With the coming implementation of VAT in UAE from 1 January 2018, businesses will need the support of VAT experts to successfully manage their preparation as well as on-going VAT compliance. Implementing VAT in a country like UAE where there were no other major taxes has some challenges. Since VAT is a new concept it is inventible that there is a shortage of VAT experts to cater for the needs of businesses operating in the region. Many accounting firms will claim to be experts in this field, which businesses will need to be wary about. This article will provide an insight on the things you will need to do to ensure that you have the right people to assist your business in preparing for VAT.
VAT can be a complicated law for non-VAT experts to comply with and the consequences of not preparing correctly can potentially be serious. This is because disruption cannot only affect dealings with the tax authority but also with customers, suppliers, cash flow and reputation.
Most accounting firms in the UAE specalise in audit and bookkeeping, and most will not have experience in taxes therefore is it crucial for businesses to chose the right accounting firm.
The following factors should be considered when choosing an accounting firm:
As mentioned previously, most accounting firms in the UAE provide support on auditing and bookkeeping. Although, they may well have added VAT support as a bolt on to their services they may not necessary have the relevant expertise in this field. When preparing for VAT, businesses should consider firms with proven VAT expertise and experience.
When choosing a firm, the qualifications of its directors, partners, mangers and employees should be considered. You may have junior staff from the firm assigned to your project. In particular, ensure that its employees have the relevant qualifications including the staff assigned to your business.
Although fees can vary from firm to firm, like most things, the cheapest is not necessary the best. This can equally be said of the most prestigious, instead look to strike a balance between cost and quality. This can be achieved by looking for a firm who provides a high quality of service, expertise and specialism in your industry.
Customer support is a very important factor to consider as a firms may be stretched supporting a number of clients and therefore may not be able to dedicate its resources to your business. Businesses should ensure that any SLA (service level agreements) includes response from the firm within 24 hours. Failure to do so could cause disruption to your business.
It is important to check the satisfaction level from existing clients of the firm by asking to speak to them. If the existing clients of a firm are happy with the level of service received, then it is likely that you will also be satisfied. Always spend some on this to avoid future regret.
Technology is changing the Accounting field with more and more businesses using cloud based applications to support their operational and accounting functions. Equally, Accounting firms should be up to date with all new technological developments to support clients.
A firm that you feel more comfortable with must be chosen to help smoothen your VAT implementation. The size of the firm should not always be a major factor because it is other factors such as industry experience and VAT expertise, which should be more important. A larger firm may not always be able to provide the level of customer service that your require and equally a firm with no previous VAT experience will not be relevant. Furthermore, it is likely that a smaller firm will take the needs and requirements of your business with more seriousness.
Finally, before signing up to an accounting firm, always check within your professional circle for any referral that they have had experience with. It’s also recommended to ask friends and family who may have had previous experience in using Accounting firm.
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