The UAE government requires businesses to file VAT returns. It is a directive that companies must comply with. The VAT tax is an official tax document that is submitted to the Federal Tax Authority. The UAE taxation law requires VAT returns to be filed quarterly.
All the businesses who have a place of residence in the state of UAE and whose value of supplies in the member states in previous 12 months has exceeded AED 375,000 should mandatorily register under UAE VAT. Also, if the businesses anticipate that the total value of supplies will exceed the mandatory registration threshold of AED 375,000 in the next 30 days, then they too will have to register under UAE VAT.
Typically, the tax document contains information on tax recoverable input and tax due output, as well as the net VAT applicable. The taxable individual or a person elected by the taxable party may file VAT returns.
In other words, corporation tax return specialists or legal agents can file VAT returns on behalf of the taxable party.
And because the law allows individuals and companies to hire Dubai vat filing agents, it is vital to work with VAT return services at reasonable rates and has the knowledge and expertise to manage VAT return filing based on UAE VAT laws.
With United Arab Emirates continually expanding and sealing its name as the leading business hubs in the world, the need for assistance in maintaining books of accounts, particularly VAT accounting, has become even more important. As per the UAE VAT legislation and UAE Federal Commercial Company Law of 2015, business entities operating in the UAE are to keep proper accounts of transactions for a minimum of five years. As businesses want to ensure they satisfy the requirements of government authorities, the majority of them are outsourcing VAT Return Filling onto third party experts.
It can be hard for businesses to managing accounting and bookkeeping, especially related to VAT, as tiny mistakes or errors can result in hefty fines and penalties. Also, there are so many benefits from outsourcing VAT Return Filling in UAE including an increase in profits, consistency, and compliance to changing regulations, and more resources for the growth of a business.
Benefits in Outsourcing VAT Return Filling:
Outsourcing VAT accounting in UAE has now changed the previous trend of having an in-house team for bookkeeping as businesses are dealing with skill shortages and cost control. Experts from service providers of outsourced VAT accounting in UAE can provide businesses with the following:
- Business advisory – an outsourced team can provide your business with assistance in creating strategic plans for its growth. As a firm has seasoned accounting experts that are helping your business, you will be able to solve multifaceted issues that are specific to your industry and help make sure that you have reports to view when you want to check the cash flow of your business. Experts can provide advice as well if you are looking into opportunities of the business for growing and optimizing. A service provider, if you choose an established and reputable firm in the UAE, can not only address your VAT accounting responsibilities but also provide you with a platform in improving cash flow and driving profits, ultimately helping your business
- Avoiding tax penalties – one of the main responsibilities of a firm that offers outsourced VAT accounting in UAE is to help organizations avoid tax penalties. Local legislation related to tax filing and preparation constantly changes. This is why it’s necessary for a business to be updated on all the changes to tax policies. Also, mistakes in the filing or preparation of tax reports can be very costly. When tax responsibilities are outsourced, experts are the ones carrying them out which means you no longer have to worry about fines and penalties from the tax
- FTA Registrations: One of the initial steps of VAT Return Filling is registering yourself with the Federal Tax Authority, it is the outsourced firms responsibility to carry out all the procedure according to the regulations before the VAT Return