benefits of voluntary registration especially for small businesses
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice
Emiratesvoice, emirates voice
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice

VAT In The GCC

Benefits of voluntary registration, especially for small businesses

Emiratesvoice, emirates voice

Emiratesvoice, emirates voice Benefits of voluntary registration, especially for small businesses

From 1 January 2018, any business operating
London - Emirates Voice

From 1 January 2018, any business operating in the Gulf Cooperation Council (GCC) group of nations that earns revenue of Dhs 375,000 or more, will be legally required to register as a value-added tax (VAT) vendor.

The new VAT law has come as a shock to many businesses – especially small enterprises – who are accustomed to operating in a low-tax environment. With falling oil prices and increasing global competition, GCC countries need to diversify their economies and find new revenue streams if they want to remain competitive.

Start-up and small businesses whose revenue does not match the threshold are probably breathing a collective sigh of relief. While collecting tax on behalf of the government should not be seen as a cost to the business, there are implications in terms of processes, systems and people that could incur some expenses, so it makes sense that they would avoid compliance for as long as legally possible.

But there’s a case to be made for voluntary VAT registration, and if your business records revenue of 50% of the threshold, you can put your hand up to become a voluntary VAT vendor.

Here are a few good reasons to do that:

 Forward planning. As your business scales, you might not notice when your revenue crosses the threshold for mandatory compliance. If this happens, and you’re not registered as a VAT vendor, you could be liable for penalties of a minimum of Dhs 500 and up to five times the amount of VAT that would have been payable for the period in question. By the time you do reach the threshold, VAT processes will be entrenched in your business, which is one less thing to worry about.
 Business and cash flow security. Medium-sized and large businesses that are legally required to register as VAT vendors will require VAT invoices from their suppliers in order to comply with stringent record-keeping requirements. Because of this, they may decide not to transact with businesses that are not VAT registered so that they can streamline their reporting processes. Voluntarily registering as a VAT vendor secures your place in the supply chain and contributes to a healthy cash flow.
 Perception. Businesses that are registered as VAT vendors may be perceived as being more professional and therefore more appealing to partners.
 Refunds. If the goods or services you supply are zero-rated, you could qualify for a tax refund at the end of the reporting period. Zero-rated industries include education, healthcare, transportation, property and real estate, oil and gas, and precious minerals. The law stipulates different exemptions for each of these sectors.
 Upskilling. There’s a definitive learning curve involved with becoming a VAT vendor. By upskilling your team before you are legally required to collect tax, you not only future-proof your business but also empower your team with new knowledge and skills, giving them an opportunity to familiarise themselves with the processes and requirements of compliance.
 Systems upgrade. To stay on top of the stringent record-keeping requirements of the new VAT law, you’ll need a robust accounting solution that not only automates processes like VAT invoice and credit note production, but that also keeps a record of all transactions for reporting purposes. It can take between nine and 12 months to fully prepare your systems for VAT, so the earlier you start, the lower the risk of incurring penalties.
Small businesses might be tempted to put off VAT registration for as long as possible, but if you have ambitious growth plans, sooner or later, you will have to comply. By partnering with a trusted and experienced business partner like Sage, you can ease into compliance and proactively get your systems, processes and skills in order before the taxman comes knocking.

VAT is nothing new and nothing to fear. It will take some adjustment and learning, but the additional revenue flowing into GCC nations will go a long way to maintaining effective public services and positioning GCC countries as globally competitive nations with truly diversified economies.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

benefits of voluntary registration especially for small businesses benefits of voluntary registration especially for small businesses

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

benefits of voluntary registration especially for small businesses benefits of voluntary registration especially for small businesses

 



GMT 15:05 2017 Thursday ,08 June

UAE Weather: Temperature set to touch 46°C today

GMT 09:21 2012 Friday ,13 April

Chances of rain in the UAE

GMT 18:01 2011 Saturday ,12 November

Masdar set to launch Seychelles wind farm by end-2011

GMT 17:11 2017 Sunday ,19 November

South Africa eyes 2023 Rugby World Cup

GMT 21:22 2017 Saturday ,10 June

Moroccan minister

GMT 07:28 2017 Tuesday ,07 November

Now,Dubai cafes introduce special food

GMT 12:38 2016 Monday ,14 November

2016 'very likely' hottest year on record

GMT 08:03 2017 Thursday ,02 November

Abdou blames targeting Khan Yonis

GMT 10:51 2017 Thursday ,23 March

Fire damages historic Ottoman mosque in Greece

GMT 05:14 2024 Wednesday ,07 February

Sophisticated Classic Dining Room Design Ideas

GMT 00:14 2017 Friday ,13 October

Army kills mercenaries in Kahbob, Lahj

GMT 19:04 2017 Thursday ,08 June

Qatar sympathisers in Bahrain to face fine, jail

GMT 14:29 2017 Wednesday ,02 August

Man City winger Navas returns to Sevilla

GMT 10:51 2017 Friday ,26 May

Labour Minister meets Thai envoy

GMT 19:56 2011 Wednesday ,24 August

Foreign investors keen on Bahrain

GMT 05:06 2017 Tuesday ,15 August

Speaker condoles with UAE

GMT 20:23 2017 Thursday ,07 September

Arab League condemns violence against Rohingya Muslims

GMT 09:58 2017 Wednesday ,31 May

Emirates Red Crescent signs agreement

GMT 10:23 2017 Saturday ,21 October

Yemeni official survived an armed ambush in Lahij

GMT 02:55 2016 Wednesday ,22 June

Serena battles rivals, self-doubt at Wimbledon

GMT 12:23 2017 Thursday ,09 February

Security consultant denies 'bugging' All Blacks

GMT 09:36 2016 Thursday ,07 July

Sacked Fox News host files sexual harassment suit

GMT 09:21 2015 Saturday ,05 December

British play to feature all 74 Shakespeare deaths
Emiratesvoice, emirates voice
 
 Emirates Voice Facebook,emirates voice facebook  Emirates Voice Twitter,emirates voice twitter Emirates Voice Rss,emirates voice rss  Emirates Voice Youtube,emirates voice youtube  Emirates Voice Youtube,emirates voice youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

emiratesvoieen emiratesvoiceen emiratesvoiceen emiratesvoiceen
emiratesvoice emiratesvoice emiratesvoice
emiratesvoice
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
emiratesvoice, Emiratesvoice, Emiratesvoice