Tax is one of the most important expenses that a person has to make. It is the duty of each and every citizen to pay the tax to the country where they live. The tax is important as it is used by the government for the development of public services like roads, railways, etc. Before UAE was a tax-free country. But from mid-2017 they implemented Excise tax and from 2018 VAT is introduced. The introduction of Tax in the country was in the aim to reduce dependency of Government on Oil revenues. They found a new source of income other than from oil. It is the FTA- Federal tax Authority is taking care of the tax in the country. Registration for VAT is done at FTA.
Audit firms in Dubai
Have you ever checked your accounts and done assessments on the income, spending pattern, employees payments etc. by your own. If so, you will know how hard and difficult it is. It is necessary to keep accounting records update and clear so that when it is time for taxation, it will be easy to do auditing. Proper filing of invoices is also essential so that auditing by can be performed without any mistakes. For this, it’s advised to give your accounting and bookkeeping activities to Audit Firms in Dubai.
Accounting is the process of keeping a record of incomes and expenses of a company. Accounting is important for a company as it gives an idea about the current financial status of the company. Also helps in preparing the necessary steps to avoid financial crisis in future. Bookkeeping is another service done by audit firms, it is the process of preparing and keeping the financial records, statements, balance sheets etc. They will make sure the employees are handing over invoices and other financial documents on daily basis. Keeping track of your financial record is very essential. It will give you a clear about how much you spend, how much someone owes you which in turn helps you monitor the nature business. Accountants will do the accounting in the correct manner so that no errors will be made which can lead to high penalty.
Role of Tax Consultants
Taking the VAT Consultancy services is the most ideal approach to compute the tax of your company/ business. A VAT expert helps your business to comply with all the VAT guidelines and plans and advices to take necessary steps to run the business efficiently and profitably. Functions of a VAT Consultant vary slightly in different places, though most of the services offered by them remains the same.
- VAT Registration for the company will be done by them for both individual and group.
- Gives advice on tax issues.
- Gives guidance for the preparation of filing of tax returns.
- Directs and gives you information regarding the benefits by FTA
Importance of Tax Consultants
Each country is having tax rules as per their Government rules. In UAE tax is new to everyone and no one is having much knowledge about the loopholes and clauses of Tax. So everyone should make sure they are safe and are not making any mistakes to avoid penalties. VAT Consultants in Dubai are very familiar with the tax terms and clauses so that they are capable of reducing the overpayment of tax. Their aim to keep their client’s tax to the minimum. Tax Consultants/ VAT consultants ensure their client’s are true to tax laws and makes sure they are following all the legalities. A VAT consultant review all the financial records of his clients and recommends adjustments, deductions in order to make everything is tally and to meet the laws. For us, tax policies seem to be very complex, confusing and technical, with the help of these consultants we can also learn and understand the different clauses of taxation. An expert tax consultant makes the job easier and saves the company both money and time.
Tax planning is a very crucial part while you run a business. All companies consider hiring a tax consultant as an additional expense but actually they will save you money and you can be stress-free. With the help of consultants, your company’s risk is at minimum and safe run is guaranteed.