Value Added Tax (VAT) is an indirect tax that the government of the United Arab Emirates implemented on January 1, 2018. All the tax-registered companies in the UAE have to pay a rate of 5% on goods and services. By incorporating a VAT service, you ensure all the functions of the business are aligned as per UAE law. AT VAT Accounting, our VAT agents ensure proper VAT compliance through timely filing of VAT, VAT invoice formatting, and other services that will help you achieve your business goals.
VAT Accounting, as the best accounting firm in the UAE, facilitates VAT registration, deregistration, accounting, return filing, and advice services by offering a range of VAT services Dubai.
Businesses now need to reevaluate their business models. Thus, maintaining accurate accounting records will be one of the first things any company must do in order to comply with the laws and regulations of the company. It will be essential to properly document all invoices, outflows, etc. in order to file error-free VAT returns on time. The only way to properly simplify your VAT procedures is to work with a trustworthy and knowledgeable VAT consultant.
It is important to hire a qualified VAT consultant who can assist you with appropriate accounting and Value Added Tax services in the United Arab Emirates. For companies who do not have the internal resources or competencies to support the introduction of VAT, outsourcing all accounting services will be a better alternative.
VAT does not add to the business’s expenses or burdens. Input VAT must always be calculated, as this helps the business to become more aware of the purchase it makes and maintain a proper payment management. Therefore, every organisation will benefit from increased value and cash inflows from careful planning, efficient administration of tax collection, and its execution. Here’s how VAT servicing can help –
- To avoid making mistakes when filing taxes.
- Establish rules to prevent penalties and fines.
- Keep the books of account current for five years.
- To submit a claim for the input tax paid in accordance with the VAT legislation.
- Carries out the tax audit in order to protect the business from substantial misrepresentation.
Companies who disregard the VAT laws and regulations are at risk of fines that could damage their company’s reputation in addition to their goodwill. So, it is advisable to seek help from a reputed and experienced accounting agency such as VAT Accounting.
In addition to offering excellent VAT services in UAE, VAT Accounting also charges a very fair price for Tax Consultancy, Implementation, and Tax Reclaim Services.
VAT Accounting is recognized as the best accounting firm for handling VAT services for both newly founded and well-established companies throughout the Emirates. Along with many more business-related services, VAT Accounting also offers accounting and bookkeeping, accounts outsourcing, internal auditing, and many other services.
Contact us for more information on how we can help you with VAT and other accounting services.
In the financial statements, the VAT collected from the consumers is included as part of the revenue, while the VAT paid while purchasing the product is included as part of the cost of sales (expenses).
VAT output is a liability, as it is counted for the VAT paid on purchase of the product or services, by the company.
VAT that falls under direct tax, is payable to the government. Businesses collect and account for the tax on behalf of the government.