If you are a first-timer, you needed to learn that back on January 1, 2018; the United Arab Emirates implemented a new indirect tax. Officially known as the Value Added Tax, it charges a 5% rate on all goods and services. Detailed observation will essentially help you realise that the GCC countries’ VAT policy might potentially broaden the economic reach of the countries- by incorporating an additional source of revenue in the aftermath of the oil crisis.

You can expect to see this new cash source be used to fund high-quality public services by changing to a more sustainable consumption system. Additionally, you must also realise that this approach reduces the government’s financial reliance on oil and other commodities.

Here’s a detailed breakdown of the growing importance of VAT consultation services for businesses in the UAE.

What Is VAT?

Digging deep will essentially help you realise that the end-consumer ultimately suffers the costs. To put it, VAT (Value Added Tax) is a tax levied at each point of sale on the expenditure or usage of goods and services. The organisations must collect and account for the tax with the government’s help.

As per definition, a taxable supply is a distribution of products or services by a corporation in the United Arab Emirates that is taxed at either 5% or 0%. The authorities will also evaluate imports to see if a supply of the same products or services made within the UAE would be taxable.

VAT Registration Process

Your business firm can essentially pick from two VAT registration types- mandatory registration and voluntary registration. Your best choice for premium and professional VAT consultation must always include resources that can assist you in registering for VAT while taking into account the overall value of your taxable shipments and imports.

It would be best if you made it a point to keep in mind that the mandatory registration threshold for a business is AED 375,000- whereas the voluntary registration level is AED 187,500. Moreover, it’s worth mentioning that foreign groups are exempt from the necessary registration requirement.

How to Register For VAT?

If you are new to the system, you must understand that the FTA has created an easy-to-use system for submitting tax returns and paying taxes. You can always opt for registering your businesses for VAT through the FTA’s e-Services portal after creating an account. This is via the e-Services site available 24 hours a day, seven days a week.

You must ideally look for reputable VAT return services in the UAE to help you perform various VAT-related activities. The excellent consultants have rich knowledge of the procedures and complexities of VAT registration in the UAE.

Responsibilities of VAT Consultants

A VAT consultant’s primary responsibilities can vary according to the situation. However, the most typical tasks of a VAT consultant include:

  • Completing VAT filing requirements
  • Maintaining an organisation’s correct bookkeeping and accounting
  • Ensuring VAT compliance with UAE Federal Rules

Why Do You Need VAT Consultancy?

There’s no denying that most firms in the United Arab Emirates are unfamiliar with the guidelines and principles governing VAT calculation and payment. Therefore, you must ideally arrange for support from experienced VAT return services. They can make dealing with intricate formulas, figures, and accounting easier. Here’s a detailed breakdown of the key reasons for bringing in VAT consultant experts:

  • Better Knowledge: VAT experts come with a comprehensive understanding of VAT procedures, laws, and regulations. They can inform taxpayers about the many value-added tax rates and calculate the correct payment.
  • Accuracy: VAT specialists go over and beyond to ensure that each VAT file is accurate, unlike your in-house accountant.
  • Industry Experience: A skilled VAT consultant with years of expertise can help you avoid frequent mistakes that people make when registering for VAT, filing returns, and other associated operations.
  • Time-Saving: More and more people are hiring skilled VAT consultants to save time when effectively analysing VAT for your business.
  • Reduced Risk: A VAT consultant with extensive experience can cope with many company issues. They can provide the best methods for reducing the potential hazards linked with VAT.
  • Improved Finance Process: There’s no denying that financial analysis, calculations, and evaluations require careful thinking and concentration. As a result, it is usually a good idea to obtain financial advice from a Professional VAT Consultancy Services.

Final Word

It only fits to admit that individuals looking for a method to make a living on their terms frequently consider business a viable option. If you are considering establishing an in the United Arab Emirates should ideally develop a detailed understanding of the country’s tax rules. If you find this challenging for your comprehension, you may choose to hire the services of Accountant Dubai. You can find them online today for appointments.