Bens believe in partnering with our valued customers, our Audit and Accountancy advisory would be pleased to share latest updates, best practices and educational tips with you. We encourage you for a continuous contact with Bens advisory. Feel free to contact us.
VAT Services in Dubai – influences in 2018
Facebook
Linkedin
whatsapp
Twitter
Copy Link
VAT services in Dubai – As of January 1st, 2018, the Dubai government decided to stop over-reliance on the oil generated revenue.
In order to generate enough revenue to invest in the county’s infrastructure, the government has to raise the tax.
The VAT was raised by 5% among the UAE countries. This, according to experts, is the best VAT services in Dubai.
But what are the implications of this tax on companies in Dubai? Read on to find out.
High operations costs for VAT services in Dubai
It is no secret that the new VAT laws in Dubai will increase the operational cost of most companies.
VAT services in Dubai are of the view that this will have a significant impact on the profits made by most of the companies.
As a company owner who is law-abiding, you will have to update your IT system, re-train your employees on the new VAT rules and many other things.
Eventually, all the things you will have to do in order to comply with the new laws will only mean one thing; high operational costs.
High product prices for VAT services in Dubai
While this might not be seen as a direct impact on the company, rather to the customer, the company will see a decrease in sales due to the high prices.
Vat in Dubai believes that most companies will want to transfer the VAT costs to consumers by raising prices of commodities.
But consumers will also react by reducing the number of goods purchased. In the end, the company will see a general decrease in sales due to the increase in VAT.
Accountability for VAT services in Dubai
With the new laws in operation, a company owner has no option but to hire the best VAT consultancy services in Dubai to help with preparing tax records.
From time to time, state officials will visit your company to check on the records to ensure that you are paying the VAT taxes.
Most of the records will be kept for as long as five years to present them to authorities in the event they visit your company.
Change business structure for VAT services in Dubai
The VAT will not just impact the financial side of your business, it will equally have a significant impact on the structure of your business.
You need to know that VAT will not be charged at one point. You will be required to pay VAT at various stages of production.
This is why having the best VAT services in Dubai is necessary as they will help you know the correct amount of money to pay at each stage.
This will go a long way in ensuring that you don’t find your company on the wrong side of the law.
One thing that is most common with the change in VAT laws is uncertainty about the future.
Remember that at the time of changing the law, no one is really sure about how customers will react.
While it is true that there are cases where customers will still remain indifferent,
in most cases, there are changes to purchasing habits.
VAT consultants in Dubai believe that it is necessary to conduct research to establish the expected reaction of customers before implementing any major change in VAT law.
Not really, Bens Chartered Accountants would like to work closely with you to make the changes exactly as per the revised law to make sure 100% compliance and adherence to local laws and required. Feel free to drop a note or give us a call.
It is our duty to ensure compliance, completeness and provide insights to make quality decisions.
You relax and focus on your core business, we will take care of the details and make it happen for you!
VAT services in Dubai – As of January 1st, 2018, the Dubai government decided to stop over-reliance on the oil generated revenue.