Value-added tax or VAT is a consumption tax on a product that has been set @ 5 % on a host of products, but certain goods do not fall under its purview and enjoy the holiday viz., basic consumer goods, healthcare, and education, etc.
The VAT regulations declared by the local regulatory authorities gave clarity for investors and companies in the UAE and across the Gulf countries. The new regulation allocates responsibilities to eligible resident taxable persons including non-residents, investors and their agents, including nominated representatives with a mandate to register and ensure compliance indicated by the authorities.
Important points to be considered on VAT law
Step 1: VAT advisory services comprise of:
Step 2: VAT Implementation:
SQI Accounting’s finance and taxation team would guide implement changes, based on the outcome of the 1st step, in the IT systems of your organization.
For small SMEs, SQI Accounting is competent to provide through outsourced accounting services, a framework of simple accounting systems and implementation of VAT rules.
For larger SMEs, in order to strengthen your finance team and organization, we can assist with the implementation and offer outsourced CFO or Finance Manager Services on a monthly basis.
Step 3: VAT training and post-implementation support
Transition or shift to other systems is difficult. A bespoke VAT training system from SQI Accounting will help your team with the transition to VAT. Our specialist VAT advisory team will provide post-implementation support and guidance during the project for proper implementation.
Step 4: VAT compliance
Consultation & guidelines
VAT is a general consumption tax and barring basic food items, health care and education, it applies to almost all goods and services. As part of diversifying the economy and revenue generation, the GCC governments have decided to adopt Value Added Tax (VAT) from Jan 2018.
Though the burden normally lies on the end consumer, the business organizations need to change the system processes to comply with the new legal requirement of the government
Normal requirements under VAT system – companies to comply:
The above requirements demand more control and safety on invoices, records, stock, proper filing system, modification/ upgradation of software, compliance within due dates for collection, payment, remittance of tax and filing of VAT returns. The role of the accounts department becomes significant for the compliance of VAT since maintenance of accounts and records is vital as per new company law.
Consequently, auditing and accounting firms in UAE is on the rise as the companies need to keep accurate and extensive records of their business transactions. We at SQI Accounting will help to maintain the data while the company can focus on other important matters.
Availing the VAT-related services provided by SQI Accounting is a perfect option as they are competent and reputed auditing firm to handle perfectly. Our services are second to none in mainland and free zones. For more details, Contact Us. We will be glad to be of service to you.
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