The intention of the government with the introduction of the VAT is to focus on taxing the discretionary spend by the consumers. The government aims to protect the lower end of the spectrum. It has already been announced that 100 food items, social services, education, and bicycles will remain exempted from VAT. Further, items like smart phones, electronics, watches, cars, eating at a restaurant and jewellery will be under the taxed category.
Is your business liable for VAT?
If you own a business where your goods and services are subject to VAT ( Ethicsplusuae.com/vat-consultancy ), you need to reclaim the VAT you incur on the cost. If you find the process difficult to understand and implement, you can seek the help of VAT consultancy in Dubai. The professionals have thorough knowledge about the latest regulations in the country and will be happy to guide you with the same. If you are engaged into activities which remain exempt from VAT, you will not be able to reclaim the VAT incurred on costs. In this case, the VAT you pay will be a part of the cost to your business.
VAT is an indirect tax that is ultimately borne by the consumer. Hence, it is expected that the prices of the products will be increased by the amount of VAT applicable on the same. It ultimately depends on the suppliers to fix the price of their goods and the price will need to take account of VAT. There is not enough time for business owners to consider the impact of VAT and take relevant steps for the same. The efforts you need to make will totally depend on the size and complexity of the business and it is important to consider the impact now so as to determine how to deal with it. VAT consultancies in Dubai can help you with the entire process.
You need to understand that if you own a business that falls under the VAT bracket, you will have to file the returns and also claim the VAT as an input. It might not be possible for you to manage the business as well as look into details like VAT. This is why professional experts from the industry will be happy to guide you and will manage everything for you without you having to take any efforts.
If you are unaware of how VAT impacts your business and whether you need to pay VAT or not ( https://ethicsplusuae.com/ ), seek help of professionals who have the knowledge and expertise in the industry. They will not only be happy to explain the concept to you but will also guide you with regard to the same.