Five things you should know about accounting for VAT
You may know nothing about VAT accounting, but that doesn’t mean you can remain ignorant – if you’re a VAT payer, the more you know about VAT, the more you and your business can gain. Here are five important pieces of information about best vat consultants in Dubai.
1 – Registering and deregistering from the VAT register
How do I decide whether to register for VAT? If your annual turnover is £68,000 or more, you must register for VAT. If your annual turnover is less than £66,000, you can opt out of registration. If you are already VAT registered, a VAT adviser can advise you on the latest rules and ensure that you and your business are not in the permanent vise of HM Revenue & Customs. They will help you ensure that you and your business are not adversely affected by the tax and customs authorities.
2 – VAT regimes
Businesses registered for VAT must account for the tax when they invoice their customers or suppliers. HM Revenue and Customs has various VAT schemes that reduce the time it takes to register for VAT or allow you to charge VAT only when you actually pay. Speak to an experienced VAT adviser to find out which scheme is best for you.
3 – VAT records.
Keep accurate records of VAT payments and receipts. These records must be kept for a certain period of time and there are penalties if they are not kept correctly. By keeping accurate VAT records you can avoid overpayment of tax; consult a VAT accountant to ensure accurate VAT records.
4 – Obligation to pay VAT
Do you know how much VAT you owe? Otherwise, you may be in breach of the VAT penalty scheme A VAT adviser can help you clarify and meet your VAT obligations With a VAT adviser, you don’t need to be a VAT expert to be aware of all your VAT obligations. They can help you.
5 – VAT penalties
From 2022, a completely new system of VAT penalties will be introduced. Penalties will apply in two cases: firstly, if an insufficient return has been submitted. This occurs when a VAT return is not filed and Customs has to estimate the amount of duty. If this estimate is lower than it should be and the taxable person fails to inform the tax authorities, a penalty will be imposed.
If someone submits incorrect documentation, they will also be fined. A penalty of 30 % is charged for errors where due care has not been taken. In addition, deliberate concealment of an error is punishable by a 70 % penalty. If the error is deliberate and the concealment is proven, a penalty of 100 % will be imposed. With the help of a professional VAT advisor, you can avoid errors and costs.
To take advantage of the expertise of a VAT advisor, visit Bestaxca to find out how they can help you with your VAT return.
