VAT or Value Added Tax is a tax that is applied to the use of different products as well as services. The service providers collect this tax from the public and then return it to the concerned authorities. The VAT system is not very old in the UAE. It was 1st January 2018 when the VAT system was implemented in the UAE. The number of goods and services that come under VAT are huge which goes from food to education and so much more. A lot of people got scared by the VAT because they thought it would prove to be harmful to their companies and money but this is not the case. This is because the amount of VAT collected by the government will then be used on the welfare of the country itself.
The basic aim behind the VAT implementation was to reduce the burden from the natural hydrocarbons.
The business has always been asked to get registered for VAT on time but it was never easy for the businesses because they had to alter their business functions to a huge extent. Some also found it very complex which then made them consult the VAT consultants in Dubai, UAE. The government has also played a huge role in making the public understand about VAT and how it is processed. A lot of seminars also got conducted so that people may get know-how of VAT in UAE
Why should you go for the services of VAT consultancy Dubai?
Experience and knowledge both matter if you are supposed to carry out a thing in the professional world. Same is the case with the VAT consultants. They are very well knowledgeable about the tax implications which makes them a very good option to consider for moulding the businesses as per VAT. Also, they are very well experienced regarding tax setups as well. So, if you take their piece of advice for your business matters, they will surely help you figure out the VAT process.
Why is consultation important?
Consulting the experts is very important for all the companies based in the UAE. This is because if any company has an annual threshold of more than AED 375000 and it still doesn’t get registered for VAT, it will get penalized. Also, it may have to pay heavy fines. A company must first fulfill all the legal requirements keeping in mind its annual turnover and then proceed with voluntary or involuntary VAT registration. The registration process must be handled very carefully if the company doesn’t want to face delays or other consequences.
The amount of VAT implemented on the people of UAE is 5% which is quite low. The amount generated from the VAT will then be used for the welfare of the whole country. The governing authority will be the Federal Tax Authority and the businesses with the turnover more than that of the threshold will be charged with penalties if they do not get registered on time.
Keeping an eye on the accounts is that is very important. Getting professional help can reduce the complications to a huge extent. You will not have to serve any time in figuring out anything because they already know it all. They will guide you throughout so that it may become easier for you to mould your business as per the VAT. The VAT consultants in Sharjah, Dubai, Abu Dhabi and more are indeed a good option to consider for setting up your business as per VAT.