vat consultancy services in Dubai may know nothing about VAT Accounting, but it doesn’t mean that you need to remain ignorant. If you’re a VAT taxpayer, the more you know about any of it, the more benefit you and your business can derive from it. Listed below are five essential things that you should know about VAT Accounting.

1 – VAT Registration and De-Registration
How will you know whether you should register or de-register for VAT? If your turnover is more than �68,000 each year, you must sign up for VAT. If your turnover for the year is under �66,000, you’re allowed to de-register. Once you have registered for VAT, that’s whenever a VAT consultant will undoubtedly be useful to you. They can advise you on the latest regulations and keep you and your business on the good side of HM Revenue and Customs.

2 – VAT Schemes
Businesses which are registered for VAT need to account for tax if they invoice customers or when their very own suppliers invoice them. HM Revenue and Customs has a number of VAT schemes that allow your organization to save lots of time or only account for VAT when they are in fact paid. To work out which scheme bests fits you, seek the qualified advice of a skilled VAT advisor.

3 – VAT Records
It really is your legal and mandatory obligation to help keep accurate VAT records regarding any tax paid or received. You should keep these records for a set period of time and you can find penalties for poorly kept records. Keeping accurate VAT records helps you to avoid paying too much tax. To find out more about keeping accurate VAT records, talk with a VAT accounting specialist.

4 – VAT Responsibilities
Are you aware what your VAT responsibilities are? If not, you could fall foul of the VAT penalty system. A VAT consultant will let you know your VAT responsibilities and help you to stick to them. You don’t have to be a VAT expert once you have a VAT adviser, they’ll keep you informed of most your responsibilities regarding Value Added Tax.

5 – VAT Penalties
As of 2009, a fresh VAT penalty system is in place. You can find two scenarios under which a penalty will apply. The first is in the case of failure to notify about an under-assessment. This occurs when a VAT Return isn’t submitted and Customs need to estimate the assessment. If this assessment is leaner than the actual figure it ought to be and the taxpayer does not inform HM Revenue and Customs, then a penalty is liable.

Second, when someone submits a document that includes an error, this will also trigger a penalty. One when reasonable care had not been taken will undoubtedly be punished with 30% penalty. An error which is deliberate however, not concealed from HM Revenue & Customs will undoubtedly be punished with a 70% penalty fine. Finally, one that is deliberate and where concealment can be proved can lead to a 100% fine. By using a professional VAT consultant, you can avoid making mistakes and paying the price for it.