VAT stands for value-added tax, a general consumption tax that is imposed on all the stages of production and distribution. VAT is adopted by more than 160 countries in the world and the United Arab Emirates is one of them. In 2018, the regulatory authorities officially announced that each taxable business in UAE has to do VAT compliance. As a result, companies face a lot of trouble in managing their value-added tax as per Federal Tax Authority standards. Because they don’t have VAT consultants who will help them with VAT registration, submission, VAT return filing, and many other activities. If any business fails in VAT compliance, the authorities charge them in the form of fines, penalties, and license suspension.
Thus, it is advisable to choose the right VAT consultants in Dubai and avoid potential errors. You just need to put a little effort into reading this guideline to find efficient VAT consultancy Services in Dubai for your business.
What are the Reasons that you need VAT Consultancy Services in UAE?
VAT is a relatively new idea in UAE, and business owners did not know how to handle VAT compliance tasks on their own. Also, they are not aware of the latest updates of FTA for value-added tax in Abu Dhabi. Consequently, they require an expert opinion that professionally support the companies in calculating VAT. Here we have the following essential reasons why you need VAT advisory Services in Dubai
- Error-free VAT Compliance
- Time and Cost-effective
- Implement Latest FTA Regulations
- Accurately Maintain VAT Records
- Minimize the Risk of Penalties
- Technical Support for Businesses
- Provide Training to Employees
- Hands-on Expert Knowledge of VAT
- Guarantees Success in VAT Compliance
What are VAT Penalties in Dubai?
Fines and penalties put an unnecessary burden on your company. The following are the general penalties under UAE VAT law. AED 10,000 is a fine for not keeping accurate records and information; after two instances, the penalty is AED 50,000. AED 20,000 is the penalty for not registering on time, designating a legal representative, and turning in accounts when requested by the government. Any change that is made without notifying the FTA in the UAE carries a penalty of AED 5,000; the penalty increases to AED 15,000 the second time.
Best Ways To Choose Best VAT Consultants in Dubai
At this point, it is crystal clear that VAT consultancy in Dubai is not an option, but a requirement to comply with relevant regulations for your business. The foremost step is to search for an expert VAT advisory that best fits your business objective. However, we discuss key elements for selecting the best VAT consultancy in Dubai, such as:
Qualified, Certified, and Experienced VAT Advisory
In the first stage, you should consider the qualification of VAT consultants in UAE, which must be ACCA, CA, CPA, ICAEW, and other certified Chartered Accountants in UAE. The team must have top-notch expertise, skill, and relevant experience in the field of VAT advisory and other tax servicces in Sharjah.
Also, you may acquire which major industries the advisory worked for VAT compliance. Mostly, this type of information is mentioned on the official website of the company. If not, the business owner can directly ask about it and select the finest service. Due to their expertise in VAT, they can also assist you with implementing VAT solutions based on all the latest updates from the FTA.
Offers A Wide Range of VAT Services
VAT compliance is a combination of extensive services which includes preparation and submission of VAT invoicing, VAT registration, VAT return filing, VAT refund submission, voluntary disclosure, VAT de-registration, and VAT audit services. When selecting a VAT consultancy firm in Dubai, they should offer this wide range of services.
In the future, when companies have to present their documents to the FTA, these precautionary measures will help you avoid troubles during FTA Tax Inspections. Furthermore, these professional VAT service providers will facilitate the FTA on your behalf.
A Reputable and Licensed Firm
Choosing a firm for the best VAT consultancy in Dubai is very critical because regulators are so strict in imposing penalties in case of violation of the tax laws. That’s why companies always look forward to a reputable and licensed accounting firm in the United Arab Emirates. It assists businesses in handling VAT compliance as per the organization’s financial goals and they promise top-notch services to maintain their goodwill in the market.
Getting VAT services from an unlicensed firm is illegitimate in the UAE, also it negatively impacts your business and its stakeholders. So, it’s essential to assure firm licenses before assigning any complex project.
VAT Compliance Align with FTA Laws
The Federal Tax Authority (FTA) took charge in 2016 for managing all federal taxes and applicable fines or penalties, as well as implementing tax-related procedures in the UAE. Additionally, FTA describes a complete guideline and conditions for completing VAT compliance that is mandatory for each taxable business in Dubai.
If a business fails to apply VAT needs as per FTA regulations, it has to endure a hefty amount of fines. It is advisable to select a VAT consultancy firm in Dubai, which safeguards your business from VAT avoidance. Aligning your company with FTA laws is the only possible solution to avoid such invasions which are intended to cause fines.
Provides Cost-Efficient VAT Solutions
Many business owners are confused at this stage, and what would be the appropriate amount for VAT consultants in UAE? Is it just an expense on our cash flow with no paybacks? Why should we outsource a VAT consultant even if we are paying taxes as well? Take a break, we will help you to clear all your doubts. Before selecting a service you have the right to discuss your budget and the facilities with consultants.
Always select a cost-efficient VAT solution for your business, which means a top-notch quality service with a fair package. You may do a quick competitor analysis to analyze which one offers the best VAT facilities at a minimum price. In this way, VAT consultants save your money and effort as well.
VAT Compliance with BestaxCA!
BestaxCA is a licensed accounting and financial advising company in Dubai that offers residents and non-residents of the UAE special VAT services. The team of professionals helps you comply with tax rules and regulations by guiding you through the VAT compliance procedure. BestaxCA is capable of offering bookkeeping and accounting services in the UAE that comply with VAT regulations. When offering VAT accounting services in the United Arab Emirates, our VAT specialists will concentrate on the following topics. As an example:
- Value-added tax planning
- Review of VAT-related records and transactions
- Updating VAT records to avoid penalties
- Introducing new VAT rules and regulations
- Registering a business to ensure VAT compliance
- Install accounting software
- Advice on filing VAT returns
- Prepare balance sheet and accounting records
- Suggest a VAT solution within the existing system
- Advice on VAT rates and calculations
Conclusion
The last statement, you need a professional Chartered Accountant who will assist you in completing VAT compliance in Dubai. The above-mentioned tips are essential because minor mistakes in selecting VAT consultants in Dubai would cost your business. So, ensure all these tips and let experts handle your work.
FAQs
What is a VAT audit in Dubai?
Every business entity in Dubai has to prepare for a VAT audit. In the UAE, a checklist must be followed before starting a VAT audit. Records of all supply and imports of goods and services, tax invoices, tax credit notes, exported goods and services, adjustments or corrections, customs declarations, and bought fixed or capital assets are among the documents needed for a VAT audit in the United Arab Emirates.
How Long Does a taxable person have to keep the VAT invoice?
However, depending on the particular laws in your country, VAT invoices must be retained for a minimum of six to 10 years.
How does VAT in Dubai aid in Business Growth?
In the UAE, registering for VAT gives your company a professional and reliable appearance. It conveys that you abide by the regulations, giving your company a more polished appearance. This might draw in additional partners, consumers, and clients who prefer doing business with transparent, law-abiding businesses.
What are Dubai’s VAT Designated Zones?
A Cabinet Decision designates a region as being outside the United Arab Emirates (UAE) for Value Added Tax (VAT) reasons. These areas are set aside to provide enterprises with tax breaks. Furthermore, a few requirements must be fulfilled for this to occur.
What is the VAT Profit Margin Scheme in Dubai?
With the Profit Margin Scheme, a Taxable Person can choose to base their VAT calculations on the profit margin they made on the supply of products rather than the sale price. Only qualified items for this program may have VAT computed when all requirements outlined in UAE VAT law are met.
What is the VAT Reverse Charge Mechanism in Dubai?
The VAT Reverse Charge Mechanism (RCM): What is it? Businesses outside of the UAE are no longer required to register for VAT in the UAE due to the Reverse Charge Mechanism (RCM) under VAT. Transactions from across borders are the primary use case for the reverse charge mechanism under VAT.
What is input and output VAT?
The VAT a business pays on its purchases is known as input VAT, and the VAT it charges on the goods and services it sells is known as output VAT.
The customs value of imported items is subject to 5% VAT according to MOF, which is recoupable by enterprises that have registered for VAT. For some imports, there are exemptions and zero-rated products.
Are all free zones in the UAE VAT designated?
Free zones are often subject to standard VAT for the supply of goods and services and are not thought of as being VAT-free. However, certain free zones meet the requirements outlined in the Executive Regulations and the Federal Decree-Law on VAT to be considered designated zones.
