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Vat in UAE – What Needs to Be Taken Care of Business Under VAT

Certain key measures to be ensured by the management of the company when doing business under VAT in UAE. Important amongst them are –

  1. Proper documentation and maintenance of records
  2. Inventory control
  3. System readiness
  4. Tax points
  5. Timely filing of VAT return and payments

 

  1. Documentation and Record Maintenance

It is highly essential for the management of the company to ensure that proper documents with minimum contents required for each such document, as specified by FTA or in proper format are required. For instance, Tax invoice requires certain minimum contents to be specified there in at the time of raising the invoice. For VAT compliance all the relevant documents and records required for raising the invoices to customers on supply of goods or services, purchase invoices and related documents from suppliers with their TRN no. (for local purchases) to claim input credit, Tax credit note, records of export of goods and services, records relating to import of goods and services, agreement with suppliers and customers etc. need to be preserved at least for a period of 5 years.

 

  1. Keep track of your inventory for VAT

Under VAT concept the input tax you paid at the time of purchase of raw material or semi-finished or finished products can be claimed/set off / recovered against the output tax payable which ensures that no burden on the company’s cost of operations. For confirming the same, the management of the company has to ensure that all the items in the inventory whatever stages or form be, properly maintained and controlled, which otherwise also quite necessary to run the company’s operations successfully. Then the question arose – what is the status of the inventory on hand (closing stock as on 31-12-2017 or opening stock as on 01-01-2018) at the effective date of commencement of VAT implementation by Federal Tax Authority (FTA) in UAE from 01-01-2018?

It may be noted that input tax which paid at the time of purchases only can be claimed/recovered against output tax payable. For items purchased before 01-01-2018, no VAT is applicable and paid, hence there is no question of recovering any tax paid at the time of procuring inventory. Whereas all purchases of inventory from 01-01-2018 for which tax has been incurred can be claimed against output tax payable to the government unless the entity is under the tax-exempt category.

For claiming the input tax credit, proper documentation and record maintenance is highly important to prove before the tax authority (FTA) at any time in the future. The FTA may request those details within next 5 years after a transaction takes place. In order to have proper clarity of details and information, it is always better for the entities to have correct details of inventory before 01-01-2018 and on or after 01-01-2018. This will facilitate the management to have clarity of information whether the tax is incurred on the inventory at hand, its recoverability, and tax reconciliation at the time of filing return.

Therefore, it is always advisable to have full and correct information of all the details of inventory at the close of the year 2018. What the management can do in this regard is to take physical stock verification of 100% of inventory items by 20th of December 2018 and adjust the variations if any in the book stock, with top management’s approval. Thereafter purchases and sales up to 31st December 2018 also be properly recorded and tracked. Once again check (on a materiality basis) and confirm the actual inventory on 31st December 2018, considering the inward and outward movements between the last physical stock date (preferably around 20th Dec 2018) and 31st Dec 2018, on which no VAT has been incurred, just before entering VAT regime.

From January 1, 2018, onwards, the management of the Company will be in a better position to ensure that all inventory purchases are properly tracked, and all input taxes paid are recovered in the same tax period, by ensuring that purchases are made from a tax registered supplier.

  1. System Readiness – Accounting system and proper accounting

One of the most important steps, management of the companies in SME sector should ensure while entering tax regime is to have a proper accounting system in an accounting software. It should be better if it is in a reliable, user-friendly and one which best suits the needs of the business. Keeping records manually (without double entry system) or excel based record maintenance will be risky and they are not as per accounting standards. The person who records the entries in an accounting system preferably should be a good accountant, with reasonably sufficient knowledge of accounting and related standard accounting practices. If the person who is going to record the transactions are not from an accounting background or not a good accountant, support from good accounting or audit firm should be ensured for proper accounting and timely filing of return for VAT compliance. Security of the accounting system also to be ensured by taking timely backup data preferably, daily.

N.B: TRN No. In order to ensure tax compliance from the effective date and to make the document flow smoothly, you are now required to provide your entity’s Tax Regn. No. (TRN) to the suppliers and need to get the TRN of your customers for raising tax invoices, at the earliest possible. If you have not applied for VAT registration, kindly apply for the same immediately and obtain the TRN at the earliest possible. You may contact your all suppliers and customers to get their VAT TRN in the compliance process. And ensure the same was correctly stated by the suppliers or service providers when they raise a tax invoice to the company. Similarly, when you raise a tax invoice to be sure that customer’s TRN is correctly stated. Regarding Tax points and timely filing of VAT Return, we can discuss later.

  1. Tax Points

While carrying out the business, most of the transactions (depends upon the nature of business) attract VAT liability. A thorough understanding of all the transactions in the business is required to identify the point of Taxation.  Management of the company again, as to their nature of the business, needs to see that all tax events at the time of supply of goods or provision of services are properly taken care of as per VAT law. Same is the case when one is procuring of goods and availing of services to ensure that taxes are properly paid or not unnecessarily paid when dealing with the registered suppliers. Then only the liability of collecting VAT from the customers and payment to Govt. can be ensured after recovering the VAT Input Credit available.

  1. Timely Filing of VAT return and payments

Registered Businesses and Individuals in the UAE have to file for their VAT Returns and payments on time. The filing of VAT return for Business entities would depend on their turnover for which it is expected to file every month (12 times a year) or every quarter (4 times a year) as decided and communicated by FTA while allotting TRN. VAT Returns are of utmost importance as it is the authentic record of tax compliance by the registered persons for discharging their liabilities in this regard. These records can be used by the FTA for auditing purposes if required in future. The procedure to file for VAT returns will be an online process in the FTA portal (www.tax.gov.ae )where one will find Return Filing option and with the use of TRN and password, one will be able to access it.

Most of the business entities are in the rush to get it registered for Value Added Tax (VAT) under Federal Tax Authority (FTA). The last date for ensuring VAT registration is fast approaching, viz, 30th Nov 2017 for businesses having turnover more than AED10 Million a year and for others it is Dec 4th, 2017. If the turnover was above AED150 Million the last date for submission of the application for registration was 31st Oct 2017. Register for VAT and get the Tax Registration Number (TRN) is a prerequisite and the initial step while going forward for VAT regime, effective from 1st January 2018 in UAE. We invite the management attention to complete the registration formalities and get the TRN at the earliest possible without waiting until the last minute. Non-compliance with registration may attract fine or penalties from the government authority.

Emirates Chartered Accountants Group provides full-fledged Tax Services in the UAE.  We have extended our TAX services across the Emirates – Dubai, Abu Dhabi, Sharjah, Fujairah, Ajman & Umm Al Quwain to SMEs, Microlevels & Corporate Groups. For VAT Registration, VAT Training,  VAT Implementation, VAT Return Filing Services please do not hesitate to contact our below representatives.

 

 

8 Golden steps to climb before going for Mobile App Development

Aren’t we going to hit 2020 in 3 years and you are still stuck with just a website? There is no doubt in the reach of a website but we cannot ignore the prominence of mobile applications. Who doesn’t like the easy access? So thinking about having one? This blog may help you in getting an idea!

1.Do you actually need it?

That is the first step! Yeah! Think about it. In case, you are already having a website and which doesn’t require a mobile App, there is no point in creating one. So this is a very important question. If you feel to getting your business easy and accessible to the public, then you should definitely go for it. Check for the possibilities of profit maximization and be specific about what you need.

2. Look around!

Keen observation skills can definitely help you in understanding the new trends in Mobile App development.  Look around for something similar and check out how they are functioning. Sometimes a little peeking can help you! Be aware of what’s coming up and hit the goal on time!

3. Target your people!

Focus on your target audience and the country you are releasing the App. They are the ones who decide the success of your App. Get into research and find out who is more interested in your field of business.  Make sure your App meets all criteria for them and it is open to accept suggestions and changes.

4. Choosing Native or Hybrid

Don’t get confused with the terms Native/ Hybrid. Native means the smartphone applications developed particularly for mobile operating system (Objective – C or Swift for iOS etc.) Hybrid means the Applications developed using HTML. So here, you need to decide which one you are opting for your App.

5. Develop a trial version

Obviously, it requires an investment from your end. Instead of bringing the full version first, come up with a base version (Minimum Viable Product) of the App. Let it go for the trial and get access by the users. It can actually save your money and you will get to know the response from people and there are many chances for you to rectify the mistakes.

6. Getting feedback

Getting valuable feedbacks after launch is very crucial and it will help you mould the App in the most effective manner. It can help you detect the bugs and correct the errors as soon as possible.

7. App Updates

Everyone loves a responsive and engaging Mobile Application. Try to inculcate more features which are interesting and easy to use. Be creative in your thoughts and try to bring in more audience. This will definitely make you stand out in the crowd and run your business successfully.

8. Checking the success rate

The final stage of a Mobile App can be that of determining key metrics. You can measure the success rate of your App ones it goes online. It will consolidate, measure and analyze the performance of the App. If it shows some mistakes, it can be rectified and made proper.

The Best Web Hosting Service of Dubai!

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Clueless about web hosting?

All websites are made up of files and there is a need of hosting service to store them so that they can be viewed online. It’s a simple process: the files are uploaded onto a server and the company that owns the server then points the web address to the files. You need not be an IT geek to understand this and we can always explain the concept to you.

Wondering about what we have?

If you are a small or medium enterprise, this service is for you! It is activity or business of providing storage space and access for websites, which include: 3 GB hosting space, Local Support,99.8 % Uptime, Managed Web and Email Hosting space, FTP Support, Windows or Linux Hosting, Plesk or Cpanel Control panel, Customized Web Space, Customized Email Space, BEmail Control Panel,POP3 Support, Email Auto Responder , IMAP Support, Hosting Control Panel ASP or PHP Scripting Support, MS Access & MSSQL or MySQL Database Support etc.

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It can be done immediately, and you can get your website online right away. In some cases, it might take a few days for the domain to fully register and point to your hosting package. This is perfectly normal and happens across every web host -it just takes time for the servers and the domains to sync up.

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What can help you in standing out in the travels industry?

Travel sector is one of the fast growing and influential industries of all time. Getting a firm hold and remaining unique takes time and hard work. In the present era of internet, there can be many awesome ways travels website design, travels digital marketing ,travels CRM, etc .. to dominate the competition in the travels industry! Let’s look into it:

  1. E commerce website

Owning an E commerce website is the first and foremost step in leaping forward in the travel/ domestic industry. Having a dynamic and simple website can definitely gift you more traffic and reach. Make sure the wordings in your site is positive, catchy and meaningful.  When you are trying to establish an e-commerce website on travel industry, make sure that:

  • The contact details of hotels/ resorts are valid and reachable
  • Give the exact locations
  • Make sure about the offers available and are valid
  • Give full information on the visit, locations and places of interest

Having sufficient content which can make the audience look at it for a while is very important. Keep in mind to have authentic and proper content. One more thing is to have accounts in social media and a connection link from the site. Inculcate the possibility of instant response through a live chat facility on the site. Everyone relies on a consistent design and do make sure yours is one. There should be a proper system maintained to track the visitors and their booking (online booking option should be enabled).

Giving a chance of starting a Mobile App for your site will also help in dominating the industry with such fast access by the customers. Recent studies shows that almost 85% of the international travelers opt for a mobile App than a website. Due to the increased advent of smart phones, all sites are rebuilding themselves to have an App of their own.

  1. SEO the star!

Search Engine Optimization can make your website active and visible in searches. It can give you an extensive opportunity of branding yourself in a more effective manner with your own content. It makes you famous in social media as well. Who doesn’t like an error free site? Social media like Facebook has great potential in taking you to the top level. It helps you connect with your clients and answer queries instantly. You need to make sure you are on the right social media to track your target audience.

  1. SEM

Search Engine marketing has tremendous reach beyond your imagination. The services or facilities under SEM can be very beneficial such as:

  • Paid listing
  • Paid search advertising
  • Pay per click
  • Cost per click
  • Cost per thousand impressions

Google Ad words can definitely make a difference in the outlook of your travel business.

  1. SMM

Social media marketing is the new term of effective and organized marketing. It can help you become famous in very short span of time. Facebook ad campaigns of AED 20 can give you at least 8 to 12 enquiries daily. You can encourage your customers daily by posting images, descriptions and offers related to your business. Focus on the type of audience you need, area and language. According to the selections changes can be made and effective ads can be created.

There are other Social media Apps such as Twitter, Instagram, and LinkedIn etc. You just need to be tricky with the words and up to date on posting, rest is history!

All these are your 5 gems of shining brighter in travel industry. Get a chance to build your own empire by adopting the new trend!

  1. CRM

Customer Management System makes you run the business properly. Wondering what it is? It is the easiest method to keep track on your customers and update the information instantly. It can help you in keeping:

  • A proper customer database
  • Can give access to various users by giving unique password
  • Constant track on the customers via chats or e-mail
  • There can be information archives
  • It gives an easy analysis of data
  • Easy appointment fixing, contacting people as per schedule and updating information

Give a surprise to your customers by providing relevant and interesting information every time and maintain the loyalty always which brings them back to you for travel booking.

So what are you waiting for?

SPEED IT UP!

Do you have a website? Have you checked the loading time of it? A slow website reduces the page views and conversions. A Recent study shows that 47% of the population expects the web page to load in seconds and 40% of people leaves the page if they find it slower. Aren’t you bit concerned now? Don’t worry! We can give you tips to improve the speed of your site.

Try reducing HTTP requests!

Referring to Yahoo, 80% of a Web page’s load time is spent downloading the different pieces-parts of the page: images, style sheets, scripts, flash, etc. An HTTP request is made for each one of these elements, so the more on-page components, the longer it takes for the page to render. To be frank, it is very annoying and sometimes most of the displays won’t be accessible.

Some suggestions to solve this issue:

  • Make sure the number of elements on your page is less.
  • Make use of CSS instead of images whenever and wherever possible.
  • You can try to combine multiple style sheets into one.
  • Cut short the writings and put them in the footer.
  • Always remember to make it simple and easily understandable.

Cut short the response time

Check your site’s speed in Yslow or Google Page speed tools. It will give you an idea of how fast or slow your site is. Take a serious look into that and do the needful.

Not make it bulky

High-quality contents are often 100kb or more. Obviously, they’re very bulky and slow to download. The best way to speed their load time is to zip them—a technique called compression. It decreases the bandwidth of your pages, thereby reducing HTTP response. Gzip tool is apt for this.

Enable browser cache in your site

Whenever you visit a website, the elements on the page you visit are stored on your hard drive in a cache, so the next time you visit the site, your browser can load the page without having to send another HTTP request to the server. It helps in reducing the time taken for searches by the visitor.

Go for minimalism

We know that WYSIWYG resources make it easy to build a Web page, but they may create messy code—and that can slow your website considerably. Every unnecessary piece of code adds to the size of the page, it is always to keep the page less complicated.

Wise use of images

Give your focus to size, format and the src attribute of images. Make it small, try to use the JPEG or PNG format and make sure you use the GIF’ which are small in. At last get the codes right! Isn’t it simple? Next time try to give attention to these concepts.

Reduce the use of plugins

Too many plugins can definitely reduce the speed of your site and can create a bad impact on viewership. Try selectively disabling plugins, then measure the server performance. This way you can identify any plugins that harm your site speed.

These are some of the tips to get rid of a slow

ENGINEERING? NOPE! SOCIAL ENGINEERING!

Haven’t you just checked your Facebook? Yeah! And Instagram? The answer will be yes! We are addicted to the new trends of getting socialized and nobody can be blamed for that. Have you ever thought of giving your vital information before signing up for those sites?

We are all living in the internet era of socializing and may not be aware of the term ‘social engineering’. In simple words, it is the indirect manipulation to collect personal and important information from people and making use of it. For online purchases and account creations, your e mail Id and password will be asked. In case we are not ready to provide, our access will be denied. Usually, we tend to give the information because none of us have the required time to sit and read the long list of terms and conditions.

There are many risk factors involved in social engineering that people can easily hijack your information and make use of it. One of the major ways to utilizing the information is via E mails. We may just click on the attached documents and download it. It may contain the virus to take over the entire information on your phone or personal computer. In order to give it back, you may need to pay the required amount demanded by the hacker.

Another method to collect the information is by making prank calls by which the person, on the other hand, asks for the PIN number and other details just by mentioning your name. Your phone number and e mail Id can be accessed by any person from telephone directories or elsewhere. The tricky part is that when they speak so convincing, we will just pass on the information which will end up in losing your money.

Online contests, messages as ‘you win one million’, sign in to get a free laptop etc. are all fake information and we need to be very careful in clicking such links and downloads. The best method is to have difficult passwords and change it for various accounts. In case you are dealing with online e payments, make sure it is genuine and do not share the information with anyone. None of the banks will call up and ask for the PIN from its customers because it belongs to them only. In case you get the calls as threatening, do not hesitate to call the police and ask for help.

Give a bit of attention to the things you do in daily life and avoid the risk factors of getting manipulated by a stranger! Be smart and act smart!

KOTLIN GETS QUOTED!

The brand new news for Mobile App developers is the launch of ‘Kotlin’! Wondering what it is? Kotlin is the official programming language for Android development. It is built by Jet Brains, the company behind tools like IntelliJ. It runs on the JVM (Java Virtual Machine) and it’s already possible to use Kotlin and many other JVM languages for Android development. What makes Kotlin special? Yes! There is an explanation for that as well. Kotlin is expressive, concise, extensible, powerful and interesting to read and write. It’s amazing features helps in making Android Apps healthy and performing by default.

Apart from that, Kotlin works side by side with Java and C++ on Android. As an added advantage you can keep your existing code and continue to use the various Android libraries and incrementally add Kotlin code to your projects. It is not a replacement for existing Java and C++ but only an additional language. Kotlin plugin can be downloaded for the Android studio. You can call into the Java language from Kotlin, and you can call into Kotlin from the Java language. In short it is a two-way process.

As per Google, Kotlin is an open sourced project under the Apache 2.0 license, as a luminously designed, mature language that can make Android development faster and with more fun. Kotlin tools will be encompassed with Android studio 3.0 by default, and Jet Brains and Google are assuring to support the language going onward. Kotlin as a language has a lot of similarities to Java in structure its object oriented and statistically typed and designed for similar problems Java solves. As referred as a clean slate, Kotlin adds a lot of nice features such as a much cleaner syntax, ideas from functional programming and other enhancements over Java. The news has received wide acceptance from the audience so far and everyone is waiting to try it out.

YouTube: Your best companion for promotions!

Do you know that YouTube is the second largest search engine in the world after Google? There are billions of viewers who visit YouTube every month. It is obvious that it gives a chance to boost up your company. Video marketing is an integral part of online marketing which is gaining much prominence in the present time. If you have a strong YouTube presence, you can have an incredible impact on your brand reach. There are some of the factors that can influence YouTube ranking.

Provide the right types of videos:
Choosing the right content for the videos adds viewers and improves the reach. Make sure your content is connected to one or the other thing. For example, it can be an emotional video which expresses a self-portrayal of someone‘s life. It gives a major impression about establishing a brand. On the other hand, it can be an educational video too. It will be very easy for a person to learn something through a video than to read and find about it. If your company is about automobiles, there can be a video related to automobile engineering or engine efficiency.

Make it simple and understandable
There is no necessity for including difficult terminologies in the video content. The basic psychology of why people are opting for videos is mainly because of understanding things in a simple manner. To make it attractive, use logical tags which are trending, create a proper description for the video and try using closed captions or uploading a transcript.

Make people act through your video
There is nothing to get confused too. There can be a strong message or call for action that can be communicated through your video. For example, if it is gifting to your loved ones, there can be a beautiful video to give time to your dear ones. In a much simpler way, create something as ‘attention seeking.’

Create videos based on customer values
To do this, you need to be sure about who you are targeting to. This can be a specific community or a wide audience. Promote the video throughout your own networks to begin accumulating views.

Promotion
This is one of the prime factors which can push your brand to the top priority list of googling. Make sure that the video is connected to an official blog or to your official website.
Videos can create a break through to the market which we are focusing at. This can really help in maintaining a fixed position in the industry. There needs to be a specific YouTube channel for uploading new videos related to your establishment and make sure that the videos are not dragging or too lengthy. Whenever people are commenting on it, it is necessary to give a reply to them and answer queries properly.

INSTANT INSTAGRAM

Who doesn’t like clicking pics? At the same time all of us love appreciation, don’t we? Instagram is one of the easiest social media App to establish yourself in an effective manner. Instagram is an App which helps you in posting photographs, images and videos. The recent study shows that there are more than 150 million users in Instagram who are between the age groups of 18 to 35. It can be mentioned as a simplified version of Facebook. Here are some tips for you to strengthen your presence there.

Square it!
There are many photo editors available now and make your pics square! This attracts and gives a clean look to the images and adds more viewers. One of the advantages of squaring the images is that of reduced chances of cropping and an impression of fuller images.

Always use a short link!
If you want to make sure your uniqueness and trend, create a personalised link and connect it to the Instagram profile. If you are trying to establish a business firm, then do not make it in the name of a single person but the company.

The Hashtags#
Hashtags are the very new style setters available on the internet. Try searching for the trendy hashtags. This will automatically bring up your profile and shows up in the search results.

Channelizing the traffic
Okay! Now you must be thinking about increasing the viewers and followers in your Instagram. Here is the solution. You can ask for the e mail Id’s of your followers and personally message them. It can give a positive impact on speaking directly to the people.

Mix and match
Try adding up videos along with the images. Try to select impressive and attractive videos which can catch the attention of viewers and audience.

Connect it to the real life
Connect your story to the real life incidents and make it look more real. Don’t fill it up with too much of artificiality and pompoms which makes it look bit unbelievable.

Be creative in content writing
Make sure that your content is share worthy because it increases popularity. Be aware of the hashtags and language you use in the App as well.

Get in touch with influencers
Look up for the people who can help you to promote your profile and get in touch with you. We can try going for cross promotions which means both of you promoting each other’s products or profile. This increases credibility in the audience.

Be organized
Be prepared to host a campaign or promote an event via your profile and list up the important days coming up on the upcoming months. Prioritize things according to the type of products and business you are doing.
Still waiting? Let’s start working our marketing ideas through Instagram!

DIGITAL MARKETING: THE NEW FUNDA OF BUSINESS!

We are all evolving through the world of technologies, innovations and up gradations. Are you actually aware of the impact of digital marketing? Are you still stuck up with the traditional way of establishing yourself? Haven’t you thought about getting famous through the new media? There is only one answer to all these questions; pull up your sleeves and get in touch with the digital marketing.

The recent trend for getting deep rooted business establishment via digital marketing has influenced people in various fields. Some of the features have to be taken care before stepping into the stream of digital marketing. Some of them are:

digital marketing

Make sure it is mobile friendly

Almost 90% of the clients are using mobile phones for their daily transactions. So when we focus on promoting our site or business through the new media, it has to work with ease in mobile phones and tablets. This increases the site traffic and people gets to know about you more.

Make it organic

No! Not that organic food! It is about bringing your site up front in web searches by optimizing it. This helps the search engines to find your business firm or website easily and can connect to the user who checks for related items. SEO and SMM will definitely increase the website visibility.

Let’s market the content!

It is one the most effective factors in digital marketing. Getting linked with a blog can provide the visitors with fresh and relevant information. This can actually encourage the visitor and indirectly influence them to visit our site.

Make it social

Social Media Marketing is one of the hit lists of new media marketing. It makes sure your branding among your competitors. It shares the updated information about your company and distributes the products and services in an easier manner. Facebook, Twitter, Instagram, and Linked in etc. helps you reach in top priorities if you are clever enough to grab the opportunity.

So you must have got an idea about what it is all about. Last but not the least, make sure that important ingredients are already in your hand to make the magic. Wondering what they are? It’s not that difficult!

Just make sure that your website is flexible and reliable and it has an updated blog, refreshing and proper guide lines to the visitors, building up trust and getting a steady stream of customers through regular posting in social media and YouTube, engage your viewers who are interested in your site and always give something extra, make up a cool social face for your brand to develop relationship with your clients and well-wishers, there should be a track for your viewers number and site traffic, and at last try to encourage e mail marketing to make sure you are genuine and trust worthy. That’s all and try this new trend, if you haven’t done it so far! Don’t we need to be upfront in this techie world?

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