The Role of VAT Consultants in Ensuring Tax Compliance in UAE

The influx of foreign entrepreneurs is at its peak in the UAE. It is bringing more concrete business ideas, technology and infrastructure to stimulate growth. With that, comes the compliances to Value Added Tax (VAT), introduced to mark a significant shift in the country’s fiscal policy. However, this sometimes poses complexities in understanding the implications of VAT, especially for new businesses and that’s where the role of VAT consultants in UAE comes into play.

What is VAT?

VAT is a tax levied on the consumption of goods and services, at a standard rate of 5% in the UAE. Introduced in 2018, VAT has some exemptions as well:
● Zero-rated supplies: This is applied to exports outside of the Gulf Cooperation Council (GCC) region. Additionally, it is levied on international transportation, specific necessities like education and healthcare and the first supply of residential property.
● Exempt supply: There are certain goods that are exempted entirely from VAT on a few terms and conditions.

The role of VAT Consultants in UAE

Understanding the VAT framework and its criticalities can be challenging for businesses. Maintaining meticulous records with timely filings needs to be carried out with accuracy and promptness. With expertise in managing these responsibilities, tax consultants in UAE ensure businesses meet their tax obligations in all conditions and on time.

The role of VAT consultants in UAE is two-pronged:

● Ensuring VAT Compliance: The VAT consultants ensure that they handle all responsibilities that are essential for compliance such as registration, return filing, record keeping, audits and disputes.
● VAT Advisory: As part of advisory services, consultants also assess the impact of VAT on your business, ensure strategic planning, and offer industry-specific guidance.

Benefits of VAT Consultants in UAE

With VAT consultants in the UAE, businesses can leverage their expertise for numerous benefits, especially when their business is new and they need a peek into the taxation landscape.

Eliminates penalty risks

VAT consultants also excel in corporate tax services in UAE which can be advantageous for businesses in avoiding heavy penalties for any non-compliance. They can stay updated with current demands and adhere to regulatory norms.

Accuracy in filing

These consultants provide accuracy in VAT registration, filing and record-keeping to ensure accuracy in return filing for the business.

Improved operational efficiency

The role of consultants is significant for integrating VAT compliances into the existing business accounting practices. They can embed certain tools to simplify VAT management and provide a quick overview to business owners.

Audit support

Business audits need to be presented to the Federal Tax Authority (FTA). VAT consultants can represent on behalf of the business with expert guidance and ensure efficiency in auditing.

Strategic advisory support

Professional consultants are always up-to-date with new trends in the market. They can provide strategic advice to optimise VAT interpretations based on their understanding of the latest VAT-related regulations.

Final Thoughts

A professional VAT or corporate tax consultant in UAE can be your strategic partner in meeting VAT requirements, ensuring your business is compliant at all levels. With their strategic core remaining to align a business with the requirements of the Federal Tax Authority (FTA), which governs VAT, the business navigates through registration, return filing and auditing processes with ease.

At A&A Associate, we focus on maintaining your company’s financial health. We are a stop solution for VAT , corporate tax services in UAE, Accounting service, Bookkeeping services and company formation with an expert team to handle all your business tax-related procedures.
Get in touch with us today to stay ahead of the competitive taxation curve in the UAE.