The Basic Requirements for VAT Refund
A company should list the sales, output-input VAT details over the month. The VAT refund will be available when the input VAT exceeds the amount of output VAT. In this case, the VAT refund can be claimed or it can be carried forward. There are some conditions to receive the refund :
The company needs to be VAT registered.
The VAT charge should be reasonable otherwise the business will not be eligible for refund.
The original invoice is needed to claim the VAT refund.
For any SMEs, VAT refund can be easy if the below-mentioned points will be followed
For SMEs (Small to Medium Enterprises), financial management and book-keeping are very important. So you need to do with proper planning. If you are confused about the VAT implications then you can take the help of Vat Consultant Dubai.
- Maintaining proper book-keeping
SMEs need to maintain the book-keeping properly. This should be done with accurate accounting. To maintain your accounts in a better way, you can take the help of various Accounting Firms In UAE. With the years of experience and expertise, they will maintain your accounts with accuracy.
To deal with VAT correctly, all staff needs proper training. The training will give your staff the knowledge about how the VAT reflects your business. So they can explain the whole thing to the customers properly.
Manage the cash flow
For paying the VAT liabilities, you should manage the cash flow. Adequate fund is very important for any business. Proper cash flow management will help you to deal with any issues. For better funding, try to keep aside some money in the other account which is not easily accessible.
Use an accounting system
Proper accounting helps to improve your business. For better accounting, there is also a solution. You can use the software which automatically generates the VAT liability. The accounting firm that you hire shall advice you accordingly for such software.