VAT in Dubai
Value Added Tax in Dubai, VAT advisory in Dubai, Value Added Consultants in Dubai, Vat Accounting in Dubai, VAT Auditors Dubai, VAT Supervision in Dubai, DWC Auditors in Dubai
Essaar & Associates Chartered Accountants have a team of certified VAT Auditors in Dubai. Consult us for VAT Accounting done under supervision of professional VAT practitioners. If you need accurate accounting, then Essaar & Associates Chartered Accountants are the perfect DWC Auditors in Dubai, who do complete TAX Audit of your accounts in compliance with the current regulations as defined by concerned authorities.
VAT is a tax on consumption, which means that it is better than an income tax where it will encourage to reduce consumption and encourage saving. It affects all Businesses, trading, contracting, services, IT etc.
VAT is expected to be introduced at a rate of 5% with some limited exceptions including basic food items, healthcare and education. UAE Government is implementing VAT on 1 January 2018 and other GCC countries may do so at the same time.
While there are a number of challenges that still need to be addressed before it is introduced, VAT will help governments to deliver on long-standing plans for economic diversification away from oil, while still being able to deliver social and economic programmes.
Businesses will have to adapt to the changes by identifying the impact of VAT on their business, and key immediate considerations are to:
• Assess capability of existing systems
• Identify VAT implementation strategy
• Identify contracts that need a VAT action
• Identify intercompany transactions
• Undertake training / awareness
A potential VAT implementation will also have immediate effects on consumer behaviour which gives opportunities for companies to assess their business direction and to plan strategically.
VAT will be introduced in the UAE in two phases. In phase one, companies with recorded revenue of more than AED 375,000/- are obliged to register for VAT. Also during phase one, companies with revenue between AED 187,000/- and AED 375,000/- will have the option to register for VAT. In phase two, all companies will have to register for VAT, however the date is still under discussion. This may indicate the manner in which other GCC countries will phase in VAT
Many businesses are under-prepared and I believe many underestimate the amount of work that needs to be done. VAT is a tax that affects all businesses. There are also some strategic decisions that need to be made in accounting, documentation, purchase, sales etc. Dealing with all this, especially the changes to the IT systems, takes time and the clock is ticking.
If businesses do not leave time to prepare, they risk not being able to comply with the law from day one and may find themselves facing problems with suppliers, customers and unnecessary costs.
We can advise Clients on matters regarding VAT and its implication on your business. If you would like to discuss further please do not hesitate to contact us on Sathyan 050-4577027 / Raveendran 050-6748060.
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