Generally, confusion takes center-stage whenever a new law or regulation is rolled out anywhere in the world. The same was the case when the UAE government announced to introduce Value Added Tax from January 1, 2018. People got bamboozled by the chaos about how much VAT they will have to pay on what services and purchases. Getting the right professional advice is what the doctor orders in such a situation. The VAT consultancy UAE is your gateway to the right suggestion and recommendation in these times of confusion over the new legislation.
One of the most important point about how VAT works is that if you have charged more VAT than you have paid to the government, you will have to pay the different to the government. Similarly, if you have paid more VAT than what you have charged, you can reclaim the difference. All the businesses in the United Arab Emirates must charge the Value Added Tax on the taxable goods and services which they sell or supply. The businesses operating in the region will have to keep the business records while the real estate sector will have to keep their transactions records for 15 years.
The time is running out fast to get your businesses registered for the Value Added Tax. In about three-week time, all the concerned businesses will have to sign up for the VAT. In these three weeks, you can speed up things to meet the minimum requirements to oblige their taxation liabilities. In order to comply with VAT, the business owners may have to make some amendments to their core business operations, financial management, book keeping, human resource, and technology.
The times of tax-free living in the United Arab Emirates and the Gulf Cooperation Council (GCC) states are now breathing their last. If you want to end the anxiety relating to the VAT, click here and get a professional advice on how you can deal with the latest phenomenon. However, the best part is that VAT is now being implemented by the government of UAE at a rate of mere 5%. The amount is hence a lot less as compared to that which is being charged in the remaining 150 countries. For instance, the VAT is implemented at a full 20% in the UK. Lessened VAT means that the cost of living is going to be rather minimal, so all in all, this will be a great initiative.