tax consultant in Dubai

The VAT and Financial Accounting Services in Dubai

The Value Added Tax is a flat 5% tax that is levied on many consumer goods in the UAE. Not all however. Many expenditures in areas such as real estate, education, transportation, healthcare, and oil and natural gas production are exempt from the tax. Most expenditures, however, some  even in these very same categories, are not exempt, so care must be taken to understand the new tax regulations. In education, for example, some trips taken could be subject to the tax, and items such as electronic computer equipment and stationary may be, as well.

The Value Added Tax went into effect for businesses on 1 January 2018. Many businesses were not prepared. The law details substantial new record keeping requirements and imposes sometimes stiff penalties for those who do not comply. The regulations of this new law are many and complex. Is your company complying with all appropriate laws?

What does accounting for the Value Added Tax mean to your business?

For one thing, your business is facing more administrative expense, since you are responsible for the collection and accounting aspects of the tax. Also, due to the many items that are taxed, greater care and planning in purchasing may offer your company opportunities to save money. Then there is the actual accounting for the tax. Does your in-house staff have the knowledge and expertise necessary to account for these new regulations?

With change comes opportunity. The complexities of the new tax regulations have caused many to seek out professional accounting firms to deal with tax and accounting issues. There are other reasons this is beneficial for the business owner. For one, it may reduce in-house expenses and benefits paid, resulting in less long-term expense. Also, it allows the business owner to take advantage of years of experience, knowledge, and expertise that they likely do not have. At Charted House Tax Consultancy, accounting is our business. Our organization specializes in accounting, tax, audit, and technology. Contact us today!