Top 5 Reasons to Include Vat in Your Business
Every person operates business for the sake of profit but there are some secrets that can help you to increase your business profit. If I talk about VAT then I am hundred present sure 90% people will not aware from this term. VAT is same like sales tax. We can say that VAT is another term of sales tax in which everyone pays some tax on the time or purchase. I know mostly people are confusing about VAT and think what is VAT? VAT is the abbreviation of value added tax. Every country has their different rules and regulation regarding to taxes. Some countries include value added tax and some countries prefer sales tax.
You will be happy to hear the value added tax is refundable but there is a procedure to refund it. For this purpose first you need to aware from VAT. If you really want to refund your paid value added taxes then you need a company like IAXCESS UAE who will illustrate the term VAT. For value added tax refund you need to register yourself from TAX department then they will allot you a value added tax registration number. After receiving value added tax ID you will be eligible for value added tax refunding. Now I will discuss some reasons that prove that why value added tax is important for your business sand why you need to include it in your business.
Save your precious money:
In VAT you pay your precious money in sense of taxes. You can claim for your paid taxes and save your precious money but it is only possible when you are value added tax registered candidate. If you don’t claim for your taxes then these taxes will only overhead for your business. If you have option to refund your taxes then it will be wrong decision to not register yourself from value added tax and refund your taxes. If you don’t know how to register for value added tax then you can get facility of IAXCES use which is the best VAT Consultancy in UAE
Helps to generate Good-will:
VAT helps you to generate your business Good-will. People have a mind-set that the companies who are value added tax registered are more trustable companies. So this is the first benefit of value added tax that you can get from it. Everyone knows Good-will for any business is so important whether it is small level business or high level business. value added tax is different from other taxes. It is neutral so it imposed on all types of business.
Helps to promote business:
VAT is a very useful thing for that business who works on small level because after value added tax registration they will be able to refund their taxes. In small business the earnings are already very low so value added tax refunding in small business will be valuables and this refunded money helps them to promoter their business.
Claim for up-to last four years:
VAT allows you to refund your last for years value added taxes. Now imagine you had paid $15000 in last 4 years and now you are able to refund your $15000. This is the real beauty of value added tax but one thing remember you can claim for your value taxes only when you are VAT registered ad have value added tax registration number.
Increase your sales:
As we discussed above value added tax plays a vital role to create Good-will. We all know when a company has a good Good-will then their sales automatically grow. We can say that the sales of a company are directly related with their Good-will. If a company has a low good-will then it is obvious thing that their sales will be low. So in this way VAT plays a tremendous role to increase your sales.
Naila Kanwal is a technical engineer at IAXCESS UAE. IAXCESS UAE serves as the Middle East’s leading IT solutions companies. IAXCESS UAE offers multiple services like cloud solutions, VAT consultancy services, ERP solution, network security etc. all around the Middle East.