post Execution and Refund of VAT
Right from selection of appropriate software packages to helping you understand the methods of transactions with compliance to VAT regulations and enabling you to get back the VAT refunds would be carried out by your VAT consultancy in Dubai.
VAT Accounting, Return, and Training
Accurate documentation and recording of various transactions, input/output VAT, cost, revenue etc in the books of accounts conforming with VAT rules and regulations is vital to avoid unwanted dispute, governmental audit and penalty. Once you become VAT registered, the authorities’ needs you to appropriate recording of general ledgers, purchase/sales day book, invoices received and issues or debit/credit notes; maintaining which is just impossible without the support of VAT consultancy in Dubai. Apart from providing needed training to departmental heads on VAT procedures, they help you stay peaceful with up-to-date filing of VAT returns too.