2018 was the eventful year in the UAE economy as the government resorted to the implementation of VAT for the first time in history. UAE was among the first countries along with Saudi Arabia to levy VAT as per the understanding of GCC VAT framework. Now, traditionally the Middle-Eastern region has been dependent upon the Oil revenues; however, recently the countries have looked to diversify their revenue streams to include non-oil sectors and hence we see the implementation of VAT in the region.
As per the GCC VAT framework, the countries accepted to levy VAT at 5% rate in the beginning, with Saudi Arabia and UAE being the first two member states to implement the initiative followed by Bahrain (January 2019). Now, since the implementation of VAT in UAE, all businesses operating in the country (with annual revenue matching or crossing the threshold set by the regulations) are obligated to register for VAT and submit VAT returns. Now, according to the Federal laws for VAT, all registered businesses are required to submit timely and accurate VAT returns in order to avoid penalties and restrictions.
Considering it’s just over a year since the implementation of VAT in UAE and not many businesses in Dubai or elsewhere in the country have the technical and system resources required to comply with regulations, the best way out for them is to hire services of professional VAT consultants in Dubai.
Now let’s see some of the benefits of hiring services of professional VAT consultants in Dubai – UAE:
Who’s a VAT Consultant?
Professionals with in-depth expertise and years of experience working in the industry for VAT implementation are referred to as consultants. These consultants are deemed experts of VAT implementation and are expected to offer efficient and effective solutions that help businesses to stay at par with VAT compliance and avoid any financial or administrative penalties.
Types of Consultant
Now consultants can be categorized into two types, including;
1. Internal Consultant
Internal consultants are referred to consultants who are part of the in-house team for businesses and carries expertise for various aspects of the business. The internal consultant usually works in collaboration with different departments of the business and help the departmental team with crucial business advisory. An internal consultant is also responsible to draft and implement confidential reports and documentation, aimed to tackle key business issues.
2. External Consultant
External consultants are referred to third-party consultants who specialize in a particular field and have the requisite experience and expertise to give valuable solutions. These are also referred to as subject-matter experts, pointing their specific domain specialization. Businesses will hire services of external consultants to have their advice and opinion about the subject matter, as a mean to optimize internal systems.
Benefits of Hiring a VAT Consultant
Here are some benefits businesses can avail by hiring the services of professional consultants:
- These are professionals with in-depth expertise dealing with VAT laws in UAE and other GCC member states
- They have the experience and expertise to deal with VAT issues in an efficient manner
- VAT Consultants will be able to optimize your internal systems and processes and help you build in-house resources as well
- They can help businesses grow vertically and horizontally
- They can help you submit VAT returns timely
- They can help lessen the VAT burden
To sum it up, VAT consultants are the professional experts who help businesses get ahead of the VAT compliance and resolve any relevant issues. Gadlang Management Consultants is one of the leading VAT consultancy firm in UAE offering businesses in Dubai and elsewhere at each and every step of the VAT implementation process.