The Value Added Tax will take effect in the United Arab Emirates beginning January 1, 2018. A flat 5% tax will be levied on many consumer goods while some sectors such as education, healthcare, transportation, real estate, and oil and natural gas production are either zero-rated or exempt. But not all expenditures, even in these categories, some are exempt or zero-rated, so care should be taken to understand the new tax. In healthcare, for example, some medicines may be taxed, and procedures undertaken for cosmetic reasons are subject to the
With the massive change in technology, we have experienced marvellous growth in the accounting industry over the past few years. Businesses are facing challenges to keep up with these changes. Foreseeing these problems and solving them is important so as to stay on top of the competitive market. Here are some of the most common challenges that businesses face in accounting:
Advancement in Technology
Massive technology changes resulting from cloud technology, machine learning, and Artificial Intelligence pose the biggest challenge in the industry. The transition to modern technology is a struggle as
The cash flow statement is a very important tool for a business entity, utilized to measure the inflows of cash from operations and investments against the cash outlays. It should not be confused with an income statement. The income statement uses accrual accounting to measure income and expenses as they are incurred, not as they are paid. The income statement measures profitability, while the cash flow statement assesses an organization’s liquidity. These are often very different measures. An entity may be very profitable and still be in the unenviable position
Amidst the speculation concerning the possible increases in prices and the cost of living when the new Value Added Tax takes effect on January 1, 2018, changes in reporting practices are also a serious concern for businesses in the United Arab Emirates.
According to Gulf News, substantial penalties will be incurred by those who do not follow the registration and reporting practices mandated by the FTA.
The penalty for failure to submit a registration application, for those required by law, will be Dh 20,000. The penalty for failure to submit tax-related data,
Your HR team and your finance team might seem as though they couldn’t be further apart–but the truth is, synergy between these two departments might be one of the most important steps your business takes. By creating a great partnership between your HR department and your finance team, you can reap a number of benefits that will substantially impact the way your business operates.
HR and Finance Can Learn from Each Other
Your financial team and your HR department likely have very different goals. While HR is focused on the human
The UAE’s widely anticipated VAT law has come into effect on January 1, 2018. The tax rate is pegged at a modest 5%. Officials are hopeful that the new law will be the means of diversifying the UAE’s economy. Other GCC (Gulf Cooperation Council) countries are slated to follow suit with their own VAT laws by 2019.
Education and healthcare are zero-rated as per the new UAE VAT. The tax will allow the UAE to continue providing important government-funded public services such as medical care, sanitation services, recreational parks, law enforcement
Nothing is more important for a business than having a strong accounting department and function. Unfortunately, accounting regulations have continued to make this role more challenging. For many, a better option would be to automate the accounting function as much as possible as automation provides a number of different benefits.
One advantage of using an automated accounting system is that it will lead to a higher level of accuracy than more traditional accounting methods. Nothing is more important than having a current and accurate financial picture for your company. Having an