Businesses look easy to run, but in reality, they are not because there are several financial and account related elements involve. Not everyone is pro in handling the financial related matter for the business and end up making a mistake.
If you have been paying value-added tax (VAT) for a while, then you know that it is not that straightforward. Instead, there are so many elements that can go wrong, and you have might have made few mistakes along the line.
When you are continuously making a mistake and want some professional assistance to sort things out, then lookout for the best VAT consultancy in Dubai so that you can make fewer mistakes. This article is going to share common errors which most businesses make when it comes to VAT and the way you can avoid them.
Common mistakes related to VAT and their possible solutions:
The VAT is newly introduced in UAE, and not very many businesses are fully aware of the errors which can disturb their business and its reputation. The basic process might be straightforward, but as you go into the rules and regulations, you will be able to know that there are a lot of knots within knots.
Following are some of the common mistakes people often make in VAT transactions and their solutions:
The VAT on Non-Redeemable goods:
The basic principle of the VAT is that when you have the goods which are exempted from VAT, then you cannot claim for the VAT compensation. Also, if you have bought something for personal use, then claiming VAT on those items can actually land you in trouble.
When you have registered for VAT then completely understand the business purpose and goods that are related to VAT so that you are not charging VAT on the Non-Redeemable products.
Invalid/incomplete VAT proof of purchase:
When you are submitting the invoices or proof of purchase, then you need to be careful about the completion or information you are offering. Producing anything which is invalid or does not have full information can result in complicated problems.
You need to maintain properly structured invoices with detail of each and everything so that there is transparency in the records and the integrity of the business. Do not forget to add the date and time for the invoice.
Not having a proper record for the VAT:
Often people are not organized for their business, and this will keep everything messy, resulting in missing 2-3 files related to VAT. This will not only increase the complication for VAT but also puts down the reputation of the business.
Documentation is crucial for the VAT registration and process, and you have to ensure that everything is transparent and aids in transparency. To stay away from missing elements, it is essential to update the account as you go.
Last words!
Understanding the essentials for VAT and the common mistakes which people have made in the past can actually help your business grow. If you are still confused, then you can take help from the best VAT consultancy in Dubai to make the right decision about your business.