Companies should adhere to expert advice and check the return carefully before submitting returns
Value Added Tax (VAT) is a yet a new concept in the UAE and businesses require the services of an expert that can guide them every step of the way, according to Vikas Panchal, Business Head at Tally Solutions in the Middle East.
Since the introduction of VAT, Tally Solutions has been helping more than 50,000 businesses comply with VAT regulations in the UAE and KSA. The company is a registered tax agent that helps clients achieve tax compliance, manage records and file returns in a timely and effective manner. Trusted by more than 1.2 million businesses globally, Tally Solutions includes a list of satisfied clients across GCC that use its VAT software - Tally.ERP 9 Release 6.4 for effective compliance with VAT regulations.
“The VAT return process is made up of four steps -- all conducted online as the authority seeks to simplify the filing. The Federal Tax Authority (FTA) in the UAE has created several payment methods to process any payable tax to the authority through the E-Dirham platform in the e-Services portal on its website. Loaded with the required amount, the E-Dirham card has to be purchased in advance to make the necessary preparations,” said Vikas Panchal.
Since filing VAT returns is an online process, many businesses find it tricky to successfully navigate their way around the world of VAT due to non-compliance with automated systems. In addition, rejection of applications which is due to incorrect or missing information is another challenge faced by most businesses.
“VAT has formed an important element of UAE’s economic framework. As such, it is important that businesses closely monitor their VAT submissions to ensure registration is completed accurately and on time. Businesses should implement qualified systems to file returns accurately and should also review their procurement processes, operating models and systems, contracts and legal structure, to be VAT ready at all times,” added Vikas Panchal.
VAT requires monthly or quarterly filing of returns and payments of taxes. Businesses should therefore have robust systems, adhere to expert advice on submitting returns and check the return carefully before submission to facilitate accurate filing.
GCC countries introduced VAT at a five percent rate starting 2018 as part of its wider development reforms. The UAE, along with Saudi Arabia, are the first two GCC states to implement VAT, with other countries in the GCC to follow soon.