How to Choose Right Accounting Services to Manage VAT?

Tax implementation or Value added tax (VAT) is a recent enactment by the Dubai government applied to the consumption of goods and services levied at the point of sale by consumers. The VAT is seen as a new source of income which helps in reducing dependency on oil revenue to provide high-quality public service. Vat applies to the businesses by the rate of 5 percent of its taxable supplies and imports exceed AED 375,000 per annum. This requires you to submit a “VAT return” to the federal Tax Authority at the end of each tax period. It is applied to the majority of transactions in goods and services excluding few exemptions granted by the government.

This change has led to companies and businesses for new litigation and supplementary tax services to facilitate companies to register themselves with the governing authorities and get tax filing done on a monthly and quarterly basis. The businesses are now required to report the amount of VAT they have charged from customers and paid to the government. This change in UAE has led businesses to seek professional help, especially when they lack internal resource and in-house capabilities.

As a business owner, you should hire accounting services that offer easy, quick and time-efficient VAT accounting and auditing services in Dubai, UAE. VAT registration in UAE is crucial for businesses to file VAT on time accurately and run the business efficiently in the UAE. There are several benefits of hiring accounting services when it comes to managing VAT.

Benefits of Outsourcing Accounting Services

1.   Saves Cost – It is one of the cost-effective methods when it comes to the hiring and training of an accounting and bookkeeping staff. This way you can eliminate the cost of providing a salary and avoid maintaining a full-time team. Therefore, you end up saving 30 percent of your business expenses without compromising productivity without hiring any special team.

2.   Variety of Services- Different services- When you hire an accounting firm, you get the benefit of a variety of services like an accounting firm will assist you with balance sheets, introduce you to complicated tax laws like VAT, maintenance of books of accounts and general ledger and deal with financial and legal issues. Accounting firms are compliant with local governing requirements and provide you with better accounting services.

3.   Save time-  Accounting Company comprises of knowledgeable people who help in providing increased efficiency to let you focus on other important areas and utilize resources in a better manner.

4.   Financial process – Accounting services give you quick access to all the necessary financial reports and documents which make the process swift and help the business to deal with other financial issues like dealing with stakeholders and financial institutions.

In addition to this, Accounting and bookkeeping services have their share of risk and benefits. It is important to choose a reliable and certified company that follows high-security standards and is transparent in its business proceedings.