Why hire a VAT Consultant for your Business in the UAE

VAT is a form of indirect goods and services tax levied that came into effect on 1st January 2018. The introduction was part of the GCC member countries’ effort to lower their dependence on income from oil. The standard rate of VAT charged is 5%, with a 0% rate and VAT exemptions for certain operations and sectors. 

Businesses fall under two VAT registration categories: 

• Mandatory registration – Required if your total turnover exceeds AED 375,000. 

• Voluntary registration – Available if your turnover exceeds AED 187,500 but is below AED 375,000. 

A VAT consultant can help assess your eligibility and guide you through the registration process seamlessly. 

• Expert Navigation Through the VAT System  

The FTA has set up a simple online portal to set up an account, provide all required information, and pay VAT. The e-service gateway is built and structured in a way to enable an easy and seamless process. Though this gateway simplifies the procedure, the setup of an account and providing all required information accurately can be a hassle, especially when you start off. Having a VAT consultant helps you handle everything from start to finish and takes the load off you. 

• Save Time and Reduce Hassle 

To successfully comply with the VAT requirements and file a return, there must be VAT assessments, risk estimations, and other complex procedures carried out. These steps can be lengthy and tedious. Having an expert take over will save you a lot of time; write these steps. VAT consultant provide professional guidance to help businesses cope without letting their core operations get affected. 

• Access to Industry Expertise 

Tax Professionals know the ins and outs of taxes. Even before the introduction of VAT, they were the most acquainted and prepared for it, anticipating an introduction. Thus, you can go about your business stress-free when you have professionals take over and ensure all the requirements are met and taken care of by the VAT consultant representing you. 

• Identifying and Managing Risks 

An expert can help you spot and avoid risks that are associated with VAT. Their expertise allows them to tackle all forms of possible risks you can deal with as a company in the UAE. 

• Ensuring Full Compliance with UAE VAT Laws 

Local VAT consultants in the UAE who are well-versed in the local tax legislation will ensure that your company follows all rules and regulations laid down by the FTA. This will allow you to carry on with your functioning without putting your business at the risk of non-compliance consequences. They will also be alert and act quickly to realign your organization to any changes in the rules and regulations that come into effect without affecting operations. 

• Let you focus on your core 

When you have a professional who is knowledgeable about all the facets of VAT taking care of it and promptly acting on any latest changes or updates, the time and energy it saves you will allow you to work on doing exactly what you started off doing. You will run your business and grow it while not having to worry about your taxes and probable penalties. 

• Hassle-Free VAT Filing 

Filing VAT returns requires careful attention to detail.  You need to have records of all VAT transactions you have charged and paid for and submit these on exact dates as required. These include declarations of standard-rated items, zero-rated items, exempt items, imports, reversal charge activities, and so on. To be able to submit all this information accurately and on time, there need to be efficient systems in place to record and maintain this. A VAT consultant or team would do this for you. 

• Maximizing VAT Refunds 

When the input VAT exceeds the output VAT, you can claim the difference as a refund from the FTA. To claim this, you must produce accurate calculations and supporting documentation. Thus, if you have experts who meticulously handle VAT data for you, you can maximize the refund you obtain without having to worry about losing out on it due to gaps in dealing with VAT data. 

 Simplify VAT compliance with Kitaab. A VAT consultant ensures seamless compliance, helps you avoid penalties, and enhances your financial efficiency. Get expert support from our trusted VAT consultant today! Disclaimer: Content posted is for informational & knowledge sharing purposes only and is not intended to be a substitute for professional advice related to tax, finance, legal, compliance or accounting. No warranty whatsoever is made in this regard, and it is not intended to provide and should not be relied on for tax/ finance/ legal/ compliance or accounting advice. The content posted is subject to future amendments / changes / clarifications in the regulation by the authorities. For any clarifications, you may contact our finance, tax, compliance, legal team.