Over the past few decades, the businesses and investment in various parts of UAE have seen a significant rise. Thanks to various reforms and resultant business-friendly policies, UAE is now more commercially active than ever. That is what all these reforms targeted as well. Now that business is flourishing in UAE, as new reforms as being made, more and more businesses will require assistance with adapting those changes.

Why is there a growing demand for VAT consultants in UAE

Introduction of Value Added Tax in the economy:

UAE has undergone several reforms and it’s something that’s lead to the prosperity of the UAE economy. 2018 was a year of landmark reforms for Arabian states. Several changes were introduced and enforced throughout the year in correspondence to the visa system, tax, and economy.  One of the early introductions, the application of VAT from January 2018 is one of the most important. Value Added Tax was introduced for the first time in the economy. It is one of the major and obvious factors that boost the need or demand for VAT consultants in UAE.

Resulting in an ultimate 3% to 5% rise in prices and possibly the cost of living, the introduction of VAT in UAE was sure controversial, but it was also inevitable. Most of the modern economies across the globe have VAT charging system. Working towards improving the standardization of various business practices, the introduction of VAT was quite important. Despite the controversy, many are accepting it easily, understanding its importance in the context of the economy.

Now, given that the Value Added Tax is a relatively newer term for UAE residents, they might need Tax accountants or VAT consulting firms in UAE to help them and guide them. Even the small or moderate businesses or retailers might not be very comfortable with handling VAT. Thus, it is important to have someone with the knowledge of VAT to be there to assist you. VAT agents in UAE will service the role of making the relevant adjustment and meeting the new reform requirements.

The tedious task of restructuring business policies according to new reforms

As many of the businesses have already experienced in this short while, the 2018 reform not just singularly affect the finance department. Instead, it influences the product, marketing, and several other factors and departments in relation to both small and large businesses. Firms will have the re-evaluate and restructure the pricing mechanisms and have to make provisions for the collection of the new tax from the clients or customers. Further, there have to be correct provisions of getting the collected tax to the government by filing periodically with the tax department.

Update needed in the accounting software or ERP systems

Numerous business in the UAE has been using one or other kind of ERP software to ease up their business tasks. The businesses that are using such automated or semi-automated systems would have the tedious task of incorporating VAT in their system. The accounting systems will have to be updated with the help of Value Added Tax professionals to ensure accurate maintenance of the business books and records. These would be critical to comply with the provisions without messing up the whole accounts.

If you too have been struggling with the integration of VAT with the ERP of your business, VAT consulting services will certainly be able to help you.

Not just big producers, but businesses at every level require VAT assistance

Unlike some other reform policies matter to or have an influence on some particular group, VAT related policies influence everyone. From the biggest manufacturers to the retailers, VAT has to do with the entire supply chain. As a matter of fact, the companies which operate at an international level may not find coping with VAT as difficult as smaller or the local businesses would do. This is mainly because these big players may be already acquainted with the concept of VAT as they operate in countries with VAT long in practice. Even those who trade with countries in America and Europe have an idea of this. This would mean that many of the international entities and large-scale companies might have related tax provision in their system which they can easily adapt. On the other hand, small and local businesses may find it a bit overwhelming as they might not be completely new to the concept.

So, it is obvious that the need for VAT consultants in UAE will not be restricted to businesses of a particular scale. The resultant increase in demand is pretty obvious. It is advisable that, if you too own business in UAE, hire a VAT professional for the assistance.

Why should you hire a VAT consultant in the UAE?

You saw why the importance of VAT professionals just went up. At this point, you may choose to hire an external VAT consultant or may decide to train the finance guys in your firm. And if you choose to train and educate your IT and finance department employees, it would sure be a great step to take but would have its own disadvantages. Firstly, training them is going to be a time-taking task. Plus, there will be obvious expenses involved in training the employees. Also, as newly trained and inexperienced, they might still make blunders.

On the other hand, hiring well-informed and knowledgeable VAT agents in UAE will be beneficial in multiple fronts. Hiring a VAT consulting service in UAE would mean immediate availability of professional assistance. This should cost you relatively lesser than what it would otherwise cost for training your employees and monitoring as they manage their initial tasks. The best part is, there would be the least chance of errors on the part of professionals in VAT consulting firms. Additionally, they would be available to assist you with any doubt or issue you have with implementing the VAT related changes in your entity.