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6 July, 2022

How to choose an authorized VAT services provider agent in Dubai UAE

In January 2018, the UAE implemented a Value Added Tax (VAT), an indirect tax paid services on the supply of goods and services, intending to achieve economic stability, increase government revenue, and assist businesses in improving overall efficiency. The VAT rate is at 5%. Companies in the UAE must register for VAT if the value of their taxable supplies in the previous 12-month period surpassed AED 375,000 or is likely to exceed that threshold in the following 30 days. Voluntary registration is possible if supplies and imports (or expenses in the case of a start-up business) exceed AED 187,500.

After a year of effective VAT implementation in the UAE, the system has presented some issues for UAE businesses in terms of increasing costs. In addition to the implementation costs, as well as the impact on cash flows.

However, by eliminating outdated accounting processes and improving business productivity, it promised to provide long-term benefits. Many VAT services consultants in the UAE help businesses all around the country achieve compliance and efficiency. Competent VAT consultants have the experience and understanding to guide businesses through these problems.

Hiring the right Vat consultant in UAE can provide a wealth of benefits, allowing businesses to achieve their goals and thrive. Since the GCC (Gulf Cooperation Council) adopted the tax system for the first time, qualified Vat consultants in UAE  have been essential for any organization.

VAT Consultant in UAE

Here are some factors to consider, as shown below, that will assist businesses in hiring the finest consultant for their needs

Understanding of tax laws

When it comes to issues involving the processing and administration of VAT concerns in any industry, the rules might be perplexing. A qualified consultant with a thorough understanding of VAT rules would be well-equipped to provide the best advice and assistance to any business. This would be extremely advantageous to businesses, as it would allow them to avoid costly mistakes, errors, and omissions. Furthermore, for organizations with international activities, VAT consultants in UAE that are experienced with international tax computation and rules are the ideal choice.

Experience in the industry

Another crucial prerequisite for businesses is tax experience. VAT consultants in UAE with a lengthy history in the industry and extensive financial knowledge will have a natural flair for swiftly completing tasks such as planning and reporting for the client firm, which is essential for compliance.

Due Diligence and Impact Analysis

Companies should use qualified consultants to do impact analysis and due diligence, which is part of a consultant’s core competency. Vat consultants Dubai with expertise would provide additional assistance by analysing the impact of VAT on all sectors of a firm, including spending, cash flows, and operations. An assessment of the company’s procedures, human capital, new cost projections, accounting system modifications, and compliance would all be part of the impact analysis.

Services supplied

Companies are responsible for rigorously documenting their business income, expenses, and VAT charges. VAT-registered businesses can charge VAT on taxable goods and services, file VAT returns, reclaim VAT paid on business-related items or services, and retain business records. It is when VAT specialists come in handy. Businesses looking to register their company will need advisors who offer a comprehensive range of services rather than those who give limited services, such as computation. Companies would benefit from hiring consultants who provide services, such as registration, calculations, refund consulting, etc.

Final Words

 For tax-registered firms in the UAE, VAT imposed on taxable goods and services is at a rate of 5%. Some goods and services, including education, healthcare, and financial services, may be VAT-free. Without the ‘right to deduct,’ these sales are VAT-free. It implies you won’t be able to deduct the VAT you spent on purchases made in connection with such sales.

Businesses need to have a proper idea about VAT to avoid any further consequences. In case, you need assistance then there are various consultancies catering to these services. One of them is The Corporate Group, with its huge experience, and higher customer satisfaction, it provides you the edge you need for our proper operational functioning.

Frequenty asked Questions

How can I work as a VAT consultant in the UAE?

The individual must have three years of practical experience in taxation, accounting, or the law. The candidate must be fluent in Arabic and English. A Bachelor’s or Master’s degree in taxation, accounting, or law is required. These certificates must be issued by a recognised educational institution.

What is the minimum turnover requirement for VAT registration in the UAE?

The Ministry of Finance announced that businesses with a turnover of AED375,000 must register for value-added tax (VAT), which will be implemented in the UAE on January 1, 2018.

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