Why Getting Good Accounting Support is Crucial for Expo 2020 Participants?
All eyes will be on Dubai when it hosts EXPO 2020 in October this year as it will be the first mega-event to happen after the outbreak of COVID-19 pandemic. The world is pinning its hope on the EXPO 2020 because the success of the event is likely to boost the confidence of investors. Since more than 190 countries are slated to participate in the event, a pertinent concern emerges in regards to the accounting requirements of EXPO 2020 participants.
The EXPO participants need to comply with VAT and other related obligations, which warrants the necessity of having robust accounting support. Foreign participants need not worry about competent resources as they can hire the services of best accounting firms in Dubai to look after documentation requirements. Meanwhile, let us discuss the accounting requirements and challenges the participants need to face:
Should EXPO 2020 Participants Maintain Records?
EXPO 2020 participants are required to comply with various tax and reporting requirements, which calls for the need for maintaining proper records of transactions. They will be required to file the details of their transactions and expenses with various regulatory authorities in UAE during various stages of the event. The EXPO participants may struggle to find competent resources to maintain the proper records, but availing the services of the best accounting firms in Dubai will ease the struggle.
What are the Tax Obligations of EXPO 2020 Participants?
Expo 2020 participants are bound to incur VAT on all their expenses in relations with the construction, installation, decoration and operation of the pavilions. Expenses will also be incurred on goods or services acquired or imported for business or personal use. The UAE Government has also introduced a Special VAT Refund Scheme for the EXPO 2020 participants through Cabinet Decision No. (1) of 2019.
The participants need to maintain all the relevant VAT records as per the law, and the Federal Tax Authority (FTA) may ask for any underlying documents for transactions reported by the participants as part of VAT return, VAT refund application, application for VAT registration, application for a certificate for Entitlement etc. Failing to provide the records may land the applicants in trouble in the form of penalties. VAT Consultants in Dubai can save participants from such penalties by efficiently assisting in record keeping requirements.
Accounting Support Needed to Categorise Expenses
An adept accountant’s help is needed for the participants to categorise the expenses accurately and account for them. The categorisation of expenses helps to determine the eligibility of expenses incurred in relation to the VAT refund claims made by Expo 2020 participants. The participants can make a VAT refund claim only on eligible expenses pertaining to specific categories listed in the through Cabinet Decision No. (1) of 2019. Proper accounting support provided by accounting & bookkeeping firms in Dubai will help the participants meet all the requirements.
Likely Accounting Challenges Faced by EXPO 2020 Participants
Amidst the challenges posed by the COVID-19 pandemic, Expo 2020 participants are bound to face difficulties in keeping adequate accounting records. Some of the major challenges are listed down below:
- Non-availability of Efficient Accounting Resources
- Lack of Clarity of Compliance Requirements
- Limitations in the system to account for tax obligations
- Lack of integrated processes that may weaken internal controls
Why Is It Critical to Get Support from Dubai Accounting Firms?
COVID-19 has not dampened the spirit of EXPO 2020 as the mega event is scheduled to take place on a new date with more enthusiasm. The participants need to account for VAT and related obligations in line with the FTA’s guidelines. Since non-compliance is likely to incur penalties, the participants need the expert assistance of the best accounting & bookkeeping firms in Dubai. Furthermore, the participants will be finding it tough to find the right talent and resources to make their accounting requirements flawless. In situations like these, experienced accounting companies in Dubai, such as Jitendra Chartered Accountants (JCA) come to the rescue of EXPO participants.
JCA provides robust advice on proper tax treatments and assistance in maintaining adequate records related to the transactions as specified in the law. In cases like applying for a certificate for Entitlement, VAT refund application etc., the Expo 2020 participants need to submit additional supporting documents. They are also mandated to ensure timely tax filings and proper accounting for transactions. JCA’s dedicated accounting team can make participation in Expo 2020 Dubai seamless. JCA can support the participants with all the administrative tasks to ensure full compliance with the UAE VAT laws and allow them to recover VAT costs on expenses incurred in the UAE.