WHY YOU SHOULD HIRE A VAT CONSULTANT?

"In this world nothing can be said to be certain, except death and taxes".Benjamin Franklin couldn't have been more right and for something so certain, it pays to be well prepared.

You might be still pondering over the feasibility of doing so. You can stop now.

The benefits of hiring a consultant for this newly appointed regime in the UAE, far outweigh the costs incurred in the process.

A tax agent will ensure tax compliance, file those complicated VAT returns and keep those hefty penalties at bay.

FTA is fast with making amends to the laws and regulations. If you're a growing business, it might be hard to catch up.A tax consultant will be up to date with all legal changes and will avoid non-compliance at all costs.

If you're on a cost cutting agenda for the business, think again.The first step of VAT registration alone if missed has a stand alone penalty of AED 20,000! Moreover, unregistered companies will be required to stop sales until they receive their Tax Registration Certificate.This is just one of the plethora of penalties in the Taxation world.For a business already cash strapped and focused on turning the business around, a figure that high should be the least of your concerns.

If your annual turnover exceeds AED 150 Million, a quarterly return will not suffice. You will need to do the entire filing process on a monthly basis and there's nothing better than letting an expert take care of it,

If the daunting cloud of penalization has already fallen on you, worry not. Tax agents will be adept at approaching the FTA and finding a way forward.With the help of one, you should be able to get a better perspective on how to get through to the FTA and avoid further payments. It must be noted here however, that a fine once charged must be paid.Hence, a reiteration of why you need to hire a tax consultant in the first place!

Lastly,since VAT is purely transaction based it would be better to deploy a system whereby you can easily produce an audit file upon questions by Tax authorities, and that system can be put in place by your Tax consultant.

For those still contemplating, better safe than sorry!

Alizeh Pasha

Associate Consultant

Mehrotra and Associates Auditing