Starting from 1st January 2018, VAT (value-added-taxes) has been implemented by the UAE government with an objective to reduce its over-dependence on oil and petro/hydrocarbon products as a steady source to generate national income. By nature, VAT comes under indirect taxes or general consumption tax which needs to be collected incrementally according to the valued added on every stage of production phase or sales. In UAE, VAT is imposed on almost all goods and services that are bought, sold, and consumed. Now it has been compulsory for all businesses operating in the UAE region to apply for registration for VAT immediately prior to its impending deadline.
Why Hire VAT Consultancy in Dubai?
ïƒ˜ No surprising that VAT is a more complicated tax approach and similar to most businesspersons it might appear quite confusing or even intimidating to you. Don’t sweat! To help you out throughout the process, get in touch with VAT consultancy in Dubai ( Ethicsplusuae.com/vat-consultancy ) that will take care of everything related to your VAT obligations from business evaluation to VAT registration and submission of needed documentation, tax computation, to return of VAT and more. They are specially trained and registered tax professionals who will understand your type of business, its volume and accordingly perform the needful joint efforts depending on whether or not you will require having a VAT registration with a pre-assessment.
ïƒ˜ While sales tax is mainly implemented at the end part of closing a sales deal and consumers pay that tax, the basic difference of VAT is that it’s imposed on every step connected to the production chain. Even though the tax is eventually paid by consumers, however, in this case, the business or production companies collect the taxes for the government as their tax collectors and pay to the tax authorities. The standard tax is levied @ 5% on nearly all goods and services while a few are being exempted. If the revenue of your business is AED 375000 or more, you are supposed to get immediate VAT registration in Dubai. According to the Federal Tax Authorities UAE, that all businesses fall under VAT registration should submit their financial transactions in the prescribed format while applying for VAT registration to avoid penalties.
ïƒ˜ Whatever taxes you pay on all your purchases ( for production or sales) that are called as input taxes and after production of the goods, as you sell them to consumers, the tax you collect from them is output tax. Thereby, there is a provision of tax refund also which applies when it’s found that you’ve paid excess tax to your suppliers. The team of vat consultancy in Dubai will compute all your input tax and output tax that you have paid and received from your invoices. After computation, if it’s found that input tax in more than output tax, you’re eligible to get a tax refund and they will take the responsibility to carry out the things as per the regulations.
ïƒ˜ A professional VAT Consultancy in Dubai ( https://ethicsplusuae.com/ ) will undertake the responsibilities such as submission of relevant documents, filing of previous year business revenue, calculation input and output taxes and preparation of final documentation. Importantly, some businesses come under 0% tax also such as medical devices, healthcare services, crude oil, and others. And depending on the business types, the procedure of documentation varies.
ïƒ˜ Even though VAT is completely a new concept and every business is not accustomed to its formalities, however, never take your obligation to VAT lightly, since avoidance of VAT return filing is likely to attract hefty penalty. Therefore, to assume all hazards of your VAT obligation, obtain immediate support of VAT consultancy and carry on your business peacefully with full concentration.