Since it has already been declared that VAT will soon be implemented in UAE. Its high time SME’s start revising their business models, product pricing etc and use time wisely to take necessary steps towards the introduction of the Vat to avoid unwanted complexities in future if not focused properly. Today, this article will outline some of the key areas that SMEs should focus on to become VAT ready.
1. Mandatory VAT registration
In order to be able to recover the VAT on purchases and pass on the increased cost to their customers, SME’s need to have the VAT registration done first.
2. Regular Self Awareness
It may sound irrelevant to most of you. But having up to date knowledge is a must in today’s time. This will help SME’s to prevent any sort of negative impact on business in future. Thus, SME business owners need to attend seminars to keep themselves updated with the latest VAT announcements. This will further help them to apply their understanding mostly to the circumstances of their own business so as to work out each and every impact VAT will have on it.
3. Introduction of technology
SME’s should ensure introduction of an accounting software in business operations. This will help them in effective account keeping of their records. To highlight, accounting software comes up with sales and purchase tax capabilities build in it.
4. Completion of impact assessment
SMEs will have to complete an impact assessment so as to clearly understand VAT and the commercial effects on various domains of business. This will further strengthen preparation to face VAT.
5. Training of staff
Before implementation of VAT, SMEs will have to train their staff on various aspects of VAT. This will ensure everyone is in sync.
So ideally before the time runs out, SME’s should immediately execute necessary actionable for implementation of VAT in their businesses. For this they should definitely consult VAT specialists who will assist them to undertake a VAT impact assessment thus helping them to carefully understand the implications of VAT on their businesses and what all steps should be taken to avoid it.