Owing to the revised laws and policies of the UAE government regarding VAT laws, many businesses are registering for Value Added Tax. A general awareness related to the benefits of VAT registration has come to light following the new policies regarding reclaiming input VAT and tax in general. With more and more businesses growing and building operations in the region, input VAT reclamation has created confusion among sellers about the general procedure, benefits, and pitfalls. However, experts in the area can help you out in not only the calculation of VAT, but also in enhancing your business and boosting your business profile. All you need is the best VAT consultancy in Dubai to help you out. Read on to know some important pitfalls that you need to consider. Issues to Consider while Reclaiming Input VATConsidering the multifaceted structure of input tax for business, it’s essential to have experts on your side to help you identify problems and create workarounds to promote your business and also develop a good reputation. Read on to know which some common-issue with the reclamation of VAT: 1- Reclamation before RegistrationIt's critical to reclaim the maximum amount of input tax on business expenses. The VAT incurred before the business registers for VAT is ignored more too often. However it’s also essential to know about the allotted time that allows backdating of VAT before registration. It’s important to note that: only the businesses registered for VAT can reclaim VAT purchases and the claims made must be related to VAT taxable supplies and products. 2- Duplication of InvoicesDuplication is often a very common input tax error mainly due to the increased usage of computers, photocopiers and other devices to generate invoices. It's essential to steer away from proforma invoices when reclaiming input VAT. 3- Transposition in InputsCommon error whether genuine or careless, resulting in the smallest change in digits can be extremely costly for the company. To avoid input errors it’s essential to ensure error free setting up of spreadsheets along with data inputs. Apart from that vigorous rechecking system should be in place to ensure that the data being input is accurate. 4- Partial ExemptionIn the case that a business has a mixture of exempted and taxable supplies, it is only partially exempted and business needs to claim input tax for the taxable supplies. Numerous businesses may never realize that they are partly exempted or do not have the knowledge to help them calculate partially exempted input tax. 5- Entertainment Costs for BusinessesThe VAT on entertainment costs for business may also often be very confusing. In a general perspective, reclaiming input VAT is not permissible for business entertainments unless it's being given to overseas customers or employees. For example: Food, drinks, accommodation, tickets, sporting events facilities and entries are all used for entertainment purposes. 6- Tax Reclamation for CarsIt’s possible to reclaim input tax on cars, in the case that one of the following applies:
7- Missing Links with Taxable TransactionsThe absence of a link to taxable transaction input tax deduction is only possible, in case the purchased goods or services are directly linked to a taxable transaction. Expert advice may often be needed to determine the nature of the exchange. ConclusionRegardless soft the age of businesses, it’s critical to register for VAT due to the many benefits, however, the complicated and most layered structure of VAT in UAE makes it impossible to figure it out without expert help. Opt for the best VAT consultancy in Dubai, and you're safe from all the pitfalls mentioned above and more concerning reclaiming input VAT. Less financial losses and fines mean more reputable and reliable business!
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Whether you own a small startup or a large multinational firm, if you’re a firm in the UAE you’re bound by the new Emirati law to conduct audits to keep in check the financial health of your firms. External Audits in the past were informal procedures carried out by the accountants working for firms. These accountants would help in the reconciliation of accounts, adjusting any entries made to the journals and also in the creation of financial statements. Third party auditing firms have started making more sense because it’s a little more efficient and helps with the company’s costs. Independence of auditors has become an essential part of the auditing process. More and more firms are turning towards, top audit firms Dubai for their external audits. The benefits associated with external audits are numerous and pave the way for the future success of companies. Though the best audit firms know what functions they can perform, organizations hiring them, however, may often be unaware of the spread of their roles and responsibilities. The text below highlights what an auditor is not destined to perform when working for your organization. What your external auditing firm will not do: Though the following list doesn’t contain the complete of tasks, it’s important to know that the external auditor does not take up the role of the management. Auditors are independent entities. Since auditors aren’t involved in the main processes of the firm, they do not hold any responsibility for the presentation of financial statements. Read below to know what your audit firm can or cannot do! Managerial tasks your firm will not perform
Non-managerial tasks that your audit firm will not do: There are numerous other non-managerial tasks that organization conducting audits will not perform for a firm. The auditing firm will not:
Conclusion It is critical for organizations especially the management to know what audits are and what an auditor may or may not be entitled to do. The based on the finances and financial statements of firms, an auditor is to give an unbiased, independent opinion. The opinion will be according to the auditing standards which guide reports and processes in the audit process. Though novices may find it hard to limit themselves, an expert audit firm will not have issues identifying their limitation with thin the organization they're auditing. Opt for the top audit firms in Dubai and your organization can run smoothly along with that audit process with little chance of interruption. When you start a new business, then you have higher expectations from that startup. Resources are one of thing which often people are not sure of. They might even book the stuff which can waste their resources. To keep track of financial aspect companies need to have auditing and bookkeeping. This is because when you have a new business, the expenses are more than the profit. Because the everyday expenditure is a lot thus, owners need to know where and how they spent the money. This will give them a clear view of the business, resources and the demand of the future resource to build up a great venture. But let me tell you that not everyone will be able to pull off the financial record and keep track of that. You need to have professional help so that there is no mistake in understanding to financial resources of the venture. So if you are looking for some much needed professional help in the financial tracking then bookkeeping and accounting firms in Dubai should be the best choice for all those who are operating in Dubai. Not convinced with the idea of hiring a professional firm? Well- this article might change your view so read till the end. Reasons bookkeeping firms can be useful for new companies:
New businesses are often have limited resources, and for this reason, they need to utilize it carefully. Once you know your business is in a growing phase, then you would want to have some aspects on which you can actually take into account the financial record and the spending in general. At that point in time, professional help will surely bring in some benefits to help a new business grow faster. Following are some benefits which you will be able to attain if you hire the bookkeeping firm: Expert opinion: No matter how much you are aware of the business and its working you still might not be able to get the full understanding of the financial thing. Hiring a bookkeeping firm will bring the right kind of knowledge and understanding of the industry you are operating in. Having an expert opinion in this regard will help you perform better in business growth and establishment. Time to focus on the business strategy: The business is in a growing stage, so you actually need time to understand the dynamics and strategy. When you are sure that the business financial idea is taken care of, then you can actually focus on the strategy and find the ways in which you can actually boost the growth. Efficient handling of your financial data: When you have bookkeeping firm watching over the cash flow, then it becomes easy to understand the economic process. This will give you a sense of peace that the resources are allocated perfectly and they will not be misused because someone is there to handle the money matters and give you a report every now and then. Final remarks: When you are just starting off the business than keeping an eye on the financial aspect will save you quite a few bucks. The saving can be used in business promotion and growth, but it can only happen when experts are watching over financial matters. If you are looking for an expert to handle the financial data then bookkeeping and accounting firms in Dubai should be your top choice. They will make the process efficient with their bonafide skills maintaining the financial health of your business. |
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