What is the impact of VAT? What are some of the benefits of VAT implementation? We give you the answers.
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As one of the main aims of VAT introduction in UAE has been to move towards more non-oil based revenue, it is interesting to see how it will continue to shape the country’s economy in the years to come. With different sources of income coming up, the government can spend much more on providing the public with high-quality services. But have you wondered how VAT may be beneficial to the country? Take a look!
1. Increased government funds
One of the upsides to VAT is diversification of revenue base and increase in the funds of the government, which would help in creating a more stable economic condition and would have a positive effect on the businesses.
2. Better infrastructure
The revenue would gradually lead to the stabilization of the economy and the improvement of infrastructure, making it easier to do business in the UAE.
3. A rise in business efficiency
Many businesses run more efficiently with VAT compliant accounting apps or software in place, replacing outdated accounting systems. The businesses can avail complete bookkeeping from these service providers at affordable rates.
4. New opportunities
VAT implementation opens up all the opportunities for the entrepreneurs who want to start advisory firms as the complexities of VAT systems can be explained by consultants specializing in this field. Most of the businesses are busy in their activities and would require someone to help them by adapting to and understanding their business.
5. Other benefits
It’s been seen around the world that tax implementation comes with many non-financial benefits. One of them is improving the accountability of government as maintaining proper taxation records will lead to better and well-reasoned decisions. We understand that businesses are still getting adjusted to the VAT laws. One of the things you can do to reduce any VAT related stress is to seek the advice of professionals who can guide you well. Our accountants are experts at providing the right consultation to businesses and have hands-on experience in taking care of all VAT-related responsibilities. To know what you can get with McLedger online accounting, get in touch with us at firstname.lastname@example.org or call us on +971 4 342 5577