Why VAT Consultancy Services required for your business ?
Value Added Tax (VAT) is a new indirect tax that the United Arab Emirates implemented on January 1, 2018, with a rate of 5% on goods and services. By incorporating a new revenue stream in the wake of the oil crisis, the GCC countries‘ VAT policy has the potential to expand their economies. The transition to a more sustainable consumption system will allow for the provision of high-quality public services with this additional revenue stream. It also seeks to lessen the government’s reliance on hydrocarbons like oil for funding. Learn more about the necessity of VAT consultancy services for UAE businesses by reading on.
What is VAT?
Value-added tax, also known as VAT, is a tax levied at every point of sale on the purchase or use of goods and services. The end user will ultimately be the ones bearing the costs. The organizations must gather and report the tax with the assistance of the government. A distribution of products or services by a business in the United Arab Emirates that is subject to either 5% or 0% tax is referred to as a taxable supply. If a supply of such products or services would be taxable if made within the United Arab Emirates, imports are also taken into account.
VAT Consultants' service
Depending on the type of organization, VAT experts offer different services. The following are some typical duties of the VAT agent:
• Control and concerns related to VAT compliance
• Reduce your VAT obligations
• Determine risks and appropriate remedies
• Determine potential avenues for tax planning
• Pay and file the VAT.
• Keep track of and arrange data
• Bookkeeping and Accounting.
• The purveyor company.
• The client company.
Procedure for VAT Registration
In basic terms, a company has a choice between the two VAT registration processes: voluntary registration and mandatory registration. A professional VAT expert assists the company in registering for VAT, taking into account the whole amount of its taxable imports and supplies. The mandatory registration threshold for a firm is set at AED 375,000, whilst the voluntary registration threshold for a corporation is set at AED 187,500. However, foreign organizations are exempt from the necessary registration threshold.
How can You register for VAT?
Businesses can register for VAT through the FTA website’s e-Services portal after creating an account. Through the e-Services portal, the FTA has established a user-friendly, round-the-clock system for filing tax returns and making tax payments.
Getting in touch with a trustworthy VAT consultant in the UAE can assist you with accurately carrying out the different VAT-related tasks, including VAT accounting, VAT registration, VAT deregistration, keeping accurate records for filing VAT returns, tax accounting, tax consultation, VAT impact study, etc., with a better understanding of the VAT procedures. They are aware of the proper procedures to adhere to when registering for UAE VAT. For this reason, IBR GROUP is an excellent choice that businesses can take into consideration in order to comply with the VAT requirements in UAE.
The duties that VAT consultants have
Depending on the situation, a vat consultant’s primary duties may change. Among the main duties of a VAT consultant are the following:
• Maintain accurate accounting and bookkeeping for the organization.
• Full VAT filing responsibilities
• Verify VAT adherence to Federal Regulations in the UAE
Why depend on VAT consultancy Service?
Many firms are unaware of the guidelines governing the computation of VAT and the payment procedure. Getting advice from VAT specialists makes it easier to handle intricate computations, figures, and algorithms. These are some other justifications for using VAT consultants:
1. Greater Knowledge: The most skilled VAT advisors has extensive understanding of the processes, guidelines, and laws pertaining to VAT. The various VAT rates and proper payment calculations can be explained to taxpayers by the VAT specialists who are knowledgeable about VAT laws and regulations.
2. Accuracy: VAT experts go above and beyond, unlike our internal accountant, to ensure that each VAT filing is accurate.
3. Industry Experience: A skilled VAT consultant with years of experience in the field can steer clear of the typical blunders made when registering for VAT, filing returns, and doing other related tasks.
4. Time-saving: Working with a competent VAT consultant will help you save the significant amount of time you spend on risk assessment, VAT analysis, and assessments related to the business.
5. Lower risk: A VAT expert with extensive experience can handle any form of business risk. They can advise you on the best course of action to lessen any possible dangers related to VAT.
6. A better financial process: Careful thought must go into financial computations, appraisals, and evaluations. For financial advice, it is therefore always essential to engage a qualified VAT consultant.
UAE-Based IBR GROUP VAT Consultancy Services
One of the top suppliers of VAT consulting services in the United Arab Emirates, IBR GROUP offers a wide range of VAT-related services, such as:
• Accounting and bookkeeping deductions for VAT
• Examining the Purchase Invoices
• Examining sales invoices to make sure they fit to FTA regulations
• Internal Review of VAT
• Help with filing VAT returns
• Support for the FTA payment procedures
• Consultancy services for VAT
• Registration for VAT
• Instruction in VAT
• Preparing the revenue report for submission to the FTA