VAT is imposed on the gross margin at each stage of an item’s manufacture, distribution, and sale. At each level, the tax is assessed and collected.
Sounds confusing?
You aren’t alone!
Many people don’t know VAT well and how to find the best VAT services.
This guide will explain VAT filing and how you can best use VAT services in Dubai.
What is VAT?
VAT is added to a product at every step along the supply chain, where it gains value.
The amount of VAT paid by the consumer is dependent on the cost of the product, less any supplies cost that has already been paid at a previous step.
What are the VAT requirements in Dubai?
If a company’s taxable shipments and imports surpass the statutory registration level of AED 375,000, the company must register for VAT.
Furthermore, a company may opt to register for VAT voluntarily if the total amount of its taxable supply and imports exceed the AED 187,500 voluntary registration level.
How to find the best VAT services?
Here are some tips you need to know to find the best VAT filing services in Dubai.
Understand your needs
The first step in locating the finest VAT professional service is determining what services you want. Some people have simple tax returns, while others may require the services of a tax preparer who can manage complex tax issues and is accessible for consultation throughout the year.
Compare the costs
While you should choose something other than a VAT service only on price, comparing estimates from many providers is worthwhile, especially if you are using a tax preparation service for the first time. Some filers may charge an hourly rate; others may require a monthly fee.
Do proper research
Even if you’re in the middle of the VAT filing procedure, feel free to search around or switch service providers if you’re not content or comfortable with the service you’re receiving.
After your initial research, conduct a quick background check. You may also look up the VAT provider’s name on social media. Find out what people are saying about them on their website and what others are saying about them.
Start with your network
When you’ve determined the scope of the VAT service provider, it’s time to start looking. A good place to begin is with your network. An online search may be your best bet if your network needs more relevant leads.
Communicate
You want to avoid trusting someone with your VAT filing at first instance, so set up a meeting with the service to explain your case and ask questions.
Final thoughts
So, there you have it. Following the tips above, you can choose the best VAT service providers in Dubai. It’s important to remember the VAT rules of Dubai and how you can file them.
