Previously the UAE’s tax system was simple, and people have to face no hassle in calculating their tax and payment regarding this purpose. Since 2018 when the government has implemented the VAT, people have to pay it. Those who ignore VAT they have to bear the penalty. Most people are unaware of making vat accounting entries. Therefore, they need the Vat consultants to get assistance to pay the right amount of the tax. If you are new in the industry and this year you have to pay the Vat but don’t know how to avail of service, it’s good to hire the Vat accounting service.
For hiring the vat consultant, it is important to focus on a few things so that you can avail a complete service and get benefits from it. Few things that you should not avoid are
The Reputation Of The Agent
The vat firm to whom you are going to consultant must have a positive reputation. Many agents are working, but some are known to overcharge the clients while others delay the procedure because of incomplete knowledge of VAT rules and regulations. Therefore, it is essential to find the agent who has complete knowledge of VAT-related procedures, registration methods, allocating the Tax, entries related to vat accounts, and much more.
To confirm the reputation, you should visit the consultant’s web page to read the reviews about the agency. It will help you a lot. By reading the testimonials, you will have an idea that either the service provider is capable of fulfilling the tax requirement or not.
Try to compare services, reviews, and workings styles of the agent to decide confidently.
Vat Consultant Must Be License Holder
Although running the agency for Vat consultancy without a license is illegal, few agents are still present in UAE who are practicing without holding the certificate of practice. Be aware of them. Don’t trust everyone. You can ask for the license as it is your right to consult the right source.
So, first, get to know that either the firm holds a license or not. In case you get information that a particular agent does not have a license to practice tax law, then don’t consult him and find the one who has a license to practice the Vat tax-related matters.
It is said that a good firm is one that handles all the matters with professionalism using the proper rules and regulations defined in the law. The expert agent will professionally manage all matters. Making the tax entries is not a child play; it needs proper attention to make a tax sheet.
It is good to check that agent has a degree of law and has specialized in a particular field. It is important because if the VAT agent makes a simple mistake, you must bear a lot. Be careful in hiring the Vat consultant, making sure he has an academic degree and has good experience dealing with this matter.
It is important to find the expert to handle your case so that you get the preparation of the tax list wisely and pay the right amount according to the number of goods you sell.
Moreover, he must know the vat accounting period and the right entry of the data related to the VAT.
The accounting entries of vat are done concerning sales and the purchase. Regarding sales, it includes the trade receivable amount, including vat, sale, and vat payable amount. The Vat entries for the purchase include the purchase that is the net payment, the Vat amount that is the input tax, and the accounts payable.
The agent who knows about the entries of vat and other aspects for registration of the value-added tax is known to be a good consultant who can understand and client for all types of VAT requirements.
Experience Matters A Lot
The agent who has been practicing for the tax preparation and has learned about the Vat is more reliable than one who is new to the field. Therefore, try to spend some extra fees and find the right experienced agent who knows the Vat’s detail knowledge and handles all matters efficiently. So check out the experience of the consultant so you get the favorable services.
For any successful agency, customer support is the core part. Agent who is always ready to resolve the customer’s queries, wins the heart, and get a good rating. Perhaps, people recommend him to others to take services from that agent. Do some homework and find the agent who provides customer support and does not get irritated if the client asks additional questions about the value-added tax.
Provide Proper Guideline
The good vat agent never deceives the client and always guide wisely. Either it is a matter of registration or submission of a tax form or any other factor; it is the Vat agent’s duty to keep the client updated about status. He must provide him the date of Vat accounting periods and deadline.
It is important because the client gets time and submits the tax within the limit of the deadline. So, try to hire the sincere agent, keep you updated, and provide you status from time to time.
Last but not least thing is to check your budget. How much cost you can give to the consultant. Try to compare the fee of different Vat consultants along with their reputation. It is important to take the service cost-effectively and make the right decision.
These are a few factors that you should not ignore. Remember, VAT is a serious matter. You should consult the right agent so you can pay the exact amount. Sometimes, you get a tax statement that has listed an extra amount. For that purpose, you have to claim for reconsideration. It is frustrating as well as wastage of time. So to prevent yourself from such hassles do effort and find the right source, and get the VAT related services that you need to pay the right amount of tax.