Running a small business in UAE is difficult enough without considering the complexity of having to file VAT returns (tax return filing) on a regular basis. What we always recommend is working with a team of seasoned experts throughout the year and not only when preparing for VAT returns filing in UAE. Making financial decisions and no financial adviser or regulated tax agent in the UAE helps out can put a business at risk. What’s more, it can cost more money down the line.
Best Practices for UAE Small Businesses to Prepare for Value-Added Tax Return Filing:
Check the Numbers Twice
IF you are preparing the tax return for your business yourself, then the numbers, including all other information on the tax return must be checked twice. When submitting erroneous information to the local tax authorities, it can delay the tax refund until a tax officer straightens the situation and determines the amount of refund that’s available for the business or the amount of money the business owes to the authorities.
The same is true for tax deduction claims that a business does not qualify for even when it thinks it does. It is usually an incredible idea to consult with an expert prior to claiming deductions in order to make sure that your business is eligible, most especially if you are preparing the tax returns yourself.
You’ll be able to save yourself a lot of aggravation simply by seeking the help of regulated tax agents in Dubai or anywhere in UAE. A lot of service providers in the country are competing to walk you through the business’ tax situation. Experts can help by breaking down every single scenario into very simple questions. When you provide them with your information including financial records related to VAT, a team of experts will be able to prepare your tax returns for you.
Read also: Frequently Asked Questions About VAT In UAE
Ask for Help
Always ask for help, especially when the tax authorities are requiring you to discuss your business’ tax returns with their tax officers. You would want experts to represent on your behalf. Tax professionals can talk with the FTA about any concerns or questions they may have about the tax returns filed.
If you appoint a tax professional to help you and pay a fee, the FTA must have to identify the information of the professional. The expert will be asked in signing and dating the tax return.
A regulated tax agent in UAE can help with VAT returns filing but a good specialist can also provide advice on growing your small business. Seek the advice of the expert so you can determine the best scenarios for your business. Being your partner, the expert can tell you whether or not it’s a good idea to purchase a small space rather than rent your business premises in order to save money.
Make sure that your signature is on everything. Surprisingly enough, lots of people forget signing their VAT returns. This is very important. You are required in signing your tax returns as your signature will indicate that you are effectively declaring under perjury penalty that all the information you have submitted and contained in the tax returns is true and accurate.
You won’t be able to cross out the statement for perjury above the line for your signature. If you refuse in signing the document, the tax returns won’t be processed by the local authorities. This is especially the case if you tamper with the statement of perjury. You must also add a date on the tax return, as well as the date of the day you’ll be signing the document.
Also, financial records that may be required by the FTA will have to be signed to be true and accurate.
This may seem very obvious; however, as any regulated tax agent in Dubai would attest, there is a need for it to be said. You need to ensure you are organized and you don’t leave the process of tax return filing in UAE up to the very last minute. Especially when relevant documents and financial records are hard to gather and collect. A lot of people wait until the deadline before they give relevant information for the preparation of tax returns.
When done earlier in a fiscal year, it’s going to facilitate tax return preparations sooner and a business can plan for the settlement of tax liability.
As with all legal processes, VAT returns filing is crucial to be done with the help of experts. Consult with our seasoned professionals here in VAT Registration UAE today! Our team can help you save money from fines and penalties you may incur from violations, errors, or omissions in the tax return filing process.