How Experts Help Implement VAT for a Small Business in UAE

Value Added Tax (VAT) was implemented in UAE starting from the 1st of January 2018. VAT is a type of indirect taxation that’s charged in UAE at each level of a supply of products or services. A business in UAE has to take the necessary steps in order to implement VAT into its operations. A regulated tax agent in UAE that’s certified by the Federal Tax Authority (FTA) provides supports to businesses across the region in implementing VAT. 

Businesses in the UAE, whether going through voluntary VAT registration or mandatory VAT registration, have to be guided by experts in order to comply with VAT legislation and in developing an effective and efficient tax strategy. Regulated tax agents in Dubai offers the following for effective VAT implementation in UAE: 

Also Read: What Are The Responsibilities Of Tax Agent In UAE?

Training of Employees and Company Management

In this phase, regulated tax agents train company management and all relevant staff members on the concept of VAT and discuss the type of business together with issues on compliance. Provisions are made in order to train employees from every company department that will be dealing with VAT. 

Understanding the Business Model

VAT experts in UAE can visit your office in order to help you understand your business model that may be impacted by VAT implementation. A regulated tax agent can also discuss with you in formulating a VAT implementation plan that is most suitable for the regulations and for your business. 

Analysis of VAT’s Impact on your Business Operations

Experts can study VAT’s impact on your business, specifically profitability, costing, and working capital. Expert analysis and opinion can also provide management with better clarity on VAT and streamline operations in order to comply with the requirements for taxation. 

Determining the Project Manager or VAT Team Leader

In order to shift transactions into ones that comply fully to VAT in UAE and also in order for a business to function without having to deal with issues due to implementation of VAT, regulated tax agents in UAE will help in the selection of a person or team that will be responsible for the company’s VAT compliance. 

Registration for VAT

As part of the plan in implementing VAT and to comply with relevant regulations pertaining to UAE VAT, experts will provide advice in relation to procedures and formalities that are associated with VAT registration in UAE. If you have hired a reputable firm that offers VAT implementation services in UAE, you will be provided with expert assistance on the entire VAT registration process. 

Selection of the Appropriate Accounting System

The present accounting system of the business will be scrutinized in order to come up with the charts of accounts that are most appropriate or suitable for the business. Necessary guidelines will also be provided to the team of accounts in order to prepare the business for the first filing of VAT returns with the FTA. 

Invoicing with VAT Charges

The requirements for invoicing for VAT and the issuance of credit notes under UAE VAT legislation would also be implemented with the help of experts. The VAT team including IT persons will be given proper guidance. This also includes the sales department who will be dealing with the customers that will be charged with VAT on all applicable purchases of products or services. 

Also Read: Questions And Answers Regarding VAT In UAE

IT Migration

With VAT implementation in UAE, there can be changes to administrative procedures like billing and accounting in order to company with formalities for VAT. The necessary information will be communicated onto the software personnel through the project manager or team for VAT or directly to the IT team. 

Filing of VAT Returns

Support will be provided with the preparation and filing of the VAT return of the business. This is done by taking the right input tax credit and putting it against the VAT liability of the business. This is, of course, crucial to have the expertise of VAT specialists. 

At VAT Registration UAE, we specialize in providing solutions for VAT implementation. Our clients are able to comply with their obligations related to VAT and experience less interruptions with their business operations even with VAT being implemented onto the business processes. If you wish to consult with VAT experts today, don’t hesitate to reach out to us!

Is there an Item that is Exempt from UAE VAT?

Financial services that aren’t conducted for a commission, explicit fee or rebate are exempted. Also, the allotment, issue, or the ownership transfer of debt security and the like are considered as exempt from VAT in UAE. 

What is the Current Rate for VAT in UAE?

The United Arab Emirates has implemented a five percent VAT on all applicable goods and services that are provided in the country. This can be subject to change, so it is best to be kept up-to-date with UAE VAT legislation.