Tips to survive your financial stress in business.

 With the onset of the pandemic – most businesses have had to suffer. With the loss in revenue and dwindling profits – the financial climate has mostly been out of our control. During these times, running and sustaining a business can cause you quite a bit of financial stress, and hence leading to mental stress as well. Here are a few tips that will can assist you in surviving the financial stress your business is still facing!

Effective Communication: Talking to your family and friends, accepting the reality will help you deal with the situation better. It will give you a better perspective, as well as help you solve the problem faster. It might also give you a solution, something your stressed mind is not able to come up with. So effectively communicate.

Prioritize the spends: Go through your bank statements to analyze spends. Understand the expenditure columns, see your fixed and variable expenses, and try to curb the variable ones as much as possible. This will give you a breather, especially when new money is not coming in.

Offload your debts: Now is a good time to get rid of all your debts. Check which ones have the highest interest rate and start by clearing it out. With the help of accounting firms in Dubai – you can create a plan that helps you reduce your credit card debts, and free up funds for savings and investments.

Set realistic goals: To ensure long-term stability – create a sustainable roadmap about paying off your debts, and regarding your savings. Prioritize your spends, make a realistic budget plan, and pay off your debts.

Save as much as possible: This one goes without saying. If your business is going through financial stress, take assistance from top audit firms in dubai and understand the best way to save money for your business.

In such crucial times – financial planning and consultation is extremely important for all businesses. If your business is looking for financial consultation, get in touch with TRC Pamco, one of the leading auditing and accounting firms in dubai – they offer exceptional financial advisory services.

Treatment of VAT in Free zones of UAE

 Free zones, also known as free trade zones, are designed to promote international businesses in the UAE, by providing the business owners 100% ownership of their business. However, all free zones are not VAT-free zones. A VAT free zone is called designated zones and the executive regulation prescribes the conditions in which a designated zone needs to partake.

So, what is the treatment of VAT in the free zones of UAE? Read on!

For commercial businesses: If the supply of goods is to and from the rest of the world (outside the UAE), then unless the goods are exported or used to manufacture taxable supplies (and sold to an individual located in Mainland) – VAT will not be charged. If the supply of goods is between designated zones in the UAE, and they are not altered, used, are as per GCC Common Customs Law and a monetary guarantee is provided – VAT will not be levied. If the supply of goods is to and from the UAE mainland, a 5% VAT will be applicable in both cases.

For service businesses: Services are anything apart from goods. The executive regulation specifies that the place of supply of services is to be considered in the state of UAE. So, whether the service is provided in the designated zones or Mainland – the standard rate of VAT at 5% will be charged. There is a bit of differential treatment when it comes to VAT on goods and services. Tax-free transactions are only allowed for the supply of goods within the designated zones provided the conditions are met, whereas for services - a 5% VAT will always be levied. So, when it comes to planning your tax strategy – it is best to get in touch with VAT Consultancy in Dubai to understand the impact of VAT on their business.

To understand more about VAT returns Dubai, and to help plan your tax strategy – get in touch with TRC Pamco, one of the best VAT consultants in UAE. They can assist you with your strategy and help you make the most out of your business.