Why VAT Consultancy Services required for your business in UAE?
The United Arab Emirates introduced a new form of indirect tax called Value Added Tax (VAT) on 1 January 2018 with a rate of 5 percent on goods & services. The VAT policy assumed by the GCC countries potentially widens the economic scope of the countries by integrating an additional source of revenue in the wake of the oil crisis. This new source of income will be utilized for high-quality public services by shifting to a more sustainable consumption system. It also aims to reduce the government’s dependence on oil and other hydrocarbons as a source of revenue. Read more to understand the need for VAT consultancy services for business in UAE.
What is VAT?
Value Added Tax or VAT is a tax imposed on the expenditure or use of goods and services at each point of sale. The expense bearers will eventually be the end-consumer. In the aid of the Government, the organizations are obliged to collect and account for the tax. A taxable supply refers to a distribution of goods or services by a company in the UAE that is taxed at a rate of either 5% or 0%. Imports are also considered if a supply of such goods or services would be taxable if made within the UAE.
Services provided by VAT Consultants
The services of VAT consultants vary depending on the business. Some of the archetypal responsibilities of the VAT agent consists of:
- VAT compliance issues and control
- Minimize VAT liabilities
- Identify risk and proper solutions
- Identify prospective tax planning opportunities
- File VAT and payment.
- Record and Organize Data
- Accounting & Bookkeeping.
- Purveyor organization.
- Client organization.
VAT Registration Process
Basically, a business can opt for any of the two types of the VAT Registration process: Mandatory Registration and Voluntary Registration. A good VAT consultant helps the business to register for the VAT considering the total value of its taxable supplies and imports. While the threshold for mandatory registration of a business is AED 375,000, the threshold for voluntary registration of a company is AED 187,500. However, the mandatory registration threshold is not applicable to foreign organizations.
How to register for VAT?
After creating an account, businesses can register for VAT through the e-Services portal on the FTA website. The FTA has implemented a 24/7 easy-to-use system for submitting tax returns and paying taxes via the e-Services portal.
Contacting a reliable VAT consultant in UAE help to precisely do the various VAT related activities such as VAT accounting, VAT registration, VAT deregistration, maintain proper records for VAT return filing, tax accounting, tax consultation, VAT impact study, etc with a better perspective of the procedures of the VAT. They know the right modus operandi to follow for UAE VAT registration. That is why CDA is a very good option to be considered by the companies for their compliance with the VAT laws in the UAE.
Responsibilities of VAT Consultants
The key responsibilities of a vat consultant may differ from case to case. Some of the prime responsibilities of a VAT consultant include:
- Keep proper book of records and accounting of an organization
- Complete VAT filing requirement
- Ensure VAT compliance with UAE Federal Rules
Why do you hire a VAT consultant?
Many businesses are not well-known about the rules and regulations of VAT calculation and the process of payment. Seeking guidance from the VAT consultants help to easily tackle the complicated formulas, complex figures and calculations. Other reasons for hiring VAT consultants include:
- Better Knowledge: The most competent VAT consultants come with in-depth knowledge about the VAT-related procedures, rules and regulations. The VAT experts who are well-versed with VAT laws & rules can educate taxpayers about the various VAT rates and right payment calculation.
- Accuracy: Unlike our inhouse accountant, VAT consultants take the additional effort to make sure that every VAT filed is accurate.
- Industry Experience: A qualified VAT consultant with years of experience is capable of avoiding the common mistakes made during the VAT registration, return filing and other related activities.
- Time-saving: Hiring a good VAT consultant helps you to cut down the huge amount of time you spend for VAT analysis, assessments and risk measurement associated with the company.
- Reduced risk: A rigorously experienced VAT consultant is capable to deal with all kind of risks in business. They can suggest you the best options available to reduce the potential risks connected with VAT.
- Improved process of finance: Financial assessment, calculations and assessments require diligent consideration. Hence it is always advisable to seek service from an expert VAT consultant for opinions regarding finances.
CDA VAT Consultancy Services in UAE
Being one of the leading VAT consultancy service providers in the UAE, CDA provides a lot of VAT related services including:
- VAT considered Accounting & Bookkeeping
- Review of Purchase Invoices
- Review of Sales Invoices in compliance with the FTA rules and regulation
- Internal VAT Audit
- VAT Return filing assistance
- Assistance for the payment process to FTA
- VAT consultancy services
- VAT registration
- VAT Training
- Revenue Report Preparation for FTA submission