A person planning to make a business transfer should know the VAT guidelines centered around the TOGC i.e. Transfer of a business as a going concern. According to Article 7(2) of the Federal Decree-Law No. (8) of 2017 on VAT “transferring the whole business or an independent part of the business from a person to a taxable person for the reason of continuing the business (TOGC) is not treated as a supply for VAT purposes. These are a type of business asset transfers, which is not treated as supply, hence no VAT can be imposed.
Here are the conditions for any transfer business to be treated as a TOGC which is not subject to UAE VAT
The transfer of a whole or an independent part of the company
When an owner decides to make a transfer of its business, it should involve a complete takeover of the business or independent part of the business by the purchaser and not just transfer of assets as the latter does not qualify the conditions for TOGC. The transferred business should be in a working condition before and during the time of making the transfer so that the purchaser finds no difficulty in running the business.
A buyer is a taxable person
For a transfer of a business to be treated as a TOGC, the buyer must be a taxpayer at the time of transfer. This means he/she should be registered for VAT or has applied for the VAT registration and that application has been approved by FTA.
The buyer should genuinely be interested in running the business
The buyer’s intention for running a business should be genuine. They should continue the business exactly the way it was handed over to them without making any fundamental changes in the business. At the moment, there are no restrictions about how long a buyer should run a business however, what matters is the genuine intention of the buyer for running it.
Federal Tax Authority (FTA) has also clarified the concept of an asset sale, share sale, business sale. Details are as below: –
Asset sale and share sale
There’s a difference between share sale and an asset sale. A company is easily sold or bought using the shares sale. Because the company is not directly involved in the transaction, so such share transfers don’t affect the ongoing business operations, and everything stays the same except for the change in the ownership. The new owner takes over the company with all its assets and liabilities which also includes the company’s existing tax obligations.
While in the assets sale because only assets get transferred there is no change in the ownership of the businesses. The buyer of assets has nothing to do with the existing liabilities of the company. TOGC is a type of asset sale, which should qualify above mentioned three conditions and not a share sale.
Assets sale and business sale
On one hand, there’s a normal asset sale and on the second there’s asset sale involving TOGC. When a taxable person sells the assets of its company, it’s treated as a taxable supply since its supplying a good to the buyer and therefore VAT gets included. However, when the sale of assets happens as a part of TOGC, there is no real supply of goods, hence no VAT is applicable.
For example, a business owner decides to sell it’s a machinery that will be eligible for VAT. However, if the owner decides to sell ‘all machinery related to one business unit along with factory space’, which can be run independently, it should be treated as a Transfer of a business as a going concern (TOGC), meaning it is not subject to UAE VAT.
We, Shuraa Tax and Accounting Services LLC, are among the best VAT Companies in Dubai, promising to give you the best Tax agency, VAT registration, and consultancy services in the UAE. To inquire more, contact our expert team members and know more about the VAT guidelines under TOGC.
The taxation rules in the UAE underwent a modification in 2018. Over 170 nations impose VAT as a means to improve revenue with UAE also doing the same to boost overall revenue. Value Added Tax, also known as VAT, went into effect on January 1st, 2018, in UAE. According to UAE VAT Law, 5% of the price of delivered goods and services are subject to VAT.
In certain places, VAT is also called as a consumption tax or a goods and services tax (GST). The final consumer in the UAE is responsible for paying Value Added Tax (VAT) at every stage of the supply chain. Businesses, on the other hand, represent the government by acting as agents to collect and account for taxes.
Read on the points or simply watch the video to understand the UAE VAT procedures –
https://www.youtube.com/watch?v=tDTSIZrJXvk
1.) What is VAT?
A levy known as Value-Added Tax (or VAT) is imposed on the majority of products and services that are supplied. One of the most widespread consumption taxes in the world is this one. The Goods and Services Tax (or VAT) is present in more than 170 nations, including all 29 EU member states, Canada, New Zealand, Australia, Singapore, and Malaysia. At each point of the supply chain, VAT is calculated. Typically, businesses collect and account for the Tax, but the final consumer is responsible for paying the VAT. Businesses collect the taxes on behalf of the government.
2.) When should businesses register for VAT in the UAE?
VAT registration in the United Arab Emirates falls into two categories: mandatory VAT registration and voluntary VAT registration.
The two main methods for registering a VAT in the UAE are as follows:
Voluntarily registering for VAT:
If a business’s annual (or less for new companies) taxable turnover and imports reaches AED 187,500, it may choose to voluntarily register for VAT.
Mandatory VAT Registration:
Businesses with annual (or less for new companies) taxable turnover and imports of more than AED 375,000 or expected taxable revenue is more than AED 375000 must mandatorily register for VAT.
Note: Companies in the UAE are not required to register for VAT if their annual taxable turnover and import is less than 187,500 and expected revenue is nil.
3.) What are the UAE’s VAT exemptions?
The UAE Executive VAT Regulations list the exempt supplies that are not taxable.
According to UAE VAT Law, a person is not eligible for an input tax credit on purchases they make if they supply UAE VAT exempt goods and services.
Consider a manufacturer who purchases raw materials at a 5% tax rate and creates tax-free goods or exempt goods as an example. In such a situation, he will be responsible for paying the 5% input tax on the raw materials because he will be unable to claim the input tax credit.
In addition, the UAE exempts several financial services, residential property supplies, the supply of bare land, etc. from paying VAT.
4.) Important records to retain
In addition to accounting records (payments, receipts, purchases, sales, revenues, and expenses), all firms, registered and unregistered, must keep financial records such as balance sheets, profit and loss statements, records of fixed assets, payroll, inventory, and stock levels if any.
Changes to a company’s basic practices, financial management processes, methods for maintaining accounting records and books, technology used in those practices, and human resources (accountants, tax advisors, etc.) may all be necessary.
5.) Which products are subject to VAT in the United Arab Emirates?
Most products and services in the UAE charge VAT @ 5%, which are not exempt or zero rated, or out of VAT scope. Items like office supplies, school uniforms, extracurricular activities, transportation services, automobiles, oil and gas, electronics, cellphones, second-hand goods, import goods, as well as insurance coverage for health, motor, property, reinsurance, water, electricity, etc, are liable to charge VAT.
6.) What services in the UAE are subject to VAT?
In the UAE, certain services are in fact subject to VAT, including plastic, cosmetic, or elective surgery, education offered by private higher education institutions, fee-based financial services, automobile servicing, repairs, catering services, hotels, and restaurants, as well as telecom and electronic services.
7.) UAE VAT liability payment by the deadline
In the UAE, the 28th day of the next month serves as both the deadline for filing the VAT return and the deadline for paying the VAT liability. Deadline will be shifted to the very next day if 28th is public holiday. You can pay VAT liability to FTA in a number of ways, including by bank transfer, or credit card. Processing times and fees vary depending on the mode. Charges for credit card payments are between 2 and 3 percent. The bank fees determine the cost of a bank transfer.
8.) What is the process in the UAE for filing tax returns?
A VAT-registered company submits a quarterly VAT Return. As a result, the authority may require specific enterprises to submit a return each month in order to verify compliance with the VAT Laws and lower the likelihood of tax evasion.
A registered business must fill out the VAT Return Format according to UAE VAT Executive Regulations. All VAT-registered firms in the UAE submit their returns by logging in to the FTA portal because the return filing process is entirely online.
9.) How Does the VAT Audit/Tax Audit System Work in the United Arab Emirates?
A field tax audit is when the FTA conducts a VAT audit or tax audit in the UAE at the company’s or person’s business location.
The taxable person typically provides all the data in the FTA Audit File (FAF), a format that has been prescribed. The UAE requires businesses that register for VAT to keep thorough financial records of all transactions in order to submit periodic VAT returns.
FTA chooses which companies to audit for taxes at its discretion. A VAT audit also seeks to confirm the accuracy of a taxable person’s tax liability.
The FTA has the right to request original copies of any records during a tax audit, check the business’s assets and inventories, and even confiscate them if necessary.
Additionally, the taxpayer or his tax agent must support and assist the tax authority by offering all required documentation proof.
The FTA has the authority to issue a notice to the taxable person asking him to pay the VAT along with penalties if it discovers anomalies after reviewing his financial and tax records.
10.) What are a Business’s Primary Responsibilities in the UAE?
Any business primary responsibility includes the following:
Maintain accounting records while making sure that the account information is correct.
Register for VAT within the deadline if the minimum or mandatory turnover requirements are met.
In case the turnover is below the minimum criteria, keep accurate financial records to demonstrate why it is not required to register for VAT.
If it has a valid TRN, it can charge VAT on both taxable products and services.
Declare an input tax credit for the VAT you paid when buying taxable suppliers.
Timely submission of VAT returns.
If the amount of VAT charged exceeds the amount of VAT paid, you must pay taxes to the government.
Comply with UAE VAT laws.
Conclusion
As we know, getting our taxes in order is not as easy as it seems. Our tax experts do, however, put our words into action. The characteristics listed above are parts of who we are, and we are proud of each one. Shuraa Tax are the top pick for businesses looking for the best tax consulting firm in the UAE because of this.
We provide you with the representation you require to win over investors and stakeholders. In addition to being your tax associate, Shuraa Tax is also your growth partner.
We would be honored to be a part of your success story if you are looking for the best tax and accounting consulting in the UAE to handle the full procedure. Call us on or WhatsApp at +971508912062 or email us on info@shuraatax.com.
If a taxpayer makes an error or omission in a Tax Return, Tax Assessment or Tax Refund application Voluntary Disclosure can be filled. The Federal Tax Authority (FTA) has introduced a VAT voluntary disclosure form 211. It helps the taxable persons to rectify the errors committed while filing their UAE VAT return.
When can taxable person submit Voluntary Disclosure?
If taxable person is aware that a Tax Return submitted to the FTA has errors is incorrect then a Voluntary Disclosure Form can be submitted.
If taxable person become aware that a Tax refund application submitted to the FTA is incorrect, which resulted in calculating the refund amount to which you are entitled according to the Tax Law, being more than it should have been, then Voluntary Disclosure must be submitted to correct such error.
Is it compulsory to submit Voluntary Disclosure if errors are made while filing Tax Returns?
Yes, it is compulsory to submit Voluntary Disclosure, however under two conditions Voluntary Disclosure can be avoided.
If the difference in amount of tax paid and should have been paid is not more than AED 10,000 and
If taxable person can correct the error during the period of filing tax returns.
What are the criteria to submit Voluntary Disclosure?
If due to the error, payable tax is more than tax required to be paid (which could be more than AED 10,000) then voluntary disclosure must be filed. The voluntary disclosure should be filed within 20 business days from the date when the taxable person become aware of the error.
If due to the error, payable tax is less than tax required to be paid (which could be AED 10,000 or less)
Correct the error in the return period in which error is discovered. Time limit will be within the due date for filing the respective tax return.
If there is no means through which errors can be rectified and the unpaid tax liability if less than AED10,000 then voluntary disclosure should be filed within 20 business days from the date when the taxable person realised about the error.
What are the supporting documents required to submit Voluntary Disclosure?
Along with voluntary declaration a letter needs to be filed which should be explanatory of facts and details of errors. It is also important to mention the reasons because of which Voluntary Disclosures has been submitted. Supporting documents should be uploaded in this section along with mentioned letter.
Are there any penalties for submitting Voluntary Disclosure?
There are 2 types of penalties for submitting Voluntary Disclosure.
A fixed penalty of AED 3,000 is applied for submitting Voluntary Disclosure for the first time.
Repeated submission of voluntary disclosure could cost a penalty of AED 5,000 or more.
Nevertheless, the FTA also penalises based on percentages as showcased below –
If Voluntary Disclosure is filed before the authority notifies to taxable person and before any tax audit, then a 5% of the tax amount which was not disclosed earlier is charged as penalty.
If Voluntary Disclosure is filed after the authority notifies for a tax audit but before starting the tax audit, then 30% of the unpaid tax amount is charged as a penalty.
If Voluntary Disclosure is filed after start of tax audit, then 50% of the unpaid tax amount is charged as penalty.
For any VAT related query please speak to our VAT and Tax Return experts. Call us on +971508912062.
In accordance with the UAE Federal Tax Authority, companies in the UAE have to record their financial transactions for UAE tax filing every interval. Tax filing also referred to as VAT return filing has to be done by a taxable person at regular intervals depending upon the company’s tax period.
Business and commercial entities are to ensure that their financial records are accurate and up to date. The companies need to ascertain that in order to file tax in Dubai or anywhere across the UAE they also have to maintain all the monthly, quarterly and a yearly financial transaction made under the company.
The Federal Tax Law stated that commercial entities require to maintain company accounts, records, and commercial books. Also, the company needs to keep all the documents related to taxation, such as older tax returns, documents related to the FTA, etc.
Although the documentation or records may vary from company to company – Shuraa Tax Consultants and Accountants have listed the most relevant documents that any business must record for UAE tax filing and to make it available to FTA if requested in future.
Companies must maintain records of all supplies and imports of goods and services for tax filing.
For tax filing, they must record tax invoices, tax credit notes, alternate documents for goods and services received.
For tax filing, they must have a record of tax invoices, tax credit notes and alternate documents issued.
Businesses should also keep a record of goods and services that have been disposed of or used for matters not related to the business.
A detailed record of VAT paid on the unused or disposed goods and services must also be documented.
Records of goods and services purchased for which the input tax was not deducted.
Records of exported goods and services in order to file tax returns.
Records of adjustments or corrections made to accounts or tax invoices.
Records related to Capital Assets like a register of capital assets, Input tax on a capital asset, related adjustments for at least ten years.
Output tax due on taxable supplies and output tax due on taxable supplies accounted for via the reverse charge mechanism.
Any records related to a real estate required to be kept shall be held for a period of 15 years after the end of the Tax Period to which they relate.
In addition, companies should keep a VAT record or account which shows:
Output due on taxable supplies
Output tax due on based on reverse charge mechanism
Output tax due after the correction of any errors or adjustments;
Input tax recoverable on supplies or imports;
Input tax recoverable after the correction of any errors or adjustments.
Failure to keep the required records and other information as per the Tax Procedures Law and the Tax Law will attract a penalty of AED 10000 for first-time failure or AED 50000 in case of repetition. There are other penalties related to failures in record keeping and submitting details requested by authorities.
We are Shuraa Tax Consultants and Accountants do not only do tax filing but also offer you tax return preparation services. Our tax and accounting consultants make sure that you have every document recorded for tax filing. At Shuraa Tax we offer you certified tax preparer that is well aware of the various tax laws applied by the FTA for tax filing in the UAE.
So, if you are doubtful on how to file your own taxes or are searching for the right tax filing consultants – simply speak to our taxation experts or tax and accounting consultants.
Tax Agent is “An agent registered with the Authority, who is appointed by a person to act in his name and on his behalf regarding his tax affairs to represent him before the Authority and assist him in fulfillment of the tax obligations.
The definition and provision related to Tax Agent are clearly defined in Article 12, 13,14,15,16, Chapter 2 of Federal Law Number 7 of 2017 on Tax Procedures.
Tax Agents basically help taxable people to meet the requirements that are set by the government for the tax system. The responsibility of a tax agent is to enable the Company to fulfill the tax compliance effectively.
Benefits of a UAE tax agent are listed below:
A UAE Tax Agent offers freedom from legal representation, as a Tax Agent will always act and represent the Company legally and be in accordance with the Federal Tax Authority (FTA).
UAE Tax Agents ensure that the taxable persons are complying their obligations as tax-registered businesses.
Tax agents represent the taxable Companies by registering the Companies with the FTA. Tax Agent helps in submitting tax returns in a timely manner.
UAE Tax Agents can be contacted by the taxable entities for tax advice. Tax Agent does not only help through the procedural matters but also guides the Companies to avoid any unforeseen events or fines.
Tax Agent can also represent foreign companies that do not have their establishment/offices in the UAE. On behalf of the foreign Company, the Tax Agent collects the tax amount from their customers and makes the payments to the Federal Tax Authority (FTA).
Having a Tax Agent in UAE is also beneficial as they are aware of the latest amendments in the commercial and tax laws. They caution the companies beforehand as well as help to maintain the integrity of the country’s tax system.
As per Article 16, Chapter 2 of Federal Law Number 7 of 2017 on Tax Procedures, FTA may request for any tax-related information, documents or records related to tax affairs of the Company represented by him. A Tax Agent can assist the taxable entities in case of an inspection by the Authority and provide relevant legal and accounting details to the FTA inspector.
Having a Tax Agent also eases the communication, follow up with the Federal Tax Authority (FTA) and offers quick solutions.
Before understanding the need for an FTA tax agent in UAE, it is crucial to know who an FTA tax agent is. As per the Federal Law Number 7 of 2017 on Tax Procedures, a Federal Tax Authority Tax Agent also commonly known as an FTA Agent is an individual appointed for a Company to act in his name and on his behalf for his tax affairs.
However, not everyone can become a tax agent in UAE. Individuals need to fulfil the mandatory requirements imposed by the Federal Tax Authority to become an FTA tax agent. The FTA has specified conditions and qualifications, in addition to passing the Authority’s tests to become a tax agent in Dubai UAE.
So, why exactly would Companies require an FTA tax agent in Dubai?
An FTA tax agent’s key role is to successfully implement UAE tax systems for your company. Nevertheless, there are a lot of contributions an FTA agent makes towards the taxation functioning of a company.
Some of them are listed below:
FTA Tax agents strengthen ties between the Federal Tax Authority and the taxable persons.
FTA tax agent in UAE provides advanced knowledge and extensive practical experience which ultimately benefits the company.
A tax agent represents any entity or individual before the Authority, helping them meet their tax commitments and know their rights.
Tax agents help businesses be tax compliant, manage records, meet standards accurately, avoiding errors in registration.
FTA tax agents in Dubai are basically strategic partners for the companies. With businesses to fulfill their tax obligations toward the Authority, tax agents provide services such as filing returns, internal tax audit and prepare needed accounting procedures for tax compliance.
Tax agents are required to be fluent in Arabic and English. Because of which, companies can be locally efficient in terms of Arabic and translate documents effectively.
FTA agents can also submit requests for reconsideration of decisions issued by the FTA.
Tax agents can be helpful to represent foreign & offshore companies before FTA.
If you are looking out for a competent tax agent in Dubai, then SHURAA’s Tax Agents can help you! Shuraa Tax Consultants offer FTA certified tax agents to manage all your requirements related to tax services, tax consultation and VAT registration in the UAE.
The Federal Tax Authority (FTA) recently clarified the exchange rates to be used for tax invoices which are raised in AED as well as in other foreign currencies. This was announced through VAT Public Clarification VATP004.
According to the FTA, companies issuing tax invoices in foreign currencies will make use of the exchange rates applicable as per the date of supply. The circular also stated that only the exchange rates mentioned and documented by the UAE Central Bank are to be used in the tax invoices.
The clarification was circulated to UAE companies in May 2018. Several companies were uncertain if they had to reissue the old invoices (i.e. an invoice dated from January 2018 until the date of clarification 17 May 2018). However, to everyone’s relief, the FTA also quoted that, “There is no requirement for businesses to reissue historical tax invoices from periods prior to 17 May 2018 to show the Central Bank exchange rate, provided the exchange rate used is from a reliable source and the same source has been used consistently.”
Nevertheless, the FTA also noted that in case a tax invoice was issued after the 17 May 2018 and the date of supply was before 17 May 2018, companies need to make use of the older exchange rates published under the UAE Central Bank which were published in January 2018. According to the circular, business entities need to make use of exchange rates provided by the Central Bank of the UAE. The circular also said that in terms of failure to account for the due tax on imports as per the FTA tax compliances there could be penalties.
If you as a company are still not sure how to get your tax invoices tax compliant, book a VAT consultation with Shuraa Tax Consultants in Dubai. For more information call a Shuraa tax consultant in Dubai. Simply call on +971508912062. You may also drop in an email on info@shuraa.com or read more about Shuraa Tax Consultants on www.shuraatax.com.
In a press release published by the Federal Tax Authority (FTA) recently, they determined the three main categories of ‘eligible goods’. The eligible goods were classified for calculating the VAT – Value Added Tax in the UAE. VAT on the eligible goods will be calculated based on the profit margin scheme.
The classification of edible goods are stated below –
Second-Hand Goods – Such as tangible moveable property, suitable for future use or upon repair.
Antiques – Goods that are older than 50 years.
Collectors’ Items – Such as stamps, coins, currency, scientific pieces, historical or archaeological artifacts, etc.
FTA in the press release also noted that only the goods which had been subject to VAT before the supply may be subject to the profit margin scheme. The FTA also defined the profit margin scheme, they said that it will be considered as the difference between the buying and selling price of the item which includes taxes.
The initial announcement about the eligible goods under the profit margin scheme was made in a “Public Clarification” as per the Federal Decree-Law No. (8) on Value Added Tax.
Reportedly, the FTA informed the registered businesses to carefully verify eligible goods for the profit margin scheme. As a result, stock on hand of used goods that were attained prior to the effective date of Federal Decree-Law No. (8) on the VAT, or goods that have not previously been subject to VAT for other reasons, are not eligible to be sold under the profit margin scheme. VAT is, therefore, due to the full selling price of these goods, the release stated.
The press release further explained that registered businesses may apply the scheme to eligible goods in situations such as:
If the goods were purchased from either a person who is not registered for VAT or a Taxable Person who calculated VAT on the supply by reference to the profit margin,
If the taxable person made a supply of goods where input tax was not recovered in accordance with Article 53 of Cabinet Decision No. (52) of 2017.
The press release also said that a taxable person will not be allowed to apply the profit margin scheme in cases where they had issued a tax invoice or any other document mentioning an amount of VAT chargeable. They further mentioned that Taxable Persons must keep inventory and similar documents that clarify the situation of every item bought or sold. Also, purchase invoices with complete details of items bought under the profit margin scheme must be specified.
If you are still not clear on the profit margin scheme or would want to know how to impose VAT in UAE simply contact Shuraa Tax Consultants for more details. You may call us on +971508912062.
Yes, all commercial properties are subject to VAT in Dubai as well as all over the UAE. The Federal Tax Authority (FTA) and the Dubai Land Department (DLD) are in agreement to charge 5% VAT on commercial properties and related real estate services.
As per the authorities, any sale or purchase of a vacant commercial property or the off-plan sale of commercial properties – which could be under the building license is subject to 5% VAT.
Nevertheless, the value-added-taxpaid during the lease period can be recovered by the tenant, if they are taxable and are registered as well as entitled to a tax refund. Value-added-tax paid towards the purchase of an entire building may be refunded depending on the capital asset scheme. For example, if the cost of the property exceeds Dh5 million.
Also, real estate services related to such commercial properties are also subjected to VAT in Dubai, UAE. VAT is also applied to management fees, brokerage and other real estate consultancy charges are subject to 5 % VAT. These charges are levied and taxed on the value of the service provided at the given location of the property and according to the normal taxation standards.
Is VAT applicable on residential properties as well?
No, VAT in Dubai as well as in any other Emirates is not applicable on residential buildings and residential properties such as villas, accommodation for armed forces, elderly homes, nursing homes, etc. Residential buildings are not taxable if sold or rented, but this law is not applied to buildings not fixed on lands, buildings offering services in addition to housing, hotels and hotel apartments, etc. Also, real estate transactions related to residential buildings are zero-rate.
Residential properties constructed recently by developers or business entities are eligible for a tax refund if the supply is made within three years after the completion certificate.
However, residential property leased out on a short-term basis to non-residents falls under the commercial category. If a lease is less than six months and the person living there doesn’t have an Emirates ID, it would be deemed commercial from a VAT perspective.
So, is there VAT applicable if you buy a commercial building and convert it into a residential building?
If you purchase or even rent a commercial property and convert it into a residential building, you are entitled to get a refund on the tax paid within a period of three years from the date of transfer.
However, for mixed-use buildings – the residential area will be zero rate or exemption from tax; whereas the commercial area will be subjected to VAT in Dubai, UAE. The area will be converted into a percentage of VAT allotment.
Will a real estate or property owner require tax registration in Dubai, UAE?
No, property owners of the residential real estate do not have to register for VAT in Dubai or elsewhere in the UAE, if they do not have any other business. In case, if residential property owners have other commercial businesses, then they should consider registering VAT in Dubai, UAE.
On the other hand, the owners of commercial properties must register for VAT in Dubai or any other Emirates if they exceed the threshold of supplies for the commercial property. If the value of supplies exceeds the threshold of 375,000 AED in a year – then VAT registration becomes mandatory.
Is VAT also applicable on rented properties?
VAT is not applicable on residential rented properties, however, rented commercial properties are subjected to 5% VAT in Dubai as well as across the UAE.
One thing all well-established firms have in common is up-to-date accounting and bookkeeping. Successful organisations can only function effectively when a dedicated crew keeps daily records that can be accessed at any time. And that is the mark of a stable and trustworthy business. Accounting and bookkeeping services in Dubai are not the same thing. They are the foundation of accounting because they keep a clear record of the day-to-day transactions that allow businesses to run smoothly.
Accounting and bookkeeping services for business entities: method and need
The double-entry method is the most often used accounting and bookkeeping system, in which each transaction is recorded simultaneously in the two related accounts. To keep the firm’s financial balance, the entire debt must match the total assets.
As previously stated, Accounting & Bookkeeping relates to the keeping of everyday business records.
Small business accounting and bookkeeping services
Initiating a start-up or starting a business entails tasks at several levels that must be recorded for various divisions involved in distinct operations to run smoothly. Accounting and bookkeeping services are critical to any organisation, regardless of size. Keeping this in mind, the computer industry has created customised software for small businesses to help with bookkeeping. For example, Zoho, Tally, Quick books, Zero. However, employing this technology to keep records necessitates the use of specialised staff who are trained to handle the records using the software to avoid confusion and to assist you in maintaining uninterrupted business processes.
Dubai accounting and bookkeeping services
So, Dubai is a global financial centre. However, the ruler’s aim of becoming the world’s largest commercial magnet drives the emirate. As businesses evolve, there will be a greater demand for accounting and bookkeeping services in Dubai, paving the path for additional growth for Accounting and Bookkeeping Mentors. All corporate entities in the UAE are required by law to follow the accounting standards and regulations established by the International Financial Reporting Standards (IFRS).
Cost of accounting services in Dubai
Accounting work type:
Whether you need to file your VAT returns in the UAE, maintain your company’s bookkeeping, seek tax or VAT advice, or register for VAT in the UAE, the nature of activity will determine the cost. The cost of accounting services in the UAE varies according to the type of accounting services provided. If you need to engage a full-time bookkeeper, you will have to pay more money and he may have limited experience, but an outsourced accounting firm will work on all types of accounting tasks and will be much less expensive.
Size and intricacy of the organisation
Size and intricacy of your organisation will also influence the cost of accounting services in Dubai. However, You could be a freelancer or a lone proprietor with only one bookkeeper, or you could be a larger corporation with an administrative assistant and a CPA to handle your taxation. A complex industry with extensive accounting standards may necessitate the use of specialised talents, resulting in a higher fee.
Number of transactions / turnovers of the company:
Another key aspect in determining the cost of bookkeeping and accounting services in the UAE is the company’s turnover. So, UAE taxes are levied based on the commodity, jurisdiction, or yearly sales of the company. They do, however, assist in considering the accounting service charges that will be assessed.
Industry / business activity:
Accounting and bookkeeping service costs in the UAE may vary from one business to the next. You may be in the trade sector or require bookkeeping services for a restaurant, real estate bookkeeping, small business bookkeeping, or another industry – the cost will vary.
Why should you outsource your accounting and bookkeeping to Shuraa?
Maintaining a book of accounts can be difficult, especially for foreign businesses. In such a case, having a staff specialised in Accounting and Bookkeeping would be excellent; Shuraa encourages very high standards of Accounting and Bookkeeping practises, allowing you to be carefree and more focused on your key company agendas.
We are qualified to provide customised modules based on the structure of your organisation. We provide financial assistance to your company to establish a solid foundation for future growth and expansion into other parts of the world.
Affordable accounting and bookkeeping services in Dubai
If you hire an in-house bookkeeper, you must pay a monthly salary, allowances, corporate facilities, & benefits. Outsourcing accounting and bookkeeping services in Dubai will cost you an average of AED 10,000 to AED 20,000 annually.
Contact Shuraa Tax Consultants to learn more about the primary benefits of outsourcing bookkeeping services in Dubai. To receive a customised quote for your UAE accounting services. Call +971508912062 or contact info@shuraatax.com to schedule a free consultation with SHURAA Tax Consultants for accounting and bookkeeping services in Dubai, UAE.
