Whether it is a mandatory or voluntary cancellation of VAT registration in Dubai or any of the other emirates, it’s likely that you have a rather complicated tax situation. You’ll need a regulated tax agent in the UAE to help you sort out your taxes with the Federal Tax Authority. Being a regulated tax agent in Dubai, a tax professional will help you prepare for the process of VAT deregistration and offer valuable advice you simply can’t get anywhere else.
Tips on Finding the Right Consultant for VAT Deregistration in the UAE
Here are important things, which will help you select the best tax professional suited for your unique needs and circumstances:
Look at the local firms
There are international firms that offer regulated tax consultant services in UAE. However, local firms are still the popular choice not only for VAT deregistration but also tax filing as they offer an extra advantage.
You’ll often find this to be true: local firms have the skills and experience to handle your situation, most especially as they’re capable of relating to local policies. In Dubai, there are a lot of items in the final tax returns which are not applicable to other jurisdictions. A local tax professional will help you with your tax returns and the completion of the VAT cancellation process. There’s a higher possibility of maximizing savings and reduced chances of overpaying the Federal Tax Authority (FTA).
Ask your colleagues
Referrals are also some of the best and easiest ways in finding a trusted tax expert. By asking family members, friends, and other businesses, you’ll get a lot of valuable information. Take note: it’s not just who to hire! You can also ask who you should avoid and the pricing models that are most attractive.
If you can, it’s also best to consider asking a financial advisor. It’s likely that he/she already knows someone, being in the same industry as regulated tax agents. What’s more, if you already have a financial advisor who is helping you run your business operations in the local area, he/she already knows your financial situation. This means the individual understands your taxation needs, and you’ll be pointed in the right direction.
Set up a meeting
Before you make a decision, meet the Tax Consultant in person first. You will need to fully put your trust on your regulated tax agent in Dubai. It is, therefore, necessary that you meet the person. Use this time in asking a couple of important questions, so you get a feel as to the style and personality of the professional.
You need to ensure that he/she understands your needs, especially with regards to cancelling your VAT registration in the UAE. Laying out the cards at the table during the in-person meeting will help ensure the Tax Consultant can handle your specific taxation requirements. It is really important that you assess the credibility of the person. It’s especially true if your business is insolvent, as you’ll need a lot of advice, and you’d have to take them from him/her.
Ask nothing but the right questions
You should ask the kinds of designations and licenses that the professional has, including his/her experience. What you want to know is if the expert has had many successes in deregistering companies of the same situation as you. Ask also if the Tax Consultant has been in business for a while and what his/her specialties are. More importantly, ask about the fees, plus the length of time for the whole process to be accomplished.
If you want, talk about any future plan you might have. Will the potential hire provide advice and assistance in getting you set up for another business idea?
Pros and Cons of Cancelling VAT registration in UAE
From the economic downturn the entire country has experienced due to the recent COVID-19 pandemic, a lot of solvent businesses are considering of closing down. Selling or closing down a business entails VAT deregistration. If you’re considering of voluntarily deregistering for VAT in the UAE, here are advantages and disadvantages to take into careful consideration:
Advantages of VAT deregistration
- No more requirement to keep accounts updated on a regular basis
- VAT receipts won’t have to be obtained and maintained
- Business can maintain VAT-inclusive items without having to remit taxes collected from customers to the FTA
Read also: Is VAT on Insurance Taxable?
Disadvantages of VAT deregistration
- No ability in claiming VAT back from taxes paid on business purchases
- Income has to be monitored regularly to ensure you don’t reach the mandatory VAT registration threshold
- It’s possible for your business to lose out on some business you once had as larger organizations prefer dealing with VAT-registered businesses
To know more about VAT cancellation in the UAE, don’t hesitate to consult with our regulated tax agents here in VAT Registration UAE!