Featuring business-friendly policies, world-class infrastructure, intelligent transportation, top-of-the-line living standard, a mixed bag of people and cultures, the strategic location of the nation, plenty of free zones, a cartload of business opportunities and so much more, the UAE offers myriad perks and benefits to budding entrepreneurs as well as seasoned business persons. But the most tempting one was its tax-free regime. And as a business person, you never had to bother about VAT or finding a professional VAT consultant in Dubai until 1 January 2018, the day when Value Added Tax (VAT) at the rate of 5 per cent was introduced in the nation for the first time for businesses that hit the threshold of Dh375,000 annual turnover. But now you do! So not only do you know the right time to register your business for VAT but also the advantages and disadvantages of voluntary or mandatory VAT registration in the UAE. Let’s figure out why do you need one of the best VAT consultants in the UAE for your business. But before that…
A quick recap
A tax levied on the consumption or use of goods and services at the point of sale is termed VAT which is 5% at present all across the UAE. Whether you should register for VAT or not as a business owner, you may easily determine by going through the VAT registration criteria set by the government i.e.:
- A business MUST register for VAT if its annual taxable supplies and imports exceed AED 375,000. It’s mandatory.
- A business MAY register for VAT if its annual supplies and imports exceed AED 187,500. It’s voluntary.
A business is liable to pay all the collected tax from customers back to the government. At the same time, they can claim a refund from the government on taxes they have paid to their suppliers. Foreign businesses may also recover the VAT they incur when visiting the UAE. You may check out the UAE tax laws and procedures (VAT & excise) on the website of the Federal Tax Authority. Click here to know how to register for VAT and here to learn about the VAT registration and VAT deregistration process in the UAE.
Who are VAT consultants and what services do they provide?
When you are in a business, you must know the score – VAT non-compliance in the UAE can attract hefty penalties. It’s your VAT tax consultant who helps you remain VAT compliant. In addition to helping businesses register on the UAE VAT system, they deal with their VAT liabilities as well as bring to their notice the VAT implications of particular transactions. They are basically your port in a storm! Varying business to business, the services provided by VAT Consultants in the UAE usually include:
- VAT advisory
- VAT compliance issues & control
- VAT transaction advisory
- VAT return filing
- VAT registration & VAT deregistration
- VAT training
- Assistance in the payment process to FTA
- Revenue Report Preparation for FTA submission
- Internal VAT Audit
- Review of Purchase Invoices
- Review of Sales Invoices in compliance with the FTA rules and regulation
- Client organization
- Minimisation of VAT liabilities
- Identification of risk & proper solutions
- Recognition of prospective tax planning opportunities
- Recording and organisation of data
- VAT-considered bookkeeping & accounting
- Purveyor organisation
Why should I hire a VAT consultant for my business?
Whether UAE or any part of the world, rules and regulations keep changing and to it is crucial for businesses to stay up-to-date with them so they don’t have to deal with the repercussions for not adhering to them. Plus, you don’t want to make any mistakes or errors in VAT calculation, VAT returns filing and VAT payment process. With an experienced VAT consultant by your side, dealing with complicated VAT tasks becomes a lot easier. Plus, you don’t have to deal with complex formulas, figures and calculations. Other reasons why you should consider reaching out to one of the top VAT consultants in the UAE are because:
- They are experts in the field: The VAT experts are au courant with VAT laws & rules and can educate taxpayers about the various VAT rates and the right way of doing payment calculations. The most competent VAT advisors bring to the table their comprehensive knowledge about VAT-related procedures, rules and regulations.
- They are accurate: Accuracy is everything! Unlike your in-house accountant, VAT consultants go the extra mile to ensure that every VAT filed, whether for return or payment, is accurate. As they are industry experts and possess years of hands-on experience in the area so they are capable of avoiding the generic mistakes made during the VAT registration, return filing and other related tasks.
- They save you a fortune of time: VAT analysis, assessments and risk measurement associated with the company are cumbersome and time-consuming activities. Hiring a qualified VAT consultant worth their salt helps you slash your invaluable time in great deal.
- They analyse and reduce risks: Tax risk management is also one of the roles of a VAT expert. They are equipped to deal with all kinds of risks in business. A competent VAT specialist is able to assist you in determining and mitigating risks associated with VAT such as unnecessary tax costs and unintentional non-VAT-compliance.
- They prepare you for tax audits: Filing of VAT return is not the last step of compliance in a tax period, as many think, but yes, it is the first step towards VAT audit. Businesses should review their already filed VAT returns and make sure that all tax positions opted by the company are correct, supporting documents are available with them, the system is capturing all the required data fields into the system and the company is preparing the reconciliation statements between VAT returns and accounting data for the upcoming VAT audit. It is advisable for all the business entities in UAE to prepare themselves for tax audits in a timely manner as FTA allows only 5 days to respond to their queries.
- They improve the process of finance: Your in-house finance team might not have thediligent consideration that is required to nail financial assessment, calculations and assessments. Hence it is always advisable to seek a professional VAT consultant for opinions regarding finances.
- They help you grab opportunities: You don’t necessarily have to register for VAT if your annual turnover is ranging between Dh187,500 and Dh375,000. But if you do, it can be beneficial for your business. How? Many are living under the rock when it comes to knowing the benefits of voluntarily VAT registration.
The UAE Government implemented VAT because they have to run the country of seven emirates successfully while ensuring that people are happy when they are living or working in the UAE while enjoying high-quality services just like you have to run your business while being compliant with the rules and regulations laid out by the government that keep changing. With a million things to do, you can’t keep everything in mind. And when it comes to taxation, an expert is what the doctor ordered to steer clear of unnecessary troubles that might crop up for not being in line with the law. These are just some of the advantages hiring a VAT agent or specialist can offer. In many cases, employing a VAT consultant from a reputed business set-up company in Dubai, UAE can prove significantly beneficial to your organisation.
Where can I get the best VAT Consultancy in the UAE?
Reach out to Adam Global Dubai. The Adam Global Dubai VAT consultants are happy to assist and guide you through all the aspects of VAT, from registration and deregistration to assisting in filing for returns and payment to auditing and advising to reduce liabilities to addressing any compliance issues and providing VAT training. With our VAT specialist working with you, you will not just be able to avoid penalties for non-compliance, but also reduce unnecessary expenditure within the company, essentially streamlining it. They also assist your company’s tax accountants and finance department to apprehend the various aspects of VAT that can impact your business in the future. With the wisdom of hindsight, we know how you can optimise your resources to achieve profit maximization which is one of the objectives of your business.
Probably you chose Dubai because it is easy to set up a business in the emirate. Thanks to the investment-friendly policies formulated by the Government and the availability of business set-up consultants. However, running a company and dealing with taxes overseas is not a piece of cake. An experienced business formation company in Dubai such as Adam Global is the one-stop solution to all your business-related needs. We offer a wide range of services to help you not just in setting up your company but also assist you in running it efficiently within the legislative framework, whether you are providing digital marketing services or operating an e-commerce company. Feel free to schedule a meeting with us to know how we can help you regarding VAT in Dubai, UAE. Your first consultancy is on us!