A Few Ways To Help You Tackle The Introduction Of VAT Better
As of January 2018, the UAE implemented VAT across all its member nations, with a particular focus on businesses and other ventures also launched with the intent of business. This includes companies and organizations drawing in an income of AED 375,000 annually and rented properties for commercial purposes as well. Whilst the rules governing different scales of businesses are different and need to be handled very sensitively. Free zones however, won’t be governed by the same laws, and in some cases won’t qualify for VAT either. That said, as a well-established and experienced tax consultant in Dubai, we can help you identify key ways in which you can adapt to this change better.
The current rate of VAT in the UAE is 5%, and all those eligible for VAT payments will need to adhere to the newly stipulated rules and regulations. This includes maintaining accurate financial record via extensive bookkeeping services. We at Sarah Ferguson Tax Consultancy can help you with every aspect of the taxation process, and in the meanwhile, let’s take a look at the below:
HAVE A CONSULTATION
Though VAT is just a few months old in the UAE, it has been around in around 180 countries globally. So though you may have some inclination of it or even a basic idea of how it works, you would understand some terminology and so on. However, this isn’t enough to deduce how it can be put to work in your company. How will it affect you specifically? How much are you liable to pay? Are your records in order? There are so many questions to ask yourself and us, which is why our first piece of advice would be to come in for an initial consultation at our VAT registration company Dubai.
The reasons as to why you need to be consistent with your bookkeeping are twofold: one, you want to be able to apply for your VAT and have the necessary documentation ready without any hassle and two, you want to avoid paying heft fines that have been set in place for failure to maintain accurate records. This is because authorities want to ensure no companies are avoiding the payment of VAT by not declaring their full finances.
UNDERSTAND WHERE YOU STAND
As a business, you need to be fully aware at all times, and that includes knowing how much you can claim back on VAT incurred on business-related goods/services. Additionally, you must charge VAT on all taxable products and services, and keep a stringent control on these changes as well. What is the role you have to play? How can we help you meet your goals and objectives, in turn supporting the development of your company?