What is VAT?

Value Added Tax (VAT) is an indirect tax. It is a consumption-based tax, and it is imposed on almost all the goods and services. It is common in many parts of the world. Many countries including European Union members have VAT or GST (Goods and Services Tax). In fact, around 160 countries have already implemented VAT/ GST. Major ones among them would be Canada, New Zealand, Australia, Singapore, Malaysia, and Japan. Our tax consultancy service in Dubai is for all businesses.

VAT is imposed on the value additions at different stages of production and distribution, starting from raw material to final products which mean it is levied on each step of the supply chain. Generally, consumers bear the ultimate cost of VAT. The role of businesses is to collect and maintain accounts of the tax collected for the government. Thus, it is an indirect form of tax which is paid by the end user or the consumer to the government through the producer of goods and services.

However, as a business, you will be purchasing raw material and other things for day to day operations. This is where you will be paying VAT to other firms. The simple calculation here should be that the VAT you pay and VAT you receive must equal out and if it does not, then you will file your VAT return and the government will reimburse the difference. This is where as your VAT consultant in UAE, we could assist you. Our team will be doing periodical filing of returns and calculation of any VAT liability in UAE or GCC. We also provide VAT courses in UAE.

Value Added Tax

As most of you are already aware of the fact that VAT is set to make its debut in UAE. As a part of diversifying the economy and revenue generation, GCC (Gulf Cooperation Council) governments have decided to introduce VAT by 2018. The reason for implementing VAT is another source of income generation for the UAE Governments because of the sharp decline in oil prices in recent times. Time line decided to roll out Vat in Dubai is by January 2018. Other GCC countries are expected to follow latest by January 2019. It will be introduced at a rate of 5% with exceptions for basic food items, healthcare and education. If your company reports annual revenues of over AED 375,000, then you are compulsorily required to register under the VAT system of GCC. In the first phase, the companies whose revenues fall between AED 187,500 and AED 375,000 will have the option to register for VAT. Eventually, it will become obligatory for all the companies to register for VAT irrespective of their reported revenues. All the businesses still have a window of 5 months to understand the legislation and implementation of VAT before its release. This duration left is relatively short when it comes to preparing for the necessary changes required for the VAT in UAE. However, this will vary from business to business, depending on the nature and size of your business. If it seems complicated to you, feel free to contact us as we also provide vat courses in UAE.

Why should you register under VAT?
Tax Consultancy Dubai

As an experienced Tax consultancy in UAE, we would recommend even if your business does not fall in the above-mentioned turn over slot you should get your business registered under VAT. As and when VAT becomes obligatory your organization will be well equipped and trained to tackle the VAT in future.

You might be a small business now, but you will grow with time. So making your company VAT compliant now is a wise decision. Getting registered under VAT also increase your credibility as a business. Your business will be considered more professional and legitimate.

Why do you need a tax consultant?

There are many preparatory steps are to be taken before the introduction of VAT. A professional help in this scenario is inevitable. You will need constant guidance from tax consultancy in Dubai who has the expertise in understanding taxation.

Reasons to hire a tax consultant: -

Vat is not just about finance: - VAT will not only affect your finance department, but it will have its impact on the core of your business. The departments like logistics, HR, IT, purchase, sales and legal, etc. all will get affected by it. You have to make changes in your core operations and upgrade your technology. Prepare in advance: - All businesses will be given three months before the start date of 1st January 2018 to start the registrations under VAT system. If you are well prepared in advance, this will help in smooth transition and thus you can avoid any business disruption in those three months.

Training your staff: - It is imperative that all your staff ranging from finance, IT, logistics and, sales and purchase understand the comprehensive overview of VAT and its implications. For example, if yours is a Dubai based organization then your staff needs to undergo a tax training in Dubai or better words a VAT training in Dubai to understand and restructure the departments to adjust with changing tax scenario.

Understanding rules and regulations: - It will be beneficial to prepare your organization for the VAT in timely and structured manner. This will help you to have a complete understanding of its implementation without overlooking any areas, which might invite losses. If you miss any input, it might lead to fines, penalties, litigation, etc. and you might have to face unnecessary issues with tax authorities.

A thorough understanding of VAT is vital. As VAT implementation is in early stages most of you have a very blurred idea about it. Getting proper guidance to avoid any hassles is important. There are various VAT implementation companies in Dubai which can guide you. Ours is a well-renowned VAT implementation company in Dubai. Our clientele comes from different industries and we have expert tax advisor in Dubai. So, let us be your tax consultant in Dubai and take care of VAT related things while you focus on your core business.

How can we help you?

Here at DTA International, we are a team of qualified and certified auditors, financial experts and tax consultant in UAE. We are not going to work just as your tax and vat advisor in Dubai or only vat consulting Dubai, but a partner that will work shoulder to shoulder.

Reasons to hire us: -

Tailor made solutions: - It will be our job to understand your business and provide customized solutions well suited to your business requirements. Registration and filing: - We will be handling your registration with tax authorities, and preparing required documents for it. A dedicated team of tax specialist will assist you in proper recording and filing processes to ensure your business don’t incur any penalties for improper compliance.

Providing VAT training in Dubai: - We will provide comprehensive training to your staff on VAT implementation and its overall impact on their work.

VAT planning and Advisory services: - We will be VAT advisor who will guide you and support not just in initial phases of VAT introduction but be with you and keeps you updated with latest developments.

Be proactive: - Our team will help you to create a dynamic strategy and work with you as and when any changes come in the legislation. It’s highly advisable to be proactive and prepare in advance for UAE VAT implementation.

So, it’s highly advisable for your business to be well prepared in advance than making a last minute rush once the VAT is already here. Any fine tuning needed in future can be done later along the way as and when the laws and rules will get published.

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