All the companies based in the UAE have to abide by the VAT rules put forward by the Federal Tax Authority. However, in order to be fully compliant companies have to ensure correct implementation of VAT in all business functions. With the pressure of growth, changes in economy, plummeting sales and rising expenses, it is too much to ask businesses for additional compliance. Moreover, the fact that a failure to comply brings forth a huge penalty for companies is an added difficulty for businesses because it results in an unwanted cash outflow, which in turn causes a deterioration in the financial position of the company.
In an effort to solve this problem for companies, ACCBOOKS has come forward to provide relevant assistance to those businesses who wish to outsource the book-keeping and VAT-related tasks to a trusted firm. Most importantly, ACCBOOKS provides VAT assessment in accordance with the UAE tax laws, this gives businesses additional time to solve other problems and become more efficient. ACCBOOKS carries out the assessment for companies in a step-by-step manner, as is given below:
Step 1: Understanding the Business
The first step in VAT assessment is about gaining an understanding of the client’s business, for example, comprehending the dynamics of the industry it belongs to, knowing its competitors, its operations, its vision and mission statements, its financial statements and more. This gives ACCBOOKS an idea of the extent to which VAT will have to be assessed for a particular client.
Step 2: Procurement Activities
As procurement comes at the top of the supply chain, it has to be assessed at the second stage. ACCBOOKS accounts for the VAT paid at each stage so as to be able to claim a refund for the client at the end of the tax period. All invoices and records are maintained to help during input tax refund claim.
Step 3: Operations and IT
The cash flow of the business is monitored profoundly by ACCBOOKS at this stage, including its credit policy, automated systems, outsourcing activities, billing system and so on. This strengthens internal control, brings stability to the client’s day-to-day operations and removes any chance of making erroneous entries.
Step 4: Sales Activities
The experts of ACCBOOKS accompany their clients till the end of supply chain and beyond. The sale of goods and services involves a large amount of VAT collection from the end consumers, so the firm assists companies by ensuring that the correct treatment of VAT occurs for every sales transaction. Sales returns, pricing, discounts, and all different modes of sales are reviewed at this stage as well.
Step 5: Accounting and Finance
The last stage mostly deals with recording, reporting and payments. VAT exemptions, deductions and leakages are carefully identified in this step. Filing of VAT returns and following-up is also included in the final step of assessment. Furthermore, at this time the team also tries to make forecasts and carefully analyses the impact that VAT may have on a client’s business contracts or plans. This information is then communicated to the relevant department.
ACCBOOKS has a reputation of providing a reliable VAT assessment. This has become possible only because of the determination of its personnel; the professionals are always willing to go an extra mile to excel in their projects, the consequence of which is satisfied clients and fully compliant businesses.