If you in anyway related to business, you must have known that VAT tax shall be imposed soon. The government of UAE is taking necessary steps in this direction and has asked all businesses to do the needful. Off course, businesses operating in UAE never had to pay this tax before. Naturally, they know little to nothing about the VAT. In this situation, entrepreneurs are doing all they can to attain the knowledge about VAT and how to handle it without suffering any mishaps. Initially, the 5% VAT will be imposed but this is not given. The good omen is that most businesses have already started to make arrangements to properly administer the process of paying the VAT. However, VAT implementation on businesses is crucial and requires them to hire a professional value added tax consultant in Dubai. Here is more on what arrangements you should make to ensure your registration into VAT program:
What It Means For Businesses?
Whether you like it or not, there are things about VAT taxation that you should know about beforehand. By the time VAT will be in place in UAE, you might not have enough time to understand the fundamentals of this tax. Therefore, it is important to know the reasons and purposes as to why it is imposed. The first thing to know about VAT is that it will be imposed on most commodities and services but not education, general food items and healthcare. There is a reason why it is not implemented on the most necessary requirements. Since it is primarily meant for businesses, the VAT is meant to enhance the tax net of the government which will in turn provide better facilities to the public. Therefore, it makes no sense to impose the tax on things that come under the category of public welfare.
Why Hire A VAT Consultant?
Also, once the VAT is imposed, companies will be required to urgently hire reputable VAT consultants to help them out in the situation. Wondering why would that be necessary when an ordinary auditor or accountant can do the job? The reason is simple – for collecting the VAT, the government primarily relies on companies as tax collectors. Essentially, you as an entrepreneur are collecting the VAT on behalf of the government. If you are having difficulty registering for the VAT program, just let your VAT consultant do the job for you.
Click here to learn more about the VAT taxation and how to become a part of the program.