Why Hire Vat Consultancy in Dubai for VAT Accounting?

Nov 11 14:59 2019 Bruce Markey Print This Article

The VAT is a type of business tax levied by the government on the sales of goods and services. It comes into effect in Dubai from January 1, 2018. That’s why the majority of businesses don’t have much knowledge about it.

The value-added tax system is not complex to understand but difficult to manage. That’s why businesses eligible for VAT hire VAT consultancy in Dubai to manage VAT operations.

Implementing VAT involves VAT registration,Guest Posting VAT implementation, VAT accounting, VAT audit, VAT filing, and managing post-implementation operations. Unless you are an expert in it, you cannot manage it.
Hiring VAT consultancy to implement and ensure compliance of VAT has numerous benefits. Let’s have a look at some of them.

1. Implement VAT

Not all businesses require paying VAT. If your business is VAT eligible, you have to register your business for VAT with the tax authorities of Dubai. A VAT consultancy provides assistance to businesses for registration. Once your firm is VAT registered, your VAT consultancy helps you implement the VAT. Implementing VAT involves structuring transaction flows, creating an operating model for the entity, assisting in aligning business practices with VAT regulations, selection of accounting software, and assisting through the initial phase. Implementing VAT without the help of VAT consultancy could be a mammoth task.

2. Manage VAT accounting operations

The VAT system is a transaction-based taxation system that requires accurate recording of revenue, costs, output VAT, input VAT, etc. A good accounting system with proper controls helps to identify the impact of VAT on each transaction. A vat consultancy maintains accurate book account in compliance with VAT laws. Account keeping includes recording important information such as the rate and amount of VAT taxable on merchandise and the rate of the merchandise before adding VAT. Your consultancy maintains proper documentation and keeps the original copies of the invoices you receive from your traders to help you reclaim any extra tax you have paid during these transactions.

3. File VAT return and recover VAT

A vat consultancy calculates the amount of VAT return. The basic principle behind VAT return is VAT you pay on goods should roughly balance VAT you receive from customers. There are many legal ways that can help you recover VAT. A vat consultancy has years of experience and ability to find VAT recovery opportunities for its clients. They have the high-end expertise of recording, filing, and reporting the VAT for your business. By appropriate recording and filing, a vat consultancy in Dubai ensures that clients pay only the minimum amount of tax without violating any laws or triggering damage to its clients’ relationship with the UAE government.

4. Ensure VAT compliance

A VAT consultancy provides you a 360-degree solution. It offers you services ranging from VAT registration to VAT accounting, VAT implementation, VAT compliance, and post-implementation services. So you don’t have to worry about VAT compliance, which is the major concern for the businesses. Your VAT consultancy takes responsibility for VAT compliance.

So these are the four key benefits of hiring VAT consultancy in Dubai.

Source: Free Guest Posting Articles from ArticlesFactory.com

About Article Author

Bruce Markey
Bruce Markey

Ethics Plus is one of the leading accounting companies in Dubai offering accounting, auditing, VAT advisory, CFO and other advisory services to multi-national companies, small and medium-sized enterprises and individuals. The firm has DMCC approved auditors and experienced CAs. To know more, visit https://ethicsplusuae.com/.

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