Dubai has the most Business-friendly policies, world-class infrastructure, smart transportation, best lifestyle, diversity and culture, the central hub of the country, many free zones, many job opportunities and most importantly, UAE has emerged as numerous advantages for the United Arab Emirates. As a businessman, you don’t need to worry about VAT in Dubai or find a professional VAT consultant until January 1, 2018, when the country first introduced a 5% annual Value Added Tax (VAT) for up to 375,000 dirhams of working hours per year. This article will delve into the role of VAT Consultancy Services in Dubai to know the right time to register for VAT for your business, but you also understand the advantages of VAT registration in the UAE.
Let’s find out why your business needs the best VAT consultant in the UAE.
A Quick Overview
The tax imposed on the consumption or use of goods and services offered for sale is called VAT and is currently 5% across the UAE. As a business owner, you can easily decide whether you need to register for VAT from the VAT registration standards provided by the government; These are:
- If the annual taxable goods and services of the business are more than AED 375,000. This is a must.
- Businesses can register for VAT if their annual turnover and turnover exceeds AED 187,500.
- Businesses are responsible for paying all taxes collected from customers to the government.
- They can also request tax refunds from the government to importers. Foreign businesses can claim back VAT incurred when visiting the UAE. You can check UAE laws and regulations (VAT and excise tax) on the Federal Tax Office website.
Who is a VAT consultant? What services do they provide?
The thing you need to know most when doing business; Failure to comply with VAT regulations in the UAE will result in heavy penalties. Your VAT consultant can help you manage VAT compliance. As well as helping businesses register with the UAE VAT system, they also manage their VAT obligations and alert them to VAT implications for specific businesses.
Depending on the business, services provided by UAE VAT consultants generally include:
- VAT Advisory Services
- VAT Compliance and Management
- VAT Consulting Conversation
- VAT Refunds
- VAT Registration and VAT Withdrawal
- VAT Training
- Assist with FTA payment procedures
- Preparation of revenue information for submission to FTA
- Internal VAT audit
- Analysis of purchase invoices
- Analysis of sales invoices and compliance with FTA regulations
- Reduction of VAT liabilities
- Identification of risks and appropriate solutions
- Identification of tax preparation sources
- Bookkeeping and accounting with VAT decisions
Benefit of Hiring a VAT Consultancy in Dubai
Whether in the UAE or anywhere in the world, laws and regulations are constantly changing and it is important for businesses to stay up to date with the latest developments without having to deal with the consequences of non-compliance. . to them. Additionally, you do not want to make mistakes in your VAT calculation, VAT declaration and VAT payment processes.
Working with complex VAT is easier when you have an experienced VAT consultant on your side. Moreover, you do not need to deal with complex formulas, mathematics and calculations.
Here are other reasons why you should consider contacting one of the best VAT consultants in the UAE:
- Professional Expertise
VAT experts are knowledgeable about VAT rules and regulations and can advise taxpayers on various VAT rates and correct payments. to count. The most competent VAT consultants bring their knowledge of VAT procedures, rules and regulations to the table.
- Avoid any Possibility of mistake
VAT consultants will go the extra mile to ensure all VAT submissions (returns or payments) are correct. Since they are experts in their field and have many years of work in the field, they can avoid mistakes in VAT registration, returns and other tasks.
- Save Time
Analysis, evaluation and risk assessment of the VAT company is a difficult and time-consuming task. Hiring a competent and qualified VAT professional can save you a lot of valuable time.
- Identify any Risk
Tax risk management is also one of the duties of VAT experts. They can manage many risks in the business. A VAT expert can help you identify and mitigate VAT risks such as inappropriate tax rates and VAT non-compliance.
- Tax Preparation
Filing a VAT return is not the last step of the tax audit as many people think of following the tax season, but it is the first step of the VAT audit step. Businesses should review their VAT returns and ensure that all taxes selected by the company are correct, supporting documentation is provided, all required documents are included in the system, and the company prepares VAT returns and accounting records for future VAT audits.
- Financial Analysis
They improve the financial process: Your in-house finance team ignores financial analysis, calculations and measurements. It is therefore advisable to always seek advice from a professional VAT advisor for financial advice.
These are just some of the advantages hiring a VAT agent or specialist can offer. In many cases, employing a VAT consultant from a reputed business set-up company in Dubai, UAE can prove significantly beneficial to your organization.
Where can I get the best VAT Consultancy in the UAE?
Reach out to ebs chartered Accountants!
ebs chartered Accountants are Value Added Tax consultants in Dubai are happy to assist and guide you through all the aspects of VAT, from registration and deregistration to assisting in filing for returns and payment to auditing and advising to reduce liabilities to addressing any compliance issues and providing VAT training.
With our VAT specialist working with you, you will not just be able to avoid penalties for non-compliance, but also reduce unnecessary expenditure within the company, essentially streamlining it.
They also assist your company’s tax accountants and finance department to apprehend the various aspects of VAT that can impact your business in the future by optimizing your resources to achieve profit maximization which is one of the objectives of your business.
FAQS
What is VAT consultancy and how can it benefit my businesses?
VAT consultancy involves expert advice and guidance on Value Added Tax (VAT) regulations and compliance. By ensuring that your business is VAT compliant and optimizing your VAT processes, VAT consultancy can help reduce tax liabilities, improve cash flow, and ultimately enhance your bottom line.
How can VAT consultancy help in identifying cost-saving opportunities?
VAT consultants have in-depth knowledge of VAT laws and regulations, allowing them to identify potential cost-saving opportunities such as reclaiming VAT on eligible expenses, optimizing VAT recovery processes, and minimizing VAT liabilities through strategic planning.
Will VAT consultancy services help in reducing the risk of non-compliance penalties?
Yes, VAT consultancy services can significantly reduce the risk of non-compliance penalties by ensuring that your business adheres to VAT regulations and filing requirements. By staying compliant, you can avoid costly penalties and legal issues that could negatively impact your bottom line.
How can VAT consultancy services assist in streamlining VAT processes?
VAT consultants can help streamline your VAT processes by implementing efficient systems and procedures for VAT compliance, reporting, and documentation. This can lead to improved accuracy, reduced administrative burden, and enhanced overall efficiency in managing your VAT obligations.