Accounting VAT solutions in UAE

November 28, 2018

VAT solution UAEValue Added Tax (VAT) has been introduced in UAE after being modeled with policies of EU VAT. After imposing VAT as mandatory governmental sales tax, there are many companies (small, medium sized or large sized) that cannot handle or control the VAT structure in UAE. Additionally, it was estimated that around 40.5% business operating in UAE that have not been using an effecting accounting software for capturing numerous tax transactions. In the light of such fact, there are companies that are known for providing VAT solution in UAE to help such businesses in VAT management.

There are some points which are made considerable by VAT solution providers to the businesses in regard of VAT. They are as follows:

Dynamics Business Solutions

  • A company must register with respect to the Tax authorities in UAE as January 1st, 2018 has passed. But the condition is optional for businesses to register having a turnover of above 50,000 US dollars.
  • It is must for companies that earn a turnover of over 100,000 US dollars to register for VAT tax returns.
  • The businesses have to consider the Output and Input Tax, exempted transactions and zero rated tax while reporting and filing tax returns.
  • The drive will be to register and avail input VAT credit for businesses while not remaining outside.

It is recommended for businesses to research on best VAT solution providers in UAE as there are some solutions based on software that are not VAT compliant in UAE. By performing a good research will help the company to take business operations in a correct direction and the hassle to recheck with VAT is also minimized to a great extent! In such manner, it is ensured that the company is adhered with respect to VAT and it is VAT compliant.