With the recent changes in the United Arab Emirates’ taxation laws including the excise and value-added taxes, it is important to keep you and your company updated. Now, this can be challenging, especially as law, in general, can be complicated. Because of this, the best way to ensure that your business stays up-to-date with taxation laws is to hire an accountant.
If you are looking to register your company for VAT, hiring an accountant, specifically a VAT consultant, is necessary. Not sure why? Read on to find out.
Why Register for VAT?
Prior to registering for VAT, it is important to know why. Basically, a value-added tax is imposed on qualified good and services. These taxes are paid by end-consumers and are collected and accounted for by businesses on behalf of the government.
Companies are required to register for it if their taxable turnover within a 12-month period is more than AED 375,000 or it the taxable turnover is expected to go over the said amount in the next 30 days. If your company does not go over AED 375,000 but is over AED 187,500,
you can voluntarily apply.
How to Register
According to the Federal Tax Authority (FTA), taxable entities or their official representatives can register for value-added tax through the FTA website. This can be done in three steps and is no longer than 20 minutes. You only need to go to www.tax.gov.ae, navigate to E-services and create an account. Keep in mind that you will need to verify your email address
before you can log in and register your company.
When you register, make sure that you have pertinent documents on-hand. This includes your business or trade license, passport or Emirates ID and duplicate copies, and proof of authorization. In case you do not have these on-hand, you can save your application and
resume when you are ready.
Reasons Why You Need a VAT Consultant in Dubai
While the process can be very simple, you want to make sure that you hire a VAT consultant. Here’s why.
· Professional advice – The most important reason to hire these accountants is that they are knowledgeable about taxation laws, especially value-added tax. These professionals will tell you whether or not you need to register, or if voluntarily registering is a smart move.
· Document acquisition – These consultants will also tell you what documents you need to present to move the registration along. Moreover, they will help you acquire the required documents for easier application.
· Peace of mind – Lastly, you want to make sure that there are no lapses in judgement when it comes to your business. These experts will help you eliminate such risks, allowing you to rest assured that the registration will go smoothly.
Registering for value-added tax is the responsibility of every qualified company. If you are required to register for this, hiring a VAT consultant is the best way to start. This way, you do not have to worry as your consultant will advise you on what to do and what you need.