Importance of Hiring a VAT Consultant for Your Business

Value-added tax or VAT consultants are certified professionals who provide enterprises comprehensive tax services ranging from getting your business a VAT registration to educating your people on the financial impacts of VAT on different goods and services that you deal in. Equipped with a VAT consultancy Dubai you can effectively manage your VAT obligations sticking to its laws, now has been implemented in UAE. Regardless of your business type, the products/ services you specialize in, having a VAT registration is mandatory for your business. So, let us discuss what makes it vital for your business to hire a VAT consultant when working in Dubai with a small briefing about VAT.

Briefing VAT

The VAT is basically an indirect tax or consumer tax, which is required to be charged at every point of the supply chain, and ultimately the end-users pay the tax. The introduction of VAT in the UAE will assist its government to decrease the country’s absolute dependence on oil, petroleum and hydrocarbon products as a key source of revenue. This will enlarge its wealth and will get the nation superior amenities like public parks, budget hospitals, student libraries, roadways, and more.

The necessity of VAT consultancy Dubai

VAT is complicated

Like many businesses, as you’re not well-familiar with the regulations of computing VAT, in its process of paying taxes, and getting tax refunds, you should always seek the best guidance of VAT consultancy Dubai. Rather than struggling with the complex rules of calculating input and output taxes and making erroneous calculations, it is always better to leave the matter on experts.

Expert Knowledge

Being well-trained and specialized, licensed VAT consultants take care of all your VAT related matters with their great insight and knowledge. The well-versed VAT consultancy in Dubai is consistently prepared to educate the businesspersons or tax-payers concerning the tax rates, what role their team needs to play while working with their tax consultants and enabling them to compute the input and output taxes. For example, they would expect your team to store all purchase bills and sales bills systematically in the files and make a list giving the details of those entries in a separate sheet, which should be tagged on the file. This helps busy professionals to estimate the amount of taxes quickly and seamlessly.

Avoid Misapprehension 

As of now, the overall percentage of VAT in the UAE is @5%, while some products and services are considered under 0% too. Typically, having a VAT registration has been mandatory for enterprises having yearly sales turnover at the level of 375,000 AED or above. Similarly, businesses involved in production or trade of food items, bicycles, or health and services like education and social activities are given absolute exemption of VAT. However, for them having a VAT registration is obligatory. Thereby, the complexity of VAT rules has become a matter of confusion to millions of enterprises, and they’re basically on the fence of having VAT registration. This is where working with professional groups specializing in VAT consultancy in the UAE makes great sense as in the first sitting, they review the type of your business, go through the books of accounts to find the annual sales turnover before suggesting you whether or not you are supposed to get registration right away.   

Shun Mistakes in VAT Filing

Consequently, due to the misinterpretation and widespread confusion, many small and medium enterprises trying to become registered, computing tax amounts and filing VAT on DIY endeavour are found making loads of mistakes in this process. Mind well, that making any kind of error in Tax issues makes employers legally responsible, and they are seriously panelized with endeavour hefty amount of fine, and it may also lead to a public audit.  Therefore, consider hiring a VAT consultancy Dubai to successfully avoid making mistakes in registration, computation of tax, or tax filing and attain the best essence of being a VAT registered company.   

Evade Miscellaneous Errors

It’s astonishing to commercial tax authorities in Dubai that numbers of business houses that come under 0% tax, supply products and services that are having an exemption, or even make less sales turnover are consistently charging VAT. You must not take the commercial law so lightly and remember charging tax in this way makes you lawfully punishable. Aside from this, forgetting the due date of tax filing, using incorrect forms or using wrong TRN number are also some major mistakes that businesses can effectively avoid with a licensed tax consultant firm.  It is, therefore makes better sense that you work with VAT consultancy Dubai and become a partner of the nation’s great project endeavour, intended to national interest and growth.

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