Value Added Tax is one of the best forms of indirect taxes for a number of reasons. First of all, it does not raise any hue and cry among entrepreneurs once implemented. In simple words, this form of tax stays hidden from buyers as it is either hidden in the price of goods and services, or calculated during the manufacturing process. In other words, tax levied on sale of goods and services is done away from the knowledge of buyers. Keep in mind that it is a form of tax which is on the value added to products and services. The added amount is deposited in government exchequer later on. A value added tax consultant in Dubai will come in handy by not letting the business feel much and he only feels very nominal and usually ignore it in broad spectrum. In every tax, the government concerned has to plan well and timely where they have to have a good and efficient staff. In this case, tax authorities do not pay for the services rendered by business and commercial organizations in this respect, hence save a lot of money and time. The maximum which a Government does is to have some staff to watch the implementation of this Tax and hence, to watch the collected revenue accordingly.
A word on audit firms
Audit firms in Dubai UAE market are becoming important because multinationals are increasing their operations in the country by the day. As UAE is emerging as a global center for business and commercial activities, implementing rules and regulations on annual basis is very important. VAT is not something unique to UAE only, rather it is followed by nearly all governments across the world. The idea is to make the business run smoothly. It acts as a watch dog on companies, local as well as multinationals with the aim being to get maximum profit within the legal limits of that country.
Helps maintain transparency
To maintain transparency and assure compliance with regulations, hiring an audit firm is the need of time that the Companies undertake an annual external audit of their Financial Records by qualified Audit Firms in Dubai, They present their financial results to the various stakeholders, without any misreporting or false statements. An annual audit by these audit firms of Dubai professionally sound and reliable, gives a lot of confidence to the Investors there. Moreover, they are of immense importance wherein management and ownership of a company are different. This is the confidence of Investors which made the business boost.