Overview of Value Added Tax in Dubai, UAE
If you are having business in Dubai, UAE, you must be familiar with the term of “Value Added Tax” or VAT. The value added tax is implemented on goods or services and it necessary to deal with if you want to run your company in long terms. This tax is not in United Arab Emirates (UAE) only, but in many other countries around the globe.
In United Arab Emirates (UAE), the VAT system was introduced in 2018. The aim of introducing this system was to diversify the revenue sources at the government level. In this way it would become a bit manageable to reduce reliance on oil exports. After implanting VAT in United Arab Emirates (UAE), it has been observed that it became a vital source of revenue generation. That is how, the country is facing positive growth in the development of economics.
Significance of Engaging a Best VAT Consultant in Dubai, UAE
It is necessary to have clear idea about the importance of VAT for all business types in Dubai, UAE. Do you know how to certify compliance with the regulations of Value Added Tax? Do you know how to avoid penalties? Lastly, do you have idea about increasing the profit of VAT for your business?
For providing assistance in all the mentioned aspects, the Value Added Tax consultant in Dubai can be a good option to go. Always go for experienced and expert VAT consultant. In this way, you can get the best out of your business. Also, you can better navigate the complications of VAT regulations. That is how, you can ensure that your business is meeting all the necessary requirements on time.
- Tips for Selecting the Best VAT Consultant in Dubai
There are some tips for selecting the best VAT consultant in Dubai, United Arab Emirates (UAE):
- Do Research and Find Competitive VAT Consultants
First of all, you should start research on best VAT consultants in Dubai and then shortlist the top consultant in Dubai, UAE. Secondly, you can get assistance of online directories. Lastly, you can get to know through your business partners about VAT consultant. In this regard, you should also ask those business owners who are working on same goods and services as yours. So, you may not have left with any confusion.
- Get to know about Credentials and Experience
When you get suggestion about a particular VAT consultant, you are not supposed to hire that person immediately. What you have to do is to check out his qualification and then his expertise. In case of qualification, the best idea is to go for one which have degree in accounting or finance. Also, you can go for one who have degree in other relevant field. After that, you need to see if the person has certifications like Certified VAT Expert (CVE) or the Certified Public Accountant (CPA).
- Client Reviews and Service Fees
You can compare two or more consultants based on the client review. This approach can help you to have idea about the previous dealing of the selected person. Further, you have to see the packages offered by each of the consultant. Check out fee of each service provided by consultant and go for the one who offer budget friendly packages.
- Gage Communication System
Whenever you need to hire anyone for any service, it is necessary to know about the communication skills of that particular person. Gage if the person is responsive and available at the time of your need. You must look at this aspect before hiring a consultant.
- Issues and Challenges related to VAT in Dubai
No doubt there are multiple benefits of Value Added Tax in Dubai, United Arab Emirates (UAE). But still you would have to deal with some particular issues and challenges. These challenges are observed in case of compliance. Following are some commonly faced issues as well as challenges related to VAT:
- No Registration to VAT
If you are generating annual turnover of AED 375,000 or more in Dubai, UAE, you need to go for registration to VAT. If you do not register for it, you would have to deal with fines or penalties. So, it is better to register for VAT on time.
- Unfitting Calculation of VAT
One of the most commonly observed issue is the unfitting VAT calculation. Such mistakes in calculation can cause underpayment. Also, you may have to deal with overpayment of VAT. In both cases, you would be asked for fines or penalties. Such cases cause bad impacts on the status of your business. So, it is better to accurately calculate everything. You can use calculation software for this purpose.
- Issue of Non-Compliance
Non-compliance with VAT regulations also become the cause of fines and penalties. You may also have to deal with legal actions. You can sort out this issue, if you keep yourself up-to-date with all the newest regulations of VAT. This can help you compliant your business with necessary requirements.
- How to Deal with Challenges of VAT
The easiest way to deal with the issues and challenges related to Value Added Tax in Dubai, United Arab Emirates (UAE) is to hire a consultant. Following are the benefits you can get by hiring a VAT consultant:
- The consultant can deal with all VAT compliance on your behalf
- You can better save time, money and efforts
- You can get assistance in terms of VAT planning
- The consultant can optimize your VAT position effectively
- You can get increased rate of profitability
- You can get a way to represent your business for VAT investigation or audit
Final Thoughts
For running business in Dubai, United Arab Emirates (UAE), you are supposed to know about Value Added Tax, VAT. You can deal with all VAT related aspects by yourself. In case of any query, you can hire a consultant and you must investigate first for hiring anyone. Get to know about issue and challenges of VAT and find an accurate way to sort out any issue. By working on all these aspect, as a business owner, you can stand out in Dubai, United Arab Emirates (UAE).
