Value Added Tax (VAT) – Are you ready?
Value Added Tax in UAE
The much awaited Value Added Tax is just a couple of months away. Here is the 3 key elements to check readiness of your business to accept the change.
- Impact assessment: Every organization needs to have an impact assessment by considering the nature of business and type of industry. Even though the official law is not yet published, various notifications made by the Ministry can be helpful. And also, since the VAT is a globally accepted form of taxation, the basic structure seems to be the same across the globe. It is advisable to form a team to have a deep analysis and to guide the organization time to time. Recruiting a specialist also may be required considering the complexity of the organizational structure.
- Accounting & Documentation: Accountants and documents will have a major role to play in the VAT era. Calculation of tax liability and claims will be dependent on the accounting records. And supporting documents will be required to substantiating the same. Hence the entity needs to assess the reliability, accuracy and quality of the accounting division. It is also important to see the capacity of soft ware used for day today operation to incorporate the changes. If the Software is not suitable for the VAT compliance, it should be solved well in advance to avoid last minute chaos.
- Training the team: People is the most important ingredient in making any changes in the system. Proper awareness, training and tools should be given to them time to time to avoid any confusion in the implementation process. They should be update about each developments and software designing also should be made by keeping their requirements in mind.