5 tips for making the most of VAT in the UAE Getting the right VAT exemptions in the UAE can bring in a lot of financial relief for your start-up. But VAT is a complicated procedure and a time-consuming too. So how do you know that you are filing for the right exemptions of VAT? Rather than making mistakes, it is better that you hire a VAT advisory who can make sure that you get to make the best out of the VAT schemes the UAE has to offer. To reduce the risk of error, we have five tips that you can use for making a wise choice to utilise every exemption of VAT in the UAE. 1. Remember to claim VAT on mile coverage If your business is a limited company, then you can get coverage for the motor expenses of your business. You can claim back VAT for the fuel element of the claims. All you need to do is find the relevant fuel rate per mile and then multiply it with the number of miles travelled. A VAT fraction of 1/6 is applied to this amount‌Read More 2. Choose the right VAT scheme for your business Choosing the appropriate VAT exemptions in the UAE can have several benefits for your business. VAT exemption schemes for Freezone and limited companies may be totally different. So hire a VAT consultant who can determine the sector of your company and select a plan for you accordingly. 3. Claim VAT back on bad debts. If there are bad debt accounts in your business, you can reclaim sales pertaining to that account under VAT exemptions in the UAE. So, maintain a record of who owes you money to avail a reclaim of VAT on bad debts. 4. Create a bank account exclusively for VAT
To avoid the consequence of not having ample funds for VAT payment, you can set up a separate bank account that you can use for the deductions on VAT in the UAE. This way you will have a proper record end of each quarter. 5. Use good software To reduce the risk of errors, invest in user-friendly accounting software. A good tool will record the invoices for VAT return, thus eliminating the risk of VAT being paid twice. Choose a tool that can calculate VAT return in the UAE for a Freezone as well as a limited establishment. As VAT can be quite complicating, you can use the above tips to utilise the benefits of the exemptions for your business. Website:https://uaevatexpert.ae/vat-return-filing.html Urls:https://medium.com/@nionica2019/5-tips-for-making-the-most-of-vat-in-the-uae-808a3f2c319f? postPublishedType=initial Address:Office No. 2415, 24th Floor, Burjuman Tower,Near Burjuman Metro station, Dubai Contact No:+971-582-2023-31 Email Id:SALES@UAEVATEXPERT.AE