Hello Business (men/women) out there in UAE, you have landed on one of the best guides to know the exact role of VAT Consultants in UAE to help your business prosper.
VAT or Value Added Tax is to be implemented in UAE by 1st January 2018 at the overall standard rate of 5%. Businesses are formulating to handle the VAT in UAE as efficiently as possible. However, implementing VAT on any business is crucial &hence it is ideal to hire a professional VAT Consultant in UAE.
Let’s dive into our topic Top 10 Reasons why you need VAT Consultancy Services in UAE to implement VAT on your business.
- 1) To Know Whether You Need to Register for VAT or Not:
- 2) To Know When & How to Register for VAT in UAE:
- 3) To Understand the impact of VAT on Your Business in UAE
- 4) To Get Proper Guidance to Minimize the Negative Impact of VAT:
- 5) To Have a Best VAT Implementation Strategy for Profitable Business:
- 6) Tips to Know How to Claim VAT Refunds for Your Business
- 7) To Form VAT Grouping: Reduce Stress on Accounting & Auditing
- 8) To Know the Impact of Insurance, Excise Duty &Sales Tax Over VAT in UAE
- 9) To Get Awareness on VAT Rules & Penalties and Other Real-Time Changes
- 10) Other Queries & Clarifications Regards VAT in UAE 2018
- Conclusion: Reasons to Hire VAT Consultants in UAE
1) To Know Whether You Need to Register for VAT or Not:
Value Added Tax in UAE is an indirect tax that is imposed on utmost supplies of Goods & Services (GS) that are bought and traded across UAE. First of all, VAT registration is mandatory for a business if their taxable supplies &imports overdo the compulsory registration threshold of AED375,000. At the same time, if their supplies & imports are less than the required registration threshold, but exceed the voluntary registration threshold of AED 187,500, then that kind of business may choose to register for VAT in UAE voluntarily.
However, what about a non-resident business, Startup or Offshore company VAT registration? A VAT Consultant will give you a better idea of the new VAT Law in UAE. Based on his/her guidelines, you will know exactly whether to register your business for VAT or not.
2) To Know When & How to Register for VAT in UAE:
The Online Registration for VAT has already started for certain businesses in UAE. It is mandatory to register VAT before the deadline, which is subjected to vary according to the business type & revenue. With the help of a VAT consultant, the registration process would be a cakewalk as a VAT consultants would give you a precise idea of the different documents that are required to register for Vat and guide you through the entire process.
3) To Understand the impact of VAT on Your Business in UAE
Finding the actual impact of VAT on any business is quite difficult unless it is practically implemented. However, VAT consultants are professionals in predicting the impact of VAT on any business.
With the help of a VAT consultant who can analyze your business and forecast the measurable impact of VAT on your business, you will be able to develop a financial and operating strategy.
4) To Get Proper Guidance to Minimize the Negative Impact of VAT:
As discussed above, if the impact of VAT on your business is higher, you certainly need a better strategy to minimize it. A talented Value Added Tax Consultant in UAE will guide you with reliable strategies to reduce the negative impact of VAT on your business.
5) To Have a Best VAT Implementation Strategy for Profitable Business:
Every right business strategy will yield better revenue. The one who understands your business structure, its financial strengths &weakness, could plan the implementation of VAT in a profitable way. A professional VAT consultant will collaborate with your existing accountants and auditors (if any) to come up with the best VAT implementation strategy based on the local law (if any, as the VAT is going to be implemented across GCC). Better the implementation, best the results.
6) Tips to Know How to Claim VAT Refunds for Your Business
“You can claim a refund on your VAT”, yes you read it right. The upcoming VAT law in 2018 gives you the power of claiming refund too. Again, the refund claim process isn’t that easy. An expert VAT consultants in UAE will calculate the amount of excess vat paid and fill for the refund. In terms of business, “any return on investment is always a profit”.
7) To Form VAT Grouping: Reduce Stress on Accounting & Auditing
Businesses that satisfy certain requirements provided by the legislation (such as being under the same ownership and located within the same GCC country) will be able to register as a VAT group.
- For certain businesses, VAT grouping will be a useful tool to simplify accounting for VAT.
- VAT grouping enables you to get a single VAT number and file single VAT returns.
You can hire professional VAT consultants in UAE to create a VAT grouping process, which simplifies the tax auditing.
8) To Know the Impact of Insurance, Excise Duty &Sales Tax Over VAT in UAE
Most of the insurance are taxable with the UAE Tax law 2018, however, Life Insurance is exempted. If you are into an import &export business, there comes the excise or customs duty tax. There is a separate sales tax for business (retail or wholesale). A professional VAT consultancy service in UAE will give you awareness about the relation between these taxes to the upcoming VAT and its impact on your business.
9) To Get Awareness on VAT Rules & Penalties and Other Real-Time Changes
Implementing the VAT isn’t a onetime setup for business. Once the VAT Law is implemented across GCC by 2018, we can expect certain changes to the law, like a new product, can be added to it or exempted from tax. You will need a real-time awareness about these changes in the VAT rules. With the help of VAT consultant services in UAE, you will always be a step ahead and implement changes to your business according to the law.
10) Other Queries & Clarifications Regards VAT in UAE 2018
The VAT law might keep on changing, as certain products could either be added or exempted from it, the respective business needs a clarification regarding the same. Hiring a dedicated VAT consultant in UAE will give you a real-time answer to all your queries regarding VAT 2018.
Conclusion: Reasons to Hire VAT Consultants in UAE
In the above lines, we discussed the top 10 reasons to choose a VAT consultant in UAE for your business. Business is all about investment and growth. It is the right time to invest a small amount towards hiring an expert VAT consultant for your business. Find the list of Top Professional VAT Consultants in UAE here. Get expert advice for a better financial and operational strategy after the implementation of VAT in 2018.