Do You Need to Pay VAT? To Know Check out Here

On 1^st January, 2018, UAE government introduced Value Added Tax (VAT). The introduction of new tax has made a buzz among UAE residents. People are curious to know how this would impact their budget, which businessmen are eligible to register for it, what requirements need to be fulfilled, how to register and several other questions. To deal with all questions and clear all the doubts, there are several consultancies and companies in Dubai which offer VAT Consultation. To have a general understanding about VAT and criteria for registering it, some guide points are provided here. So keep reading on and know about it more.

What is VAT?

VAT is an acronym for Value Added Tax. It is a tax on consumption or use of goods and services levied at every stage (from production to sale). It is an indirect form of tax bore by end customer and collected by businessmen on the behalf of government. It is imposed with the intention of making new source of income for government in order to provide high quality public services and reducing its dependence on oil for revenue collection.

How does VAT affect individuals and businessmen?

For individuals: VAT is applicable to almost all transactions made for goods and services. This will comparatively raise the cost of living and the effect will vary according to the individual’s lifestyle and expenditure. The residents, who use mainly those products and services which are exempt from this or have 0% rate, will be least affected by this tax.

For businessmen: All businessmen have to carefully maintain required documents regarding their income, costs and respective tax charges. Registered businessmen need to collect VAT from all customers according to guidelines and need to pay VAT for the goods and services (they have bought and used) to their suppliers. The difference in amount will be reclaimed by the government.

Criteria to Register for VAT

• According to guidelines, any business receiving yearly turnover of at least AED 375,000 must be registered under VAT. It is mandatory to prepare and file VAT returns and maintain documentation of tax returns for at least 5 years.
• Those businesses also need to register which anticipate that their total value of supplies will exceed the threshold of AED 375,000 in next 30 days.
• However, registering for this tax is optional for businessmen who receive turnover of at least AED 187,500 per annum.
• The businesses which do not have a residence place in UAE have to register under VAT irrespective of the threshold on a mandatory basis.
• The businesses with value of supplies below than AED 187,500 are not allowed to register under this tax.

This little guide about VAT is sufficient to make yourself clear who are allowed to register under VAT and who are not and how is it affecting people’s lives. However, there are many aspects to know in detail about VAT. For that, VAT consultation from professionals is the best solution, as consultants have complete knowledge and are well versed in the whole process.

Hire the Ideal and Best Business accounting solutions Service Provider in Dubai

As an ever-increasing number of organizations open their entryways or set up a site on the Internet consistently, the requirement for dependable, moderate business bookkeeping programming keeps on developing. On the off chance that your organization doesn’t as of now have a decent accounting system, you’re presumably in the market to put resources into one with the goal that less time is spent on attempting to keep the books straight and additional time can be spent fulfilling old clients and finding new ones. Not all accounting frameworks are the equivalent, so set aside the opportunity to think about your requirements previously purchasing.

Private companies need the Basics

Few out of every odd organization needs a total suite of monetary choices that incorporate loads of extravagant accessories. On the off chance that you have a solitary, nearby customer facing facade or office, you’re probably not going to need or utilize a money-related bookkeeping package that is intended for multinational companies. You’ll just be paying for undesirable highlights, which is definitely not a monetarily mindful decision. Make certain you recognize what you don’t require and also what you do require.

An essential accounting program for little organizations will center principally on finance, finance duties, and costs. These bundles normally offer a few sorts of reports notwithstanding standard accounting apparatuses with the goal that you can get a depiction of your costs and finance on interest.

Whole Business Management for Larger Companies

In the event that your association has various areas, offers an extensive variety of items and benefits or is rapidly developing past the requirement for a straightforward finance framework, it’s a great opportunity to consider a package that incorporates a more extensive scope of administration highlights, including POS (purpose of offer) exchange abilities, Customer Relationship Management (CRM) arrangements, stock control and Enterprise Resource Planning (ERP).

Meeting E-Commerce Needs with Business Accounting Software

Web-based business foundations confront an assortment of one of the kind difficulties, and utilizing business bookkeeping programming that meets web-based business needs is especially vital for online achievement.

Think about the Cloud

The last decision you’ll need to make is whether to put resources into a total bookkeeping framework that is completely independent on your intranet and in-house servers or a cloud-based framework. On the off chance that you have reams of information to store and utilize, the exhaustive idea of a cloud-based framework might be your most solid option. You’ll get for all intents and purposes boundless information stockpiling and memory.

The best bundle for your organization will be the one that addresses your issues now and that can be extended later on as your organization develops. To know more, you can get in touch with the best Business accounting solutions provider in Dubai. They will have the capacity to look at highlights and give you a legit evaluation of your needs.

The Significance of Bookkeeping Software

Booking is the procedure for gathering information about the consumers. The booking keeping software is dedicated to manage & process the financial data. The reliable bookkeeping software will have its share of problems. A customized software solution will simplify the accounting procedures. Make the computers better accountant than humans and it provides the accurate processing of transactions. The bookkeeping technology is vital for corporations and it helps to address the time-consuming paperwork. Contact the specialists who can do the job for you at the earliest with accurate results.

 The bookkeeping software will be helpful for small and large size companies. Most people find doing the bookkeeping for their small business a headache, but it is important to keep the records for future purposes. A good software package is flexible and user-friendly. A good software package facilitates the online queries, transaction validation, and error-searching.

Here are the advantages of the bookkeeping software –

• It helps simple entry of data. It is a fast and straightforward process that requires the addition of data only once.
• It enables fast processing of data. It avoids delays like in between the sales and invoice.
• The software helps the automation of reports like profit & loss, debtors & creditors, customer accounts, forecasting, and sales.
• It helps the automation of tasks like calculating pay, VAT and producing pay slips.
• The software allows integration with other systems like online banking and e-filing.

What is the need for accounting software?

The bookkeeping software helps the saving of time and money. The user can choose the software for small businesses and it will help to save time and stop getting in a mess. The software helps the control of cash flow and it helps create invoices to keep track of the customers. The software will also help record the money spent and the money received in the relevant columns. The high-quality records make the accountant’s job easier. The software uses the programs to govern accounts and automate systematic operations, while certain systems are also enabled to record accounting data.

All types of businesses benefit from the accounting software. The businesses will be able to manage the businesses successfully without some sort of an accounting system. Small or large businesses are probably like to use manual accounts or a combination of computerized systems until the accounting needs become more complex. Make sure that the companies use the software before deciding on the accounting system that suits the business in the best way.

Know the Procedure of VAT Registration in UAE

The Value Added Tax (VAT) will be dynamic in UAE and other GCC nations from the year 2018; we see that it is so vital to get ready for it. The Value Added Tax (VAT) will be dynamic in UAE and other GCC nations from 2018; we see that it is so critical to get ready for it.

The Ministry of Finance, UAE has proposed organizations, to begin with, the procedure of VAT registration. Since the organizations and people will manage the esteem included assessment out of the blue, we have given underneath our understanding VAT Registration in UAE will be an online procedure utilizing e-administrations. The official site of the Ministry of Finance, UAE will offer e-benefit for the organizations to get registered. The certificate of VAT will be presented on the organizations after the issue.

What is the strategy for Online VAT Registration?

• The online VAT registration process will be completed at the official website of the Ministry of Finance. The methodology in succession as given beneath:
• Visit the official site of the Ministry of Finance at https://eservices.tax.gov.ae/en-us/
• Tap the choice for VAT testament to achieve another page.
• Take after the choice of ‘Begin Service’ by clicking it.
• Finish the registration procedure and make your interesting login id and watchword.
• As you prevail with the user-id and secret key creation, you would now be able to log in and achieve the client presentation page.
• Tap the alternative for ‘Make another duty ask’.
• Top off all the required points of interest at the following stage.
• In the wake of presenting the points of interest, you will be coordinated to the installment entryway.
• You may pay the online expenses for VAT registration system in Dubai utilizing e-Dirham G2 cards, non-dirham cards, and e-wallet.

VAT Registration Fee Payment:

As the registration system is on the web, it is compulsory to pay the expenses online before finishing the technique. Furthermore, once it is paid, you will get an affirmation or affirmation receipt. The esteem included assessment will be charged at the 5% rate on every one of the merchandise and enterprises aside from sustenance things, wellbeing and medicinal administrations. At the point when the primary period of the execution is taken off, independent ventures will be exempted from the VAT.

In case you need more information about VAT registration procedure or you need an expert organization who offers you the ideal and best VAT registration service, at the point you can do a good research on the web. There is a company who provide the best and reliable VAT registration in the best and possible time in the affordable rate. They have certified professionals who assist you and they will give brief information about VAT and its procedures. They will handle all the work by their hand and provide your VAT number in a given time frame.

How VAT Impacts the Businesses in the UAE

VAT or Value-Added Tax is the consumption tax placed on a product whenever a value is added at each stage of the supply chain. There are new VAT regulations in place in the UAE from the month of January. These regulations have let business owners across the Emirates bracing for a big chance. UAE historically had one of the simplest taxation systems in the world, but recently the government has decided to raise the tax revenue in order to reduce its reliance on oil-generated revenue and invest more in the infrastructure of the economy. Contacting a consultant for VAT implementation in UAE can be the next big decision for a business.

What is VAT and how does it work?

It is the form of tax that is applied to the consumption of goods and services. The tax is applied also on the importation of goods. VAT is levied by VAT registered businesses at each stage in the supply chain. Businesses collect the information on behalf of the Government. But there are exceptions on the transport of certain goods and services like basic food items, essential medicines, and export of goods & international services.

The businesses or companies need to focus on how VAT impacts the operating models that include end customer pricing, transition periods, supply chain arrangements, and other aspects. The consumer is coming at the end of each stage of supply chain and the tax incurred by the end consumer. There can be negative VAT affects on the business if the value-added tax system is not implemented correctly. The VAT consultants can help the businesses understand and plan the implications from the VAT.

The effect of VAT on Businesses in UAE

The new VAT rules in UAE raises a number of challenges for the businesses and enterprises. Here are the concerned areas of the businesses in the UAE –

The increase of cost

The businesses essentially have an extra function to perform with the new VAT laws. The laws are here with an unavoidable set of admin and implementation costs.

Changes incurred to the business structure

VAT will be charged at each stage of production and distribution, aside from having a significant cash flow impact on some enterprises.

Being accountable

It is needed to prepare and keep a range of business records legally, once you are VAT-registered. The authorities will be looking for annual accounts, purchase daybooks, invoices received & issued, and the card notes.

No certainty of the future

The companies in the UAE are concerned as there might be a rise in the future. This prospect is creating uncertainty for both businesses and consumers in the UAE.

It is important that businesses contact a VAT consulting company in the UAE for assessing the impacts that include the company structure, operations, and systems to control costs. Contact the experts who can help the businesses comply with the objectives in the best possible manner.

Locate the Appropriate and Best VAT Consulting Services in UAE

In legal strategies, understanding the necessities of legal services and having an accomplished legal counselor has turned out to be a standout amongst the most critical choices. The legitimate framework in India is diverse and makes it complex for a typical man to take appropriate choices without the assistance of a specialist.

Choosing VAT Consultancy Services UAE is regularly a troublesome assignment. Organizations in UAE have different legal counselors according to their subject of specialization. Attorneys in UAE can bolster you in different legal issues. Law offices always give arrangements on confounded legitimate issues.

Their competency lies in the extraordinary execution of their partner legal advisors. UAE attorneys have inside and out learned of laws and give legitimate answers for particular issues of customers according to as far as anyone is concerned, involvement and capacities in use of the law.

VAT expert in UAE are simply not constrained to exhort the clients but rather likewise does utilization of most recent VAT laws and standards to help the customers. They help such that the two prerequisites as for charge laws and hierarchical objectives are met in the most productive and viable way.

Bookkeeping is presumably a standout amongst the most loved subjects to study and employment segments to work in. Bookkeeping segment has given a lot of openings for work to individuals over the previous decade.

Bookkeeping firms in UAE have dependably been at the front line of helping individuals as far as their tax assessment issues and monetary liabilities. These organizations likewise track, sort out and refresh your monetary obligations, for example, installment of your duty.

VAT Consultancy Services UAE likewise has a reputation of positive audits and has essential involvement in the concerned areas. These organizations have proficient representatives which are the fundamental mainstays of the organization and without them, the firm can’t work legitimately.

Bookkeeping firms enlist representatives having ability regarding the matter and know-how to manage such things. VAT advisor in UAE has the aptitude for understanding your business needs to perceive the worldwide VAT issues and deals with these in a flourishing and functional way.

The VAT advisors in UAE gives consultancy which has different advantages, for example, prompt cost investment funds and ROI, the straightforwardness of VAT chance regions, VAT hazard service and functional approach adapted to boost the VAT reserve funds.

UAE Lawyers have work in relationship with different famous firms and eminent legal counselors on changed ventures and have additionally effectively done the legitimate procedure service services.

UAE has turned into a center point for bookkeeping firms and individuals originate from the whole way across the nation to deal with their legitimate issues.

VAT advisor in UAE has the ability in understanding your business needs to perceive the universal VAT issues and deals with these in a flourishing and down to earth way.

The VAT specialists in UAE gives consultancy which has differing advantages, for example, prompt cost investment funds and ROI, the straightforwardness of VAT hazard zones, VAT chance service and down to earth approach equipped to augment the VAT reserve funds.

UAE Lawyers have work in relationship with different eminent firms and famous legal counselors on shifted extend and have likewise effectively completed the legitimate procedure service services.

Here’s All You Should Know about VAT in UAE and Its Accounting

Not everyone in this world knows all about value-added taxation and its accounting, but it can be regressive if you remain unknown about it if you are a taxpayer especially a VAT payer. The more knowledge you get about it the more beneficial it is for you. In this blog, I have concluded some of the major facts and essential things which you should know about value added tax and its accounting.

VAT registration criteria: If you own a business and your revenue on supplies and imports is greater than AED 375,000 per year, then you are strictly supposed to file VAT. If your revenue on imports and supplies is greater than AED 187,500 per year then it is your choice to file VAT or not. The collection of tax from customers should be paid to the government however at the same time the government will refund the tax to the business which they have paid to the suppliers.

The business owners which come under the condition of paying VAT are subjected to create an account and register themselves on the official website of Federal Tax Authority through the section – e-services. However, as the business- owners tend to be busy with so many procedures, meetings, and operations, it is advised to appoint one of the best Dubai VAT Consultants who would be reliable and capable of taking care of your VAT accounting.

VAT is commonly applied to all the businesses that are tax-registered and managed on the mainland and free zones of UAE. It is totally tax-free if the transfer of goods is operated between the decided designated zones. All the taxable people and business which are VAT registered must submit a VAT return at the end of every tax period to FTA (Federal Tax Authority).

The difference between the input tax (VAT incurred on purchases) recoverable for a given tax period and the output tax payable (VAT charged on supplies of goods and services) for the same tax period defines the VAT liability. When the output tax amount exceeds over the input tax, the difference should be paid to FTA and in case the input tax exceeds the amount of output tax, the excess input tax will be recovered.

 It is mandatory to read all the tax returns related information and confirm yourself that your business meets all the VAT returns requirements. A business owner must file the tax return on the online portal of FTA. In case of failure to file a tax return within a specified timeframe, would lead you to be a VAT violator and you would be considered as liable for fines and penalties according to the norms and laws of Cabinet resolution number 40 on administrative penalties for violations of tax laws in the UAE.

How Will A Professional Tax Advisor Guide You In Taxing Services?

A specialized tax advisor will assist you in minimizing any tax liabilities and at the same time also assist you in maximizing the return. The stress put on deductions, retreat savings plans, and tax credits are done competently to make your tax return the slightest unconstructively affected. Not being talented enough to pay your taxes properly is one of the awful debts you can probably create. Your tax advisor in Dubai UAE will help you in chalking out a reimbursement plan with the taxing services. Preparing an Offer in cooperation may be the most excellent advice you can catch from your tax advisor.

Unsettled money with the taxing services is a debt which will necessitate payment. The lone way it will go missing is if the taxing service takes a decision to dismiss it. This will not come about by any liquidation or by overlooking to pay. The taxing services in all the countries are willing to work with people, particularly at this time period of monetary hardship. One of the most excellent ways to work with the taxing services is through their bid in cooperation.

This proposal from the taxing services will help you in settling down your tax debt for far less than the complete amount you owe. This is a lawful option when you are unable to pay the complete tax liability for the reason that you are facing financial hardships. The taxing services will bother about your capability to pay, your present income, operating cost and possessions. Your paramount bet to getting any type of assistance is to get in touch with the taxing services yourself. And this is where you can use your tax advisor as a guide or reference.

To remind you again, tax debt is a subject that will be heading to the governing body. Right now, the lone public tax debt that will come up on your credit report is if the tax services position a tax lien against you. The report that will be sent further will change the laws for tax debt reporting. Tax debt reported to the credit bureau will ravage credit scores for a lot of people.

Here are the points that the Government Accounting Office is an expectation to add, from altering this law.

* People will take the interest in paying off their taxes back.

* People will be less fitting to fall into arrears with the taxing services, knowing that it will perhaps have an effect on their credit.

There are a lot of other issues which will require working out in order for this suggestion to go any further. Only if you have hired a good tax specialist for yourself, they will be able to explain you the best how are these laws going to work for the benefit of you;

* What all are the debts that will be reported?

* Will there be the lowest amount due before it is reported?

* How do you validate the correctness of the information reported by the credit bureau?

* Will reporting the tax debt assure collections?

The best you can do to ensure that you do not have debts lingering on to your accounts is to find yourself a professional tax advisor who will take care of all your taxing needs.

Expert UAE Vat Consultancy Service Answers Your Most Pressing Questions

The recent introduction of VAT by Ministry of Finance in UAE has introduced a new spin in corporate financial management. From 1^st January 2018, Federal Tax Authority requires all companies with a turnover of AED375, 000 or more per year to register and file for VAT. All financial documents must be prepared promptly and filed to avoid conflicts with the law.

There are penalties that will come with failure to file the returns or filing the wrong figures. Your cash flow may be affected by the government imposing penalties that would make your operations more expensive. Here are a few issues you need to know about the VAT to avoid conflicts with the law and penalties on your operations.

Differentiate between Sales Tax and VAT

Sales tax is only levied on goods at the final step of the sale. VAT, on the other hand, affects all goods and services through the process of production. This means that you will get a single tax on sales while VAT requires evaluation at every point during the process of production.

How will VAT be collected?

The responsibility to collect VAT lies with individual businesses. This makes the businesses agents of the collecting VAT. As such, you must know the amount to collect and also submit it with a great deal of accuracy. In case the government finds that some finances have not been collected or declared, your business will be in trouble. Engage expert VAT Consultancy Service to ensure that your financial filing and records are compliant with government demands. With the assistance of experts, your records will be accurate and therefore save your business from government-imposed penalties.

Responsibilities for Businesses over VAT.

All businesses have the responsibility to charge and remit VAT on behalf of the government. The responsibilities are as follows.

• Every business must charge VAT on all goods and services that are taxable. To avoid double taxation, an expert on VAT will guide you on the steps to take to ensure that you comply with the law.
• A business can reclaim from the client any VAT paid on behalf of clients. This is usually in situations where a business has already paid the tax.
• Maintain proper and comprehensive records to enable the government to evaluate your payments. These records can be accessed any time the government wants to verify whether you have made the correct VAT payments.

Actions that would lead to Penalties

The government will find you in contempt and even penalize you for the following offenses, among others.

• Failure or refusal to register your business for VAT while it is eligible for registration.
• Submitting inaccurate VAT or failing to submit the money at all.
• Failing to preserve proper records of VAT as required by the law. These are the records used to verify whether you paid the requisite amounts.
• Evading tax

The new laws on VAT are bound to challenge financial flow and management for your business. An expert from VAT Consultancy Service evaluate your responsibilities to ensure that you comply with the law. The consultant ensures that your business operations are free of penalties for breach of legal requirements.

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