UAE has always been considered as a hub for investment opportunities. Investors from around the world are attracted to the many new chances of investment which continue to emerge from this place. In 2018 the UAE government imposed VAT ( Value Added Tax) which was the implementation of 5% tax on goods and services. Cost of living in the UAE, at this point, saw a slight rise.
In order to be eligible to pay VAT there is a certain threshold that needs to be met with. While registering for the VAT with the federal tax authorities in dubai it is the individual owner that registers for it with their Emirates ID so accountability falls completely on the individual and not the business entity that he or she owns.
The eligibility to register for vat depends on the company’s turnover. If the turnover of the year is greater than 375000 AED the company has the option to voluntarily register for VAT.
After registration with the FAT of UAE you will need the help of experts to help keep track of your accounting books and that is where the Expert accounting services come in hand. The accountants are generally experienced in 20 years or more of britsh VAT system which is almost similar to the UAE vat system. Vat records are generally required to be kept fo some years yto avoid penalties
Consultants are important when it comes to handling VAT. They help avoid penalties and overlook the documents and figures that are submissited to the FAT. they are well informed about the procedures and requirements of the entire process.
The need for an accounting software
VAT compliant accounting softwares are generally used to help manage invoices, generate bills,and manage all the tax rates and reports.
They make it easier to track your deadlines and have a team of expert accountants that overlook the entire information reports generated.
So unless you have an alternates that exempts you from the VAT having an accounting software and expert accountants helps cater to the financial needs of the company. It helps avoid penalties that are taken as a serious offence by the FTA of UAE.