Who are Liable to register for Vat ?

A business must register for VAT if their taxable supplies and imports exceed the mandatory registration threshold of AED 375,000.

Furthermore, a business may choose to register for VAT voluntarily if their supplies and imports are less than the mandatory registration threshold, but exceed the voluntary registration threshold of AED 187,500.

Similarly, a business may register voluntarily if their expenses exceed the voluntary registration threshold. This latter opportunity to register voluntarily is designed to enable start-up businesses with no turnover to register for VAT.

Who are liable to register for Excise ?

The following groups will be required to register for excise tax:

  • Producers of excise goods.
  • Importers of excise goods.
  • Stockpilers of excise goods.
  • Warehouse keepers responsible for excise goods.

How to Calculate Vat ?

Will give you one example to understand the same

Suppose, Retailer is going to sell the product of 100 AED and vat will be charge extra then he will sell the products to customer AED 105. Retailer sales is AED 100 and Vat is 5.(100*5%)

2nd case, Retailer is going to sell product to customer AED 100 In this case AED 100 includes Vat .Retailer sales is AED 95.23 and Vat AED 4.76.( 100/105*5)

Do I need Accounting Software?

Accounting software will help you to keep your bookkeeping up-to-date so you have a clear picture of your financial position. To help you understand how your business is performing, we can analyse your accounts information on a regular basis to highlight parts of the business that are performing well and identify areas for improvement.

How can a financial model help me?

At startup  of business, as consultant will understand the business in various below ways:-

Testing your plan on paper – before you commit resources to delivering it.

Forecasting – by using multiple data sources from across the business to predict financial outcomes such as production capacity and debtor days, to expected incomings and outgoings, plan future investments and predict shareholder returns.

Testing scenarios – such as how will your business finances be affected by opening or closing a site, acquiring a new business or increasing sales? This will help you choose between options.

Planning capital expenditure – your financial model will help you decide if the investment will be worthwhile for your business and when to time the investment.

Calculating the true cost of projects – by gathering data from multiple sources.