VAT Compliance in UAE : Value Added Tax has been launched officially in Dubai and now each and every business should make themselves VAT compliance. There are so many things that one has to know about this VAT and it may confuse people. In order to make things simple and easy to understand, we made a curative checklist of all the things that you have to know. This VAT compliance in UAE checklist will help you in various ways..
- Businesses with more than Dh 375,000 annual turnover (Taxable supply) are required to register for VAT on or before the provided deadline. It is important to register for VAT before the deadline or the businesses should pay Dh 20,000 as a penalty. For this task, you can hire VAT consultants in Dubai.
- In general every business activities in UAE will come under VAT and VAT has to be considered in all existing and new contracts. If the businesses failed to do so, then the price of their commodities will be considered as inclusive of VAT.
- According to the VAT law, the companies must file their returns according specific period given to them. The returns filing and tax must be completely done within 28 days at the end of a particular period.
- The staff of every organization should know about all the details regarding the tax filing (be it small or big). This will help them in maintaining proper records and avoid any kind of commotion in the end. The UAE government has provided a lot of guides, blogs and articles regarding the tax filing. Make sure to check them to know about the VAT compliance in UAE , rules, regulations, etc.
- Hiring professional VAT consultants in Dubai is the most important thing for every company. Professional accountants will help you with everything and you don’t have to worry about any kind of mistakes while filing the taxes. These mistakes will indeed become a burden for you and it is always advisable to be pretty careful about them.
- Apart from all of these, it is important to have at least one employee in your office who have sound knowledge about VAT. This will help you in ensuring that you are following all the guidelines according to FTA. Although you train your entire staff regarding the same, having one professional who knows hook and crook of the VAT will aid you in emergencies.
VAT requires your financial transactions, credit claims and your company’s past revenue too. This revenue won’t be charged, it is just to get an idea about your company’s financial history.