Private corporations now familiar, confident, and better informed of VAT regulations a year after implementation
Dubai, UAE — A year after the UAE rolled out the value-added tax (VAT) system, reports noted a smooth and successful implementation of the tax regime throughout 2018 with businesses strictly complying with and continuously expressing their support for the new taxation structure in the country.
“Businesses in the UAE are now familiar, confident, and better informed of the VAT system. The business community’s high compliance is critical to the policy’s success. To help in their compliance, many private corporations have sought the help of financial consultants in compiling, preparing, and filing their VAT returns. Working with VAT experts is necessary because they are certified professionals who have an in-depth knowledge of VAT and, as such, can properly assist companies in adhering to the system to avoid any issue later. We are confident that similar coordination will take place in 2019 as the country enters its second year of deploying the tax regime,” said Vikas Panchal, Business Head at Tally Solutions in the Middle East.
The UAE Government implemented a 5 percent VAT at the start of 2018 primarily to reduce its heavy reliance on oil revenues. Financial experts advocated for its implementation to strengthen the Arab state’s non-oil sectors.
Under the tax legislation, all registered businesses are mandated to register, file their tax returns, and settle their correct due taxes on time to avoid penalties for non-compliance. Reports said that the government is seen to earn AED 12 billion and AED 20 billion in revenues through VAT in 2018 and 2019, respectively. Apart from the UAE, its neighbouring country Saudi Arabia also implemented the levy in 2018, while Bahrain has already rolled the first of the planned 3 phases from January 01, 2019.
As a business solutions provider, Tally Solutions has been helping at least 50,000 businesses in the UAE and Saudi Arabia to ensure that they comply with VAT regulations. The company also helps them in managing their records and filing their returns in a timely and effective manner. Trusted by more than 1.5 million businesses globally, Tally Solutions boasts a portfolio of elite GCC clients that are now using its VAT software, the Tally.ERP 9 Release 6.5, for compliance purposes.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
