As some are searching for a great chance to earn a living on their terms, they often look at starting a business as one of the best ways to do so, which often entails getting VAT registration in the United Arab Emirates. Starting a business enterprise, allows them to establish their name in society and build a brand in the business arena. Moreover, this allows them to have the chance to take part in an industry which they admire and one in which they are specialised.
If one wants to establish a business in the United Arab Emirates, it is important to be aware of its taxation rules and regulations. This process usually proves difficult, especially because tax laws can be very complicated. The preferable way to go forward is to avail of the services of VAT experts in the UAE.
What is VAT ?
Fig 1. What is VAT – 9 reasons why you should be interested in VAT registration and VAT experts in the UAE
Before one goes on and discusses the reasons why you should employ the services of a professional for the process of VAT registration in the UAE, you might need to understand exactly what VAT tax is and what it means for businesses. VAT is an indirect tax of 5% that is charged on the consumption or use of goods and services. VAT tax is collected at each point of sale of goods or services, that fall under the VAT rules. The final consumers are the ones who eventually end up paying for VAT tax.
Companies are required to register their business for VAT tax if their taxable turnovers go beyond AED 375000, within a period of 12 months. Businesses that expect their taxable turnovers to exceed this same amount in the next 30 days, can apply for the registration procedure. Business owners can also choose to register on a voluntary basis.
So why do you need to get VAT Experts in the UAE?
If you think that your business might qualify, or if you plan on voluntarily registering for VAT, you will need to hire an expert on VAT issues. It is the responsible thing to do when one is running a business. VAT tax is relatively new in the UAE, therefore, hiring a consultant who specialises in VAT is essential. VAT tax was only introduced within the United Arab Emirates in January 2018, which understandably makes it a fairly new concept in the country.
1. Offers Professionals that keep you Informed
Fig 2. Professionals that keep you informed – 9 reasons why you should be interested in VAT registration and VAT experts in the UAE
Professional consultants that are experienced will know of any changes or important new aspects of this tax law, ensuring that they provide assistance with compliance and avoid any problems. Additionally, they can keep up to date on any changes made to existing laws, which aids them in remaining competent in their field of specialisation.
2. Delivers Reliable VAT Tax Consultancy Services
When you arrange for the services of consultants, you can expect professional advisors that will provide you with the most trustworthy, consistent and efficient services available. VAT experts in the UAE also indirectly take care of their client’s brand, this means that they will only hire consultants who will boost their reputation. When a business hires from a well-known consultancy, they can expect to be spared from a tedious and difficult process as the consultant can take on any matters related to tax, with minimal problems.
3. Ensures Compliance with Rules and Regulations
If you decide to hire VAT experts in the UAE, you can be assured of your business operations running smoothly and with minimal risks, in order to ensure your success. When you seek the help of VAT professionals, you can be sure that your company will be in compliance with the local taxation laws and avoid the risks of breaking regulations. It is important to remember that the VAT tax rates change from time to time and it is crucial to meet the necessary requirements of the board.
4. Enable the Company to Focus on Other Aspects
Hiring the services of a VAT consultancy will help your business meet goals and save the company plenty of time. Experts have professional knowledge and are up to date on the latest changes in rules and developments in the industry. They will assist you in filing the returns on time and make the payments within the deadline.
Fig 3. Helps Focus on Goals – 9 reasons why you should be interested in VAT registration and VAT experts in the UAE
A company does not need to hire specific employees to manage the taxes of a business. It is important that the business focuses on other areas of the company that need attention. Handling taxes must be left to the professionals. As expected, VAT is introduced by the government at the rate of 5%. It is good to note that you should entrust your financial management and taxation, to professionals who know where the rates are applicable and how to go about.
5. Offers Experienced Help
Finding VAT experts in the UAE will also provide you with much-needed additional services such as auditing, assurance, bookkeeping and help with corporate finance. Experienced experts can help your business with making the right decisions when it comes to calculating deductions and payments of VAT tax when the occasion arises.
6. Help Avoid Unwanted Penalties
When you hire VAT consultants, you will be required to comply with the stipulated deadlines and make the payments owed to the related government tax bodies. The consultancy that you hire will handle all your concerns for you and will ensure that you do not end up having to pay any penalties due to late payment.
7. Assistance in the Decision-Making Process
The VAT tax returns will be filed in a timely manner and your business will be able to develop its financial statements with relative ease. The entire process requires the knowledge of a professional with valuable expertise, in order to understand the details needed and to know the level of applicability of VAT for a business. After such procedures are complete, the consultants will be able to decide whether VAT tax is applicable for your company or not. If it is, the consultants will assist you during the entire process of filing and keep updating information on the account books.
8. Offers Specialised Knowledge on Subjects
Fig 4. Offers specialised knowledge on subjects – 9 reasons why you should be interested in VAT registration and VAT experts in the UAE
It is necessary to hire a VAT consultant, mostly due to the fact that this tax has been introduced rather recently and there does not seem to be much clarity on the topic for some businesses. Consultants possess gathered knowledge and can understand the taxs’ applicability, to ensure that your business is on the right track to great success.
9. Saves Valuable Company Time
You do not need to spend your valuable time on tasks such as trying to decode the basics of tax laws when you have consultants at your fingertips. The consultants will deal with everything for you and will provide great advice on how to go forward. Hiring experts for VAT registration in the UAE will be the best business decision that you make for your company’s progress.
Fig 5. Saves Valuable Company Time – 9 reasons why you should be interested in VAT registration and VAT experts in the UAE
Thus, VAT consultants offer very valuable services such as assistance with a wide array of VAT issues, ranging from VAT application, registration, return filing and other complicated matters related to goods and services. As it is clearly visible, VAT experts are of huge importance in the UAE. This is due to the relatively new introduction of VAT tax into the country. In such a situation, consultancies offering VAT services can only be a beneficial force to enable businesses in coping with the new tax implementation.