VAT stands for Value added tax. It has recently been made an obligation for businesses in the UAE. A criterion has been defined, and the Government of UAE has specified all the required information on the subject. Continue reading this article to get all the basic knowledge required for registering or paying the VAT.
As a business owner in the UAE, you need to seek professional services from VAT consultants. You can see the services of Best VAT consultancy in Dubai for careful compliance with all local regulations. These professionals help you in all the following aspects of VAT:
Some supplies and goods in your businesses are taxable, while others are not. If the taxable supplies coupled with imports of your business go beyond 375,000 AED. If the supplies and imports of your business cross AED 187,500.
Businesses collect the taxes from their customers and pay to the government, and the government in return, refund the taxes to the businesses-which the businesses have paid to the suppliers.
The federal tax authority of the UAE has its official website up, which you can access at any given time. Any business like yours can register through the eService section. All you need to do is to form an account on the website to login. But things are not as black and white. You must hire professional VAT consultants to deal with all the information that you give out about your business.
It is the consumers who are paying the VAT. Businesses are only collecting it in the shape of five percent of the cost of goods that are taxable according to the regulations of UAE. And when businesses collect it, they pay it over to the government.
The said five percent of VAT is applicable in the step of the supply chain of services as well as the good in the UAE. Even tourists pay for it. As a business owner, five percent of every step can seem too big an amount. Thus take services of a good VAT consultant company, which helps you manage it and prioritize the cash flows accordingly.
Businesses need to file VAT returns with the FTA very frequently in the UAE. The period is sometimes as short as four weeks. But it may vary according to the turnover of each business. Standard period to file returns for businesses with annual turnover lesser than 150 million AED is quarterly, whereas for businesses with a turnover of 150 AED or more is monthly.
The UAE is a business hub, and the fact is undeniable. Many people choose to settle there and open up new businesses. Hence the government’s regulations regarding VAT applicability on businesses affect the massive amount of business owners. But to deal with the technicalities of VAT registration and its procedures, it is only safe to hire professional VAT consultants. Your company must outsource the Best VAT consultancy in Dubai so that there are no troubles in complying with the regulations.
Hire your consultant now and be compliant with all local regulations as a business owner.
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