The implementation of the Value Added Tax in the United Arab Emirates is a reasonably new change, and this change was made to help both the public as well as the business entities. Not only will the VAT reduce the dependency of the country on the oil and hydrocarbon sector, but it will also simplify the tax filing process.
As the Value Added Tax is a new addition in the UAE, the rate for this tax was decided at 5%. This may not sound very much, but this source of revenue will significantly help the government to focus on the infrastructure and the other essential amenities of the country. The government has even levied penalties in case the various entities do not properly file the VAT.
This is the reason why VAT return filing is essential and it is equally important to hire a VAT Consultancy.
Need for a Tax Consultant
A consultant is a person who is an industry professional or has enough knowledge about the subject that he or she can address the problem faced by a company or individual. This is the reason for choosing a VAT return filing consultant can be very important for a business. here are some of the primary reason why you require the services of a VAT consultancy:
1. New and Recent Addition
Value Added Tax is a relatively new addition to the taxes and has been made mandatory by the government of the United Arab Emirates. It is still unclear to many of the businesses, and even a small mistake in the filing will lead to a big business fiasco.
As the VAT is relatively new, the nuances of the tax are not clear to everyone. A consultant will not only provide an understanding of the business but will also file the VAT in a simplified and error-free manner.
3. Guidance for the future
In order to file VAT, the management of a business needs to prepare many reports and other essential documents of the company. A more in-depth analysis of these businesses will allow the company management to understand the trend of the industry and act according to it.
By availing the services of a VAT consultancy, the management of a business will be eligible for so many benefits. This is why choosing a VAT consultancy is very important for a business in the UAE.
Requirements to consider before choosing a VAT Consultancy
Selecting a tax consultancy can be demanding as you may not know which consultancy will suit your needs. Here are certain factors which should be kept in mind before availing the services of a VA Return Filing Consultant in UAE:
Checking the certifications of the consultancy is the first thing you should do. The certifications provide a fair idea of what is the expertise of the consultancy and will thy be able to handle the requirements of the business.
2. The reputation of the Business
Its reviews can determine the reputation of the business. If any of your friends or peers have used the services of the consultancy, are they happy with it or not. The reviews are a great way to gauge the reputation of the consultancy.
The experience of the consultancy will help us to understand how good the services will be provided by them. Also, if the consultancy has experience in varied industries and sectors, the consultancy will be able to provide a better and detailed service as they will take into consideration the impact of any decision the management makes.
It is imperative for a consultancy to have excellent communication with its clients. The clients of the consultancy should be able to reach it at all times as the business should gather all the relevant information of the business and analyze them for making the future.
5. Fees Charged
This is perhaps one of the most significant factors which will help you to decide to choose a particular consultancy. If the fees charged by the consultancy are too high then even if the services are very good, a business will not prefer to avail them.
By keeping all the factors mentioned above in mind, a business will be very quickly able to choose a consultancy which will assist the business to prepare for the future and take steps according to it. A VAT consultant will not only help the business to file the tax returns accurately but will also help the company to prepare for the future in a better way.
If you are planning to avail of the services of a Tax Consultancy in UAE, you can look into the services provided by JAXA Chartered Accountants. JAXA is a reputed accounting and auditing firm in Dubai that will understand your business and then deliver the services accordingly. Please Contact Us to know more about the various services offered by JAXA Chartered Accountants.