Vat in UAE
VAT is a relatively new concept for businesses in the UAE and that’s why demand for VAT accountants has risen in the trade hub of the Middle East. While the UAE government is very proactive in apprising businesses about VAT guidelines, truth is that accounting for VAT can still be an energy-sapping and time-consuming endeavor – and the cost of any mistakes or errors can be high. Failure to comply with VAT guidelines in the UAE can result in hefty fines and penalties for your business.
Because of this, businesses in Dubai have taken to hiring the services of accounting firms in Dubai. A professional and experienced VAT accountant can help your business comply with VAT registration rules and VAT returns as well as VAT bookkeeping.
Before you pick an accounting firm in Dubai, you need to develop a basic understanding of VAT in the UAE. That’s why we have created this brief guide to VAT processes. So, lets go over some of the most important VAT rules in the UAE:
1) VAT Registration and De-Registration
If your turnover is more than AED 375,000 per year, you must register for VAT. If your turnover for the year is under AED 375,000, you are allowed to de-register or apply for voluntary registration. Since VAT registration is a complicated and lengthy process, its recommended that you pick one of the accounting and auditing companies in Dubai to handle this process.
2) VAT Records
It is your legal and mandatory obligation to keep accurate VAT records regarding any tax paid or received. You need to keep these records for a fixed number of years and your business might be fined heavily if your financial records are not updated.
3) VAT Responsibilities
Hiring one of the leading accounting firms in Dubai can also help you understand and fulfill your VAT responsibilities in a better manner. One of your VAT responsibilities is to collect VAT from customers on behalf of the government and keep updated records of your transactional history.
4) VAT Exemption
If you have an alternate license in the UAE (LLC or Freezone) and do not function in Dubai and obtain all profits from outside UAE, then you may qualify for exemption from VAT, but you nevertheless MUST practice for this through the FTA.
Looking for Accounting Firms in Dubai?
We are at your service! Profits Plus Accountants is one of the top accounting and auditing companies in Dubai. Our expert and professional British VAT accountants have ample experience in assisting both business in the UAE and those abroad with their accounting processes. Visit www.profitsplus.ae to get help from a professional VAT accountant.