What Are The Upsides Of VAT For The UAE Business?

A VAT is an indirect tax charged on the final consumer for the consumption of goods and services being chosen by them. Most of the nations have understood and implemented it at a very fast speed. Out of those nations, UAE is the nation that has recently implemented the VAT process in its national pitch. VAT systems in the UAE not only affect the end-user, buyers and consumers but also have a broader impact on commercial institutions and businesses in the UAE.  So let’s have a look at the impact of VAT on the business entities in the UAE.
  • New Revenue Stream to the UAE Government- The new tax system allows an infusion of working capital in the economy and so boosts the stability of the economy. It overall improves the Gross Domestic Product that in itself is a sign of a healthy and developing economy.
  • Improved Infrastructure- Impact of VAT on the business entities not only increase the revenue stream of the government but also enhance the infrastructure of the country. A nation, either developing or developed requires ample expenditure on its infrastructure. The developing country engages its income in developing infrastructure whereas developed nation attempts to expand the same. So, being an added source to revenue, VAT will increase the investment horizons. 
  • Increased Business Efficiency- The initial rise in cost implementing VAT may disappoint the businesses to introduce it. However, certain long-term benefits can be derived from VAT implementation. As soon as VAT-compliant systems are installed, businesses will run far more resourcefully. This will gain a long-standing benefit from this streamlining exercise.
  • Non-Financial Benefits- With the introduction of VAT in UAE, the expenditures might inflate slightly. Nevertheless, on the counter end, there is an improved level of transparency in both the business and the economy.  Tax regulations bring many non-financial benefits to an economy such as enhanced liability management reducing the rate of civil fraud, corruption, waste, etc. The introduction of VAT plays a crucial role in enhancing the accountability and democracy of the government.
  • Distributed Costs- Although small companies, in particular, have the upfront implementation costs to consider, it’s the end-user who may hit the hardest by this VAT laws. While the process of collecting and submitting VAT lies with you, the cost occurred by business entities charged to the customer via sales channels. So, even at the comparatively low rate of 5%, it shouldn’t shake your bottom-line too much.
  • Advisory Opportunities- The implementation of VAT opens up a market opportunity for professionals and experts who are specialized in it. To avoid the complexities of newly implemented tax, many companies hire consultants to help them understand the laws, adapt their business and set up VAT compliant enterprise. Hence, this offers a potentially lucrative opportunity for entrepreneurs looking to hit into this sector.
If you are still uncertain about how the VAT system will specifically impact your business, or whether you are operating in line with regulations, look for the advice of the best VAT consultant in UAE. For this, you can contact ARC Associates, the best VAT services in UAE, offering a one-stop solution to all the problems relating to VAT. With a dedicated team of professionals and experts, we are here to serve you as the inception of VAT in your business entity i.e. registration, followed by accounting for VAT, strategic advising, tax planning, report preparation, filing returns to the VAT authorities, etc. Do contact us today. We would be happy to assist.
Location: United Arab Emirates

Comments

Post a Comment

Popular posts from this blog

HOW TO GET ICV CERTIFICATION IN UAE?

Image
  ADNOC (Abu Dhabi National Oil Company) has impelled an In-Country Value (ICV) program with the target of developing and broadening the UAE's economy and setting out open doors for UAE nationals in the private area. As a feature of ADNOC's ICV program, all ADNOC providers are needed to proclaim their ICV Certificate . ADNOC requires a yearly third-party check of the quantities of the ICV Certificate to be led. By coordinating the ICV measures into ADNOC's business assessment measure, the organization plans to support nearby and global associations & openings, creating more job chances for the UAE nationals & improving knowledge transfer. How To Obtain An ICV Certificate? The application process for obtaining an ICV certificate is fairly easy. Though, there are a few guidelines that you should be aware of. They are: Only empanelled ICV certifying bodies in UAE can be handed out ICV certification. Once a supplier applies for the ICV certification, they will need...
Read more

What Does A Business Have To Plan For VAT In UAE?

Image
The word Vat Return can panic even the most experienced entrepreneurs yet significantly more so the new startup entrepreneur, new to the universe of account & the lawful necessities their business faces. Many set up their own VAT returns while others frequently really like to look for the help of expert accounting services to stay away from any danger. They help you know about the VAT fundamentals, the necessities, the standards & the guidelines you should face to ensure your business compliance. Since VAT law is quick drawing closer, organizations should begin outfitting to execute the VAT necessities at full speed. There are five key components that organizations need to do VAT plan: Directing a VAT Impact Assessment The VAT impact assessment is the most vital phase in the whole VAT implementation procedure. At a strategic level, organizations need to evaluate the progressions needed to be made in valuing & cash flow management. This would rely on competitor analysis,...
Read more

ARC ASSOCIATES | Most Trusted Accounting and Auditing Company in Dubai

Image
Money management is one of the most difficult aspects of any business. This necessitates the help & support of top UAE accounting firms who can direct them along through the accounting process. Auditing entails a lot of work, such as payroll, auditing, accounting, tax planning, and so on. Are you looking for the best accounting firm in the United Arab Emirates ? Look no further because ARC Associates, Dubai, is your ideal partner for professional accounting assistance. We have a team of certified Chartered Accountants and Accounting professionals with over 35 years of experience in Audit, Accounting, Financial Advisory and Consulting Services. We are a leading auditing firm in the United Arab Emirates, with offices in Dubai, Abu Dhabi, and Sharjah. Our professional accountants have a wide range of experience dealing with clients from all over the UAE. We can guarantee that we can steer our customers on the correct track to enhance their overall organizational performance using ou...
Read more