UAE 2020: VAT Compliance is the New Priority on Executives’ Agenda
January 17, 2020
Two years since VAT been introduced in the UAE, and now going into our third year with the Federal Tax Authority increasingly introducing measures that affect how companies should manage and deal with their data and maintain their records.
This will require companies to keep detailed and precise accounting records and documents including sales invoices, purchase invoices, credit notes, Customs declarations, etc. that conform to regulatory standards while submitting timely reports to tax authorities. Tax authorities can perform a random Tax Audit to check the fulfillment of VAT requirements and compliance with Tax legislation.
Makes you think, isn’t it?
The Value Added Tax (VAT) forces your company to establish and seriously reconsider your tax compliance framework, where you’ll face challenges associated with reporting complexities and inaccuracies, records management and audits with substantial penalties for non-compliance.
VAT Compliance review targets in finding out disparities in your organizational VAT policies and appropriate procedures as per UAE VAT Laws. It is prudent to say that VAT Compliance Review is rather a necessity than an option since it’ll reinforce your organization to face a VAT Audit. To avoid falling under the prospect of non-compliance with VAT, it is always better to have a third party consultant to conduct VAT Compliance Review in your organization.
MBG’s VAT compliance review will help you in understanding the causes of non-compliance and address them for the future. It will help you in identifying the areas which require rectification while assuring the accuracy of taxes actually remitted.
We aim to support companies in meeting Tax compliance obligations, optimize costs, mitigate risks, and avoid unnecessary penalties. And we do that through different approaches:
International focus – Cross-border VAT issues are our core competency and each of our consultants has international experience.
Multi-Cultural staff – We have the necessary capabilities to deal with all VAT offices across GCC. Our staff has gained vast cross-cultural experience by virtue of working with Japanese, Chinese, Russian, Arabic & European business verticals in the Middle East Region.
Centralization of Expertise – Centralization allows us to gain efficiencies of scale and apply tight quality controls much more easily. However, we do not believe in a “one size fits all” approach to VAT procedures – we remain focused on the peculiarities of each business. While providing any advisory, we believe in 6 eyes policy review so that every work should be a double check.
Practical Approach – We believe in giving advice that provides practical solutions to our clients’ problems.
Seamless integration with our other Service Lines – Our consultancy capabilities seamlessly complement our other service offerings which as a total solution provide greater all-round benefits to our clients. The closeness to the heart of your business through these other services, help our consultants offer you more practical and focused assistance.Last Updated: 17th January 2020This article is contributed by: Vipin Ahuja Associate Director