Things to know about VAT and accounting outsourcing

Vat stands for value added tax and it is known as tax for goods and services. It is just as other taxes like income tax which increases with the increase in income so this Value added tax increases with the increase in production of goods and services. But not all localities require vat on goods and services, some countries don’t charge vat, some exports may be exempted (duty free).

Example related to it

These taxes are taken by raw material providers to manufacturers then to the distributors and they provide these goods or services to the consumers. Like raw material provider sells raw material to manufacturer worth $100 and they take value added tax of $20. This 20 will be given to the government.

What is Applied VAT?

Value added tax is applied when your total value of exports, supplies and production is more than the mandatory registration. And if you supplies or production is less than mandatory then value added tax will not be applicable on you. If taxable supplies are below the limit of mandatory registration then you can also apply for voluntary registration. By this you can easily reclaim your vat.

You should also keep a record of value added tax that you are giving and also that you are charging customers. You charge your customers value added tax by charging vat on the goods and services you are offering them to buy. You can easily find a value added tax consultant in Dubai or in any other country of the world.

What is Accounting outsourcing:

Most people neglect their businesses while spending too much time managing their books and keeping a record of everything. They don’t understand how to do bookkeeping properly. You always try to find a professional accountant but when you go out finding one, they are either very expensive or sometimes you don’t need a full time accounting service. If you only need to know how your business is doing to stay informed about your business conditions then you need an accounting outsource.

You can even have a whole team of professional grade accountants and for bookkeeping. They don’t even manage books but they also give professional advice that can be good for your organization or business. You can find accounting outsourcing in Dubai as well.