Being a business entrepreneur operating in Dubai, if you are in confusion whether registering you with Value Added Tax is imperative or not, it’s ideal for you to get in touch with a VAT consultancy in Dubai ( Ethicsplusuae.com/vat-consultancy ) for necessary assessment and support. The vast majority of business owners are not well familiar with VAT issues and their obligations. The most essential points that most business people like to know about VAT are stated below:
What is VAT?
VAT (Value Added Tax) is basically an indirect tax which is often considered in the category of general consumption tax. Among many countries where VAT has been implemented by the Government, Dubai is one of them. The indirect tax is usually levied on many goods and services while certain items like food products, healthcare, social services, education, and bicycles are exempted for VAT in Dubai.
Why Need VAT Consultants?
Since VAT is a complicated tax matter and completely different from Sales Tax as it needs to fulfill a series of formalities, it’s recommended that enterprises should contact VAT Consultancy in Dubai. They are registered tax experts who work with your team, understand the type and volume of your business, and help in getting VAT registration followed by a pre-assessment. Aside from guiding you on a day to day documentation, they compute taxes, submit a return, and do the needful for refund wherever necessary.
How VAT is Levied?
The VAT is levied throughout every step of the production chain. Unlike sales tax, which is mainly imposed on the consumers at the end stage of closing a sales deal, VAT is imposed on every step linked with production. One advantageous point of VAT is that while consumers commonly bear the charge, it’s the production companies or employers that perform as the tax collectors for the government. Thus, the tax paid by your company to the public dept is what you’ve collected from customers while invoicing. Equally, you’re supposed to get a refund of the excess taxes that you’ve paid to your suppliers. Simply put, the tax you pay to your supplies is Input Tax and the tax amount you get from customers is Output Tax. If your Input Tax is higher than the Output Tax then you will get a refund of the remaining part. No Worry? Your Vat consultancy in Dubai will undertake all responsibilities to carry out the things adhering to the tax guidelines.
Do You Need to Register With VAT?
While all businesses have a certain level of uncertainty whether they are obligated to get registered with VAT, the answer is no. For entrepreneurs involved in businesses which are exempted from VAT don’t require to obtain registration. Equally, for businesses that fulfill certain criterion under VAT policies, in terms of crossing certainly specified turnover are supposed to fetch a registration.
What is The Period for Filing VAT Returns?
For registered businesses, VAT returns need to be submitted once in three months. Your VAT consultancy in Dubai ( https://ethicsplusuae.com/ ) team will let you know what type of records you need to maintain with due diligence for reviewing the transactions that are made in buying and selling points. These are important papers required for the computation of tax return.