Professional VAT Implementation in the UAE
The VAT implementation in Dubai enables companies to carefully track their revenue expenses and the corresponding VAT charges. Every step of the supply chain taxes VAT, which usually is paid by the final customers.
VAT registration
If a company’s taxable supply surpasses the statutory AED 375,000 level, it must register for VAT. Businesses should also register voluntarily if their taxable supplies, taxable imports, and taxable expenses surpass the AED 187,500 voluntary registration barrier but fall below the required registration threshold.
VAT Return Filing
This comes when recommendations for improved cash flow planning and timing are made, and the appropriate input tax credit is calculated against the total tax burden.
Exempt from VAT Registration:
Businesses are not permitted to apply for VAT in the United Arab Emirates if the value of their taxable imports and supply falls below the voluntary threshold. Additionally, a company producing zero-rated items may apply for VAT exemptions.
Bestax tax advisors in Dubai will expertly check all your exempt/non-exempt supplies, input tax, and output tax, reconcile the transactions, and submit the VAT return. Their error-free tax assessment and calculation will reduce the risk of penalties from the federal tax authority for VAT non-compliance.
Advanced VAT Implementation software
A business should determine whether its accounting software is ready to adapt to the new VAT system in the UAE. Bestax’s team will make sure that your IT system can comply with VAT requirements in day-to-day transactions. Bestax’s VAT consultants in UAE will review your current accounting system to assess its suitability for the VAT laws.
Bestax provides services for ERP implementation and VAT accounting software setup to suit your business needs. They guarantee that the recommended IT system will be configured in compliance with VAT regulations.
VAT training for employees
The VAT implementation in the UAE requires that a company’s employees know the latest VAT laws in the country. This is the biggest milestone in the implementation of VAT laws for a registered company. Employees must have the skills to prepare and record tax invoices, journals, and credit notes by FTA standards. For this reason, they provide employees with full guidance on VAT duties and responsibilities.
The consequences of not including VAT
VAT registration and compliance are mandatory for all taxable businesses in any emirate in the UAE. All businesses should therefore check how they are currently VAT implementation in the UAE. VAT non-compliance by a taxable entity often manifests itself in the form of omissions, inaccuracy of information, unverified documents, inappropriate VAT software, poor quality accounting records, late filing, and many other VAT non-compliance issues.
In such a situation, the federal tax authority may impose large penalties on the company. The situation is worse when the FNA carries out VAT audits and imposes penalties which are a burden for taxpayers. It is therefore advisable to outsource VAT implementation to experts in the UAE to avoid FTA penalties in the future.
Implementing VAT in UAE plans and strategies
Plans for adopting VAT include the following:
Evaluating company transactions:
The transactions are carried out without difficulty and with accuracy.
Determine implications:
To choose the best method for VAT implementation, you must first determine the consequences based on the current model.
VAT assessment:
Businesses should evaluate their platforms’ preparation for VAT and confirm that they can handle new implementations.
VAT blueprint:
You must have a plan detailing how you will apply VAT to your company model.
Configuration of the IT system:
The VAT requirements should be followed while configuring the IT system.
Do you need a VAT implementation consultant in the UAE?
The implementation of VAT in the UAE is a substantial and long-term procedure that is complex for ordinary businessmen. It requires up-to-date knowledge of the authorities and expertise in VAT compliance. Bestax chartered accountants in Dubai have been helping businesses for years by providing exclusive VAT services in Dubai.
Bestax specializes in VAT implementation and never disappoints its clients’ expectations. Their tax experts assess your invoices, logistics, and transactions under the UAE tax procedure law. They are dedicated to assisting you in all your VAT implementation procedures in the UAE. Contact us today and find out how their VAT consultants can help you!
Conclusion
For the United Arab Emirates, the Value-Added Tax Policy is an innovative step towards economic reform. The strategy established a more robust and sustainable economy by promoting economic diversification, improving fiscal stability, and diversifying income sources.
