In every country, policies change from time to time. So do VAT rates on goods and services. Changes in the VAT policies allow for more economic scope by including an extra source of revenue, due to the aftermath of the oil crisis. This income can be used for better public services in the country. It also serves to reduce the government’s dependence on oil and other revenue sources.
So what is VAT ?
Fig 1. What is VAT – Reasons why you need VAT Consultants, VAT Registration and VAT E-filing in Dubai
Value Added Tax is a tax that is imposed on the expenditure or use of goods and services during the sale of the same. It is charged on the price of a product or service at each stage of production, distribution or sale to the end consumer. When goods and services pass through supply chains, their value increases. VAT taxes the value that is added at each stage during the process of production. It is usually included in the price advertised. It is a vital source of income for the government.
VAT registered businesses can add VAT to their sales invoices and are then able to reclaim any VAT included in the products that they bought. If you do not get VAT Registration in Dubai, you must still pay the VAT on your purchases made, but you will be unable to reclaim it. Being VAT registered gives your business profile a certain polish, along with making it capable of collecting VAT returns.
Under VAT tax rules, the expense bearers will eventually be the end consumer. In order to aid the government, companies are obliged to collect and account for the tax. A taxable supply refers to a distribution of goods or services by a business in the UAE, which is then taxed at a rate of either 5% or 0%.
Some companies choose to register for VAT and pay tax even if they do not have to. This is because the benefits in certain situations outweigh the disadvantages. This depends on individual company to company.
What do VAT Consultants in Dubai do for you ?
Fig 2. Expand Globally – Reasons why you need VAT Consultants, VAT Registration and VAT E-filing in Dubai
In the UAE, you only need to register for VAT if your business has more than AED 350,000 each year in taxable imports and supplies. This depends on if you either exceeded this limit in the 12 months before or if you think you might exceed the limit in the next 30 days. If your business’ taxable supplies and imports come under this limit but exceed AED 187,500, you can register for VAT even though it is not a requirement.
Decisions such as knowing when to register are complicated. If you register later than you are supposed to, you will be subject to penalties. On the other hand, voluntary registration can introduce advantages such as tax refunds. A business will receive a refund from the government on tax that it has paid to its suppliers. However, registration can also mean unnecessary hassles and bearing extra costs. Thus, seeking VAT Consultants in Dubai will help in understanding the various complications of VAT registration.
Fig 3. Accuracy – Reasons why you need VAT Consultants, VAT Registration and VAT E-filing in Dubai
Regulated tax agents act as guides in performing registrations in the UAE, or filing VAT returns with the authorities. They are able to check all related formalities and details concerned with your business and personal information. It is important to remember that all VAT consultants are required to have the necessary qualifications that have been put in place by the authorities such as the FTA. This is a reassurance to all clients, that when you hire a certified tax agent, you will get the assistance of an expert in all matters related to taxes in the country. Therefore, one can be guaranteed that you can not only benefit from a tax consultant’s expertise, while also saving your time and your business from the risk of penalties or violations.
Fig 4. On-Time File Returns – Reasons why you need VAT Consultants, VAT Registration and VAT E-filing in Dubai
Hiring a VAT consultant is helpful especially if you need to ensure that it is done properly. If you are unable to deal with complicated procedures such as VAT registration or e-filing, a VAT consultant will handle the task with the utmost dedication. They will take care of all formalities associated with the process for clients.
Why is Dubai the Perfect Location for VAT Registration ?
Finding consultancy services that perform VAT E-filling in Dubai is a good solution for those within the region as well as others. The city is considered an upcoming business location. Dubai is a great location for business consultancy services among a variety of activities. You should consider hiring a VAT consultant, more especially if you are running a business in Dubai. The city is acknowledged as an upcoming prime business location.
Your business’ dedicated VAT Consultants in Dubai will assist you in understanding all that you need to know about the latest policies and regulations related to VAT. They will advise you on the changes that should be made to your existing business. VAT consultants are experts that can be your representative for all tax-related matters.
Continuous reforms are being made in Dubai and the country as a whole. As VAT was introduced quite recently, businesses in the region are still looking for the best way to tackle this form of taxation. A lot of companies do not have the expertise to deal with these changing regulations. Therefore, VAT consultants in Dubai are a quick and available solution to adapt accordingly.
VAT consultants provide clients with useful advice and key insight in all aspects of VAT and tax matters. Having your business’ VAT registration in order is even more important if you run an international business.
Looking after the formalities related to VAT processes such as registration and returns can be time-consuming. Filing papers can take hours for an individual process. This can be prolonged if you do not have the required knowledge about the procedures or taxation. It is much easier for business owners to spend their time on more valuable areas than trying to learn how to deal with VAT processes. Thus hiring VAT consultants saves time and trouble for business owners, allowing them to focus on expansion and competition.
Fig 5. Superior Knowledge – Reasons why you need VAT Consultants, VAT Registration and VAT E-filing in Dubai
Another reason to hire consultants for VAT E-filing in Dubai is if you plan on starting a small or large business in the city. They will help you by getting your business registered according to Dubai law. The city’s markets are not easy to understand, therefore you should hire a reliable VAT consultant.
All things considered, getting a business VAT registered according to the stipulated regulations is important and must be done if required. The procedure may offer some disadvantages, but ultimately the pros outweigh the cons. Seeking the assistance of VAT consultants in Dubai, as seen, will prove beneficial all for a company’s well-being and success.