Value Added Tax (VAT) is the tax levied at every level of value addition done to the product across the supply chain. It is levied at every point of sale from manufacturer till it is sold to an end consumer. This achieved by allowing tax paid on purchase known 'Input Tax Credit' or also known as 'input VAT' to be adjusted with the VAT collected on sales knows as 'Output VAT'. Ultimately, the entire tax is paid by the consumer
we have witnessed a vast expansion of businesses in the UAE. Moreover, the legal requirement to maintain proper books of account is also becoming more important in the region. As per the UAE Commercial Company Law 2015 it is mandatory to maintain proper books of account for at least five years. In the upcoming UAE VAT law also books of account are to be maintained for 5 years.
To keep pace along with the growing economy of the country, to comply with the legal requirements and to compete with the businesses, it is sometimes difficult to manage the accounting activities of their businesses within the company especially for SMEs. Hence, accounting outsourcing services could be the best option for them to choose.
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