Introduction of VAT in UAE and its Implementation


Gulf countries have decided to implement taxation as part of the governments' efforts to diversify revenues in the context of sharp decline in oil prices. The International Monetary Fund has been recommending fiscal consolidation in the Gulf Cooperation Council through diversification of government revenues and reduction of subsidies.

New initiative to provide the country with a new source of income, the UAE government introduced VAT, from January 1st, 2018.  Before Implementation of VAT the country was highly dependent on oil and other hydrocarbons, now with the implementation of VAT, this is expected to change.


VAT will be charged at a flat rate of 5 percent. Companies whose turnover fall between Dh1.87 million and Dh3.75 million will have the option to register for VAT during the first phase of the VAT implementation. Optional threshold limit is AED 187,500 per year.

Indian Muneem knows from experience that companies need assistance suitably for VAT implementation in UAE to comply with the UAE VAT law.  They should develop a workable tax plan. 

The active VAT implementation technique is as follows:

The VAT experts should understand the business model to build the best VAT implementation plan that suits the VAT rules for your business.

Indian Muneem gives guidance about the methods of VAT in the UAE, business type and compliance problems on the UAE VAT Law.

We study the flow of VAT on costing, profitability, working capital and business. This evaluation brings improved understanding for the management.

The present accounting systems must be examined thoroughly, correct classification or grouping with chart of accounts that suits the VAT regime is needed. Tax guidelines will be given to the accounts team for making the first VAT return to the Federal Tax Authority (FTA).

Indian Muneem provides Proper guidance for integrating the new the UAE VAT regulations inside the accounting, billing and other administrative actions.

Comments

Post a Comment

Popular posts from this blog

Bookkeeping Outsourcing Company

Image
To maintain your accounting records up-to-date often is a time-intensive and an expensive practice for almost any business, rendering little apparent added value. Are you facing problems in understanding where your money is going? Do you happen to be putting in hours of your precious time and efforts handling the books? Let our team at Indian Muneem help save your time, effort and money, while also minimizing your financial pressure by means of our outsourced bookkeeping services. Indian Muneem (…Believer of simple and smart accounting) is one of India´s leading accounting outsourcing service provider since 2000 that offers end-to-end bookkeeping Outsourcing Services . We at Indian Muneem have invested in the state-of-the-art technologies to provide you seamless bookkeeping outsourcing Company . Our advantage to you involves lowering of administration expenses, reassignment of workforce to concentrate on your primary business pursuits and the certainty that your acc...
Read more

Learn how outsourcing Accounting and Bookkeeping Services can be Beneficial for Your Business

Image
Bookkeeping and accounting are the two significant dialects of business without which no business is complete and able to cope with the daily activities bookkeeping department. Having knack knowledge on the financial situation of a business is very essential for each organization. It tends to be achieved only when a viable accounting system is established. Thusly, having an in-house bookkeeping team is significant for each business.    The job of bookkeeper and accountant can be challenging and tedious as it includes a lot of complex investigations and researches. It is recommended for the SME enterprises to outsource their Bookkeeping and Accounting Services to some expert services provider. However, small business owners neglected to understand the significance of bookkeeping accounting services in Singapore. Let’s have a look at some key advantages of outsourcing Accounting and Tax Outsourcing Services for Singapore . High level of Accuracy/ability: The expe...
Read more

Accounting Outsourcing in India

Image
Indian Muneem is one of the fastest growing Accounting Outsourcing Company in India in the field of KPO for providing Accounting & Financial services. Our accounting professionals are certified in QuickBooks Accounting, Sage Accounting, Microsoft Accounting softwares, SAP, MYOB, Client Bookkeeping Solution, Xero Accounting, Kashflow Accounting, IRIS, Caseware, US Tax Returns, UK Tax Returns, UAE Tax, Singapore Tax, New Zealand and Australian Tax. We are also providing back office Accounting Outsourcing Services in India to CA/CPA’s & ACCA’s in US, UK, UAE, Singapore, Canada, Australia& New Zealand for accounting, bookkeeping, Payroll and tax returns. Indian Muneem provides Accounting outsourcing services to other companies that could also be or usually have been provided in-house. Our Accounting Outsourcing services to your back-office finance and accounting enables the client to focus on their core business while cutting on the costs of company overhead. I...
Read more