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What Are The Benefits Of Using A VAT Registration Company?

Author: Adnan Khan
by Adnan Khan
Posted: Apr 08, 2022
vat registration

If you are a first-timer, you must realise that VAT, or Value Added Tax, is an indirect tax levied on most products and services. First, however, this article will attempt to discuss the many benefits of VAT registration.

It would be best to keep in mind that top accounting firms in Dubai encourage businesses to register for VAT- especially those not compelled voluntarily. If their annual supplies or taxable expenses exceed the voluntary registration threshold limit, they can register voluntarily. While the law allows for voluntary registration, the main question is whether firms should file for VAT registration independently.

Is there any advantage to registering for VAT voluntarily? Here's what the top accounting firms in Dubai are saying.

Making a Well-Informed Choice

There's no denying that most business owners admit their business is not meeting the current VAT registration levels. This often makes them apprehensive about approaching VAT registration services in Dubai. However, as per the experts, this particular approach could cost you and your company a lot of money in VAT that you didn't need to pay. Therefore, it would be best to make an "educated" decision about VAT registration rather than a "linear" one.

According to the VAT registration services in Dubai, a simple Google search will assist you in determining when you are required to register for VAT. But the more crucial issue is, why should you register for VAT, and how can it benefit your business? This is where you should take a step back and devote an hour of your time to completing a VAT evaluation.

Detailed research reveals that the main goal is to opt for VAT registration only if the figures work for your company below the current level. But, again, it all comes down to plain business math. As a business owner, it is your responsibility to make the best decision for your company, suppliers, and customers based on your numbers- and not just a Google search that offers you linear and fragmented information.

Essential Advantages of Voluntary VAT Registration

1. Input VAT Can Be Reclaimed On Expenses Incurred

If you are a first-timer, you must realise that this benefit is the most significant. To put it simply, you will have to charge VAT on your customer's purchases. However, this is where you will need to undertake a VAT evaluation to determine your statistics.

Remember that there's a good possibility your company may benefit from voluntary VAT registration in Dubai if most of your consumers and clients are business clients who are frequently VAT registered. On the other hand, it may not help your business if most of your customers and clients are consumers who aren't VAT registered, but this isn't always the case.

2. Flat-Rate Plan

Secondly, this one could well be a no-brainer for some industries. But, again, you should be fine as long as your clientele is primarily B2B suppliers. Finally, the flat-rate plan is a simple way to account for VAT from an administrative standpoint. But, again, you should strongly consider voluntarily registering for VAT if the figures add up for your company.

Again, doing a VAT evaluation ahead of time will allow you to decide whether the program is or is not beneficial to your firm in the next year.

3. VAT Pre-Registration

This one is an HMRC secret that is frequently ignored. To put it simply, your business can reclaim VAT on products and services purchased before registering for VAT. In other words, a VAT recovery on products for business purposes can be backdated for up to four years, and a VAT reclaim on services can be backdated for up to six months.

4. Prestige & Placement

Lastly, it would be best to keep in mind that having VAT registration in Dubai denotes a more prominent and well-established company. On the other hand, you may be assumed that you are a tiny firm if you are not VAT registered, thereby limiting your clientele. This benefit is sometimes dismissed as negligible because it's difficult to quantify.

However, experts can confidently state that VAT-registered firms command tremendous respect and confidence from suppliers and customers, mainly corporate customers. Being VAT-exempt makes your company appear very small, and there are countless examples of reputable companies refusing to do business with non-VAT-exempt companies.

VAT Assessment

It only fits to admit that accounting services in Dubai can help you conduct a VAT audit. There's no denying that accounting professionals can determine whether or not registering for VAT will benefit your company.

Bottom Line

There are various advantages to registering for VAT, and these are especially important if you are a new firm or a start-up. You can learn more by consulting with reliable accounting services in Dubai.

About the Author

I am Adnan Khan. I have 8 years of professional experience of accounting. I work as an accountant in a firm of Accountant Dubai. Accounting Dubai is the top accounting firms in Dubai that offers accounting services in Dubai.

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Author: Adnan Khan

Adnan Khan

Member since: Apr 05, 2022
Published articles: 1

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