As a businessman, you just successfully finished your company formation in Dubai. Not only have you become an operational entity, but your transactions have started to increase in volume and you are now supposed to submit your Value Added Tax (VAT) returns.
Where do you start?
What are the roadblocks you face?
How can a corporate service provider help you?
VAT Consultancy in Dubai: What does VAT mean?
Since the introduction of the VAT Law in the UAE in January 2018 and subsequently the wider GCC, all companies and organizations are required by law to abide by these new set rules and implement them accordingly.
A corporate consultancy service provider (like Corporate Business Services) can thus help you establish the many dos and don’ts and guide you through the sometimes tedious process. We focused on the benefits of a corporate service provider in our earlier blog.
For VAT, why is there a need for corporate services in Dubai?
VAT rules can be quite complex and its implications are not always clear. Implementation of VAT needs careful and well-thought-out planning for its success. A dedicated team of VAT specialists should help you consider every stage of the implementation process. It is important to note that venturing into the vast world of VAT on your own, while possible, is advised against as there is a higher chance of errors and lapses in the different processes for first-timers. The VAT regulations only apply to businesses that exceeds the mandatory threshold limit of AED 375,000. In light of this, VAT laws may not apply to you if you have a startup or small business. Being prepared for all the possible outcomes is essential as there can be monetary and legal drawbacks for non-compliance (can be treated as fraud), whether intentional or out of ignorance of the law. This further enforces the reasons for employing a VAT consultancy in Dubai.
What services do I get under VAT Consultancy in Dubai?
Typically, VAT consultants assist and guide customers through the entire process, from registration to auditing, reducing liabilities and addressing any compliance issues, and so on. In addition, they can employ strategies to reduce VAT/duty liabilities where possible within the legislative framework. These are just some of the benefits hiring a VAT consultant will provide for your business. In many cases, hiring a VAT consultant can prove greatly beneficial to the company, as not only can it avoid penalties for non-compliance, but also reduce unnecessary expenditure within the company, essentially streamlining it. Through their expertise, VAT consultants can in turn also assist the company’s tax accountants and finance department. VAT consultants almost always directly affect a company’s bottom line and that can prove immensely beneficial, especially in times of a recession. After all, a company’s key objective is profit maximization and the best way is optimization.
What are the potential pitfalls of not employing a corporate consultancy service provider?
While an individual with experience in the finance industry and chartered accountancy can manage the VAT process for a smaller company, it can become overwhelming very fast if it is for a larger company. A single person will find it almost impossible to execute all the steps required for correct VAT filing. Multiple people in conjunction are required to work on the VAT process for a company, only then can the experts come to a conclusion. Along with this, VAT consultants often also have the most up-to-date information on VAT laws in the UAE, which again prevents any risk that the company may incur from VAT. As with any tax filing process, VAT is time-consuming and can detract the company from focusing on other important company objectives. The time saved from outsourcing the VAT process can be of immense value to the company. In addition, since VAT consultants do all the work for you, all records and paperwork are professionally handled by them, leaving less work for the company. This leaves the company ready for any internal or external audits as records are always available on hand.
Going forward, VAT consultants provide different techniques that help a company plan its VAT filing system better, with audit-ready records and a world-class filing system. This efficient method of dealing with VAT will help a company stay ahead of the competition as there are less liabilities to deal with as a whole.
How can a corporate consultancy service provider help my business?
Professionals like CBS can perform VAT impact assessment and structure your business in the most tax-efficient manner with respect to the utilization/refund of input VAT and in accordance with federal tax authorities (FTA) requirements. All businesses are required to maintain their books of accounts and will have to conduct an audit for the financial statements for tax purposes. Utilizing these services also benefits the customer with a professional approach in planning and executing the audit assignment, not to mention extensive experience in this field.
Companies that provide VAT consultancy in Dubai can help streamline your recording and filing processes to ensure that your company does not incur any penalties from improper compliance. In addition, they identify the potential financial challenges you might face in the implementation of VAT. A dedicated VAT consultant who updates you on the latest developments regarding legislation can also be assigned if required. The following is what VAT advisory services in Dubai primarily help in:
Evaluate & Plan
Business Impact Assessment, review of key documents like existing contracts and incorporation of VAT clauses in the existing and new contracts and related documents.
Design Develop & Train
Advise, develop and assist in restructuring transactions, supply chain and other related processes, advise and support for required changes in the IT systems and applications.
Implementation & Compliance
Assist in VAT registrations and in the preparation and filing of VAT returns. Align compliance practices with VAT requisites.
Contact us at +971 (0) 4404 8787 for a free consultation session on how to maximize your business benefits with CBS VAT Consultancy