VAT Impact on Change in the Permitted Use of a Building, UAE

The real estate sector is one of the most prominent sectors in the UAE. The residential type of supplies is significant in this industry. However, the real estate industry also involves other mixed nature of lease and sale agreements which can be complex for VAT treatments. These supplies involve building sales or leases, and it is one of the most frequent types of transactions in the market. However, one significant issue is determining appropriate VAT treatments. Companies must have the correct VAT registration in UAE and must also be aware of its implications. If you are changing the use of the building, there will be VAT implications, and you must know about the precise treatments to manage the issue. In this article, we will look at the impact of VAT calculations for the changes in the permitted use of buildings and how organizations can manage it.  

What Factors Are Considered on Determining VAT When Selling A Building?

When determining the VAT treatment on a building for sale, the use of the building on the date of supply plays a pivotal role. The building is considered an invisible good this is why the current usage is taken into account at the moment of sale. The standard rate of tax will depend on the nature of the building. Thus, if the building is considered commercial on the date of supply, the tax will be charged per commercial rate. However, the changes will be different if the building is residential. If you are unsure about the VAT rate, you should enlist the help of a professional company that offers VAT services in the UAE. They will help you determine the tax charges and allow you to be prepared for the expense in advance.

Step To Identify A Residential Building

Residential buildings are used or meant to be used by a person as their place of residence. Thus, if someone has bought a building for residential purposes, it is considered a residential property. However, the VAT regulations exclude hotels, motels, bed and breakfasts, and hotel apartments from this criteria. Even though these places are for residential purpose, it is not necessarily used by one person. These places are used by guests, and this is why the VAT treatment of such buildings is different. Thus, if you need to determine the VAT treatment and tax charges for your property, you will need a professional company that offers its VAT services in UAE. They can assist you with the registration process along with the VAT treatment as well.

Don’t Forget About These Steps To Determine The Date Of Supply For The Sale Of A Building

The date of the sale of a building is integral during the sale process. It is the earliest date among the following. Thus, organizations must choose the earliest time to determine the date of the supply of the building.

  • The date on which the purchases received the possession of the building.
  • The date when the tax invoice is issued for the sale.
  • Date when the ownership is transferred (in most cases, it is the registration date)
  • The date when the seller receives the payment for the sale.

Whichever comes first is considered as the date of the supply for the sale of a building.

The Possible VAT Treatments On Supply Of A Building in UAE

A trusted company can help you with the process of VAT registration in the UAE, and also allow you to determine the accurate VAT treatment as well. Since the VAT treatment depends on several factors, it is better to enlist the help of a professional. A sale or the lease can be a standard rate, a zero rate, or maybe fully exempt depending on the nature of its use and date of supply. Thus, it is integral to consider both of these factors to understand the impact of VAT. The residential buildings are zero-rated on their first supply within three years of construction. Afterward, the lease or sale of the building will be exempted from VAT. In the case of a commercial property, the building will be taxable at a standard rate of 5% on both lease and sale.

Final Words

VAT is mandatory on all building supplies. Thus, determining the correct impact allows you to calculate the correct tax charges and file taxes on time. Several trusted accounting companies offer their services that will assist you with VAT treatment and calculation. HALSCA is among the top companies that provide trusted VAT services in the UAE. Take a look at their services, or get in touch with their expert team by contacting them at

Tips To Avoid Internal Audit Mistakes In Dubai, UAE

Accounting firm in Dubai

Finances are the fuel of every business, and even the most minute errors can cause massive losses. That is where internal audits come to the rescue. By auditing your books in the house, you can resolve errors and strengthen the internal controls of the company as well. However, an internal audit is only beneficial when the process completes accurately. If you do not have the time and resources to perform this process, you should enlist the help of a partner who can help you with an internal audit in Dubai.

Several firms offer their services to business owners and help them get their accounts in shape before the external audit. However, if you have decided to conduct the internal audit yourself, you should ensure the highest accuracy and precision. To help you with the same, we have put together this list of tips that will allow you to avoid frequently made mistakes during an internal audit. By avoiding these errors, you will be able to audit your books better and get a clear and precise understanding of your firm’s finances.

Look At The Bigger Picture

It is an integral factor for an impeccable internal audit. When professional companies offer their internal audit services, they keep the organizational goals in mind. By keeping the bigger picture in mind, you will be able to steer clear of the wrong decision and ensure to take actions that align with your organizational goals. Looking beyond the surface will help to increase your productivity and measure your organization’s compliance with the standards. Thus, you will be able to check and review the performance of your employees and firms and determine if you are on the right track.

Keep Your Audit Report Short And Concise

Every company that offers an internal audit service in Dubai can tell you how massive audit reports can affect the firm. Since this report goes to the upper management for reviewing, the shorter it is, the better it will be for the superiors to assess it and express their views. The report primarily helps to highlight the weakness of the firm and suggest improvements. Thus, you should stick to this formula and refrain from adding excess information to it. A concise and clear report will introduce action plans that you can implement to strengthen the weaknesses and improve the overall functioning of the firm.

Don’t Forget About Planning

Internal audit is planning heavy. Even though planning is a crucial aspect of every critical decision, it is even more internal when auditing the firm. Thus, while conducting an internal audit in Dubai, you should plan the requirements of all essential factors like machines, workers, equipment, and funds. You should make these plans after a careful review of the production requirements. With accurate planning, you will allocate an adequate amount of funds for every factor and ensure maximum benefits from a smooth production chain. Also, with resource planning, you will be able to calculate the net worth of your inventories, assets, and other materials, allowing you a clear picture of your firm’s resources.

Audit firms in Dubai

Value Addition

The process of audit and micromanagement go hand-in-hand. You cannot talk about one without referring to the other. Thus, when working on an internal audit in Dubai, you should also invest time in developing an ideal micromanagement process. The final goal of this addition is to add value to the audit. Thus, opt for a strategy that allows you to streamline the audit process without dwelling on the small details. A firm has many elements, and auditing even the tiniest department can lead to time wastage. Thus, you should develop an efficient workflow that enables you to take all the essential factors into account without being time-consuming.

Prepare For Uncertainties

It is not just true for internal audit services but for every department and working process. You may experience some unexpected hiccups during your audit process. Hence, make sure you have a plan to help you deal with the surprise element. Having suitable instruments in place will help you minimize the waste of time and resources and ensure your audit process remains efficient as ever.

Final Words

Internal audits are integral for all firms. Accurate audits add a considerable amount of value and provide a better understanding of the firm. Getting your firm audited from trusted partners will allow you many insights beneficial for your firm. HALSCA is one of the leading firms that offer the best internal audit service in Dubai. Visit their website for their exceptional services, or get in touch with their expert team at +971 55 651 9937.

How to Manage Auditors When They Come For an Audit?

Accounting firm in Dubai

Is your firm going through an external audit for the first time? If yes, then the pressure must get overwhelming, since auditors will thoroughly check and verify all the books and information. However, preparing for the audit beforehand can help reduce your anxiety, and allow you to manage the auditors better. A reliable accounting firm in Dubai can help you prepare for the external audit and ensure you pass with flying colors. The accounting and auditing needs of an organization are unique, and they need a professional who can understand them and offer services accordingly.

If you are notified about an external audit, you should contact the best firm to internally audit your accounts and books. An audit is used to determine whether or not the accounts are accurate and complete. Thus, instead of panicking before an external audit, you should take time to get all the books audited internally and strategize about how you will manage the external auditors. If your firm’s audit is due in a few days, then look at these tips to manage the auditors and prepare your firm for an external audit.

Try to Understand The Standard

The audit report is used to determine the performance, process, and revenue of the firm. If you conduct an internal audit of the firm, you will be able to compare your books and define the correct standard of your firm. Having an internal audit is critical to understand the approach the external auditor will take. If you employ a trusted accounting and auditing firm to audit your books, you will be able to share the knowledge with external auditors and reduce the auditing time. With this knowledge, you can avoid topics that are outside the scope of an audit.

Identify Your Internal Process and Prepare Subject Matter Experts

The employees understand the internal process of the organizations better than anyone else. You can use their knowledge to ensure that the auditing process goes smoothly. You can determine which employees or team members have the best knowledge to assist the external auditors. They can make sure that the external auditors have access to someone who can guide them throughout the process, making it quicker and seamless. If you are hiring audit firms in Dubai, make sure you share the importance of the external audit beforehand to ensure they use their best skills and prioritize the assignment accordingly.

Offer Resources to Auditors

Every auditor has their daily operations to take care of, and external auditors are no exception. Since the auditors will be managing a lot of work, you should allocate as many resources as you can to help them. This will not only make the process faster but allow them to proceed with the audit seamlessly. You can allot SMEs and other organizational resources at their disposal.

Audit firms in Dubai

Assess Your Internal Procedures

Before an external audit, you should gather your employees and the firm you have hired to audit your internal controls and process. This will allow you to identify the gaps where the processes are weak or do not exist. Doing this will allow you to manage your organization’s process prior to external audits. In simple words, this will help you to review and ensure all controls that are mandated by the government are implemented, and your firm is taking corrective actions wherever essential. By assessing your internal process, you can reduce the work of an external auditor and manage them better.

Gather All the Relevant Documents at One Place

This is important, if you have an upcoming audit by an external audit, you should ensure all your documents are in one palace. This is because the auditor will be reviewing all relevant documents and books. If you have them in one place, you will reduce their workload and ensure the process is completed quickly and efficiently. You can have the physical documents in place, or get all the necessary documents in one system or drive which will be easily accessible. Start by making a list of all relevant documents and ask your team to upload all files in a single drive.

Final Words

Managing external auditorscan be a bit overwhelming. These are the professionals who will determine your organization. Thus, you should make the process easier for them. A reliable accounting firm is all you need to prepare you for an external audit. HALSCA is one of the leading accounting firms in Dubai. They can assist you with everything allowing the process to get smoother. You can visit their website to review their work or get in touch with their experts at +971 55 651 9937.

A Look at the Key Role & Responsibilities of Internal Auditors

Internal audits

Every organization requires a robust internal audit team to assess its accounts and finances. If you have decided to outsource your operations to a firm that offersinternal audits in Dubai, you must be aware of the auditor’s responsibilities. Thus, you should understand the role of an auditor before delegating your work. An internal auditor holds a certain authority in the firm and has access to all sensitive documents. Thus, it is essential to pick the right company to assist you. An internal auditor performs some daily functions, but they have a set of crucial duties. Let’s look at some of the most notable responsibilities an internal auditor is expected to perform.  

Primary Responsibilities of An Auditor

An auditor is responsible to conduct regular internal audits. These audits offer insights to the business owner and allow them to survive in the competitive market. Thus, your shortlisted company must be able to conduct regular Internal audits in Dubaiand help the company grow and expand. The duties that are included with this responsibility are:

  • Reviewing the company’s compliance with the ever-changing government policies.
  • Monitoring and analyzing the risk and controls of the organization and offering corrective solutions to strengthen the weak areas.
  • Providing insightful recommendations to business owners on the best ways to expand their operations and maximize their profits.

Major Roles of Internal Auditors

Apart from all the responsibilities discussed above, an internal auditor performs other roles as well. They verify the books and assets of the company to provide an updated valuation of the organization. They also help the companies pay optimum taxes and draft documents and procedures to ensure maximum productivity. Some of the most notable roles an auditor performs are:

Measuring Operations and Policies to Determine Best Practices

The best method to grow a business is constant tracking, and qualified auditors can do so efficiently. They can conduct regular internal audits in Dubai, and measure the success rate. This helps to give a clear insight into the actual working of the organization. Thus this information will ensure that the business owners implement the best policies and achieve quantifiable results. Regular review will also help determine the strong and weak areas, thereby allowing allocation of the firm’s resources optimally.

Internal audits in Dubai

Evaluating Risk and Offering Best Course of Action

The purpose of every internal audit in Dubaiis to assess the risk associated with every decision. With a professional internal auditor, you tend to get a better risk assessment, which will help you steer clear of the risky decision and losses that accompany it. Thus it is important to conduct a risk assessment before making any financial decision and identify the unforeseen dangers well in advance. By assessing risk, the company will also be able to create a backup plan in case the decision goes wrong.

Better Control

Since your auditor will give you a thorough review of your company’s control, you will have the option to verify and strengthen them. For instance, if your supply chain is not optimized, your auditor will point it out, and you can fix it to limit any further loss. This review will help you strengthen control over the entire organization and achieve your collective goal quicker.

Verifying Compliance with The Regulations

Every industry has certain laws and regulations imposed by the government. The companies are expected to adhere to them, or else they are penalized. If you are in an industry where the regulations are constantly updated, then you can definitely benefit from a professional Internal audit in Dubai. The qualified auditors will remain updated on the new changes and ensure your company is always compliant. Having a qualified auditor will not only prevent any unnecessary fines, but you can also get some deductions and tax reductions as and if applicable.

Offer Insights

This is the most significant benefit of every Internal audit in Dubai. Every review and audit can be beneficial for business owners. Since the auditor will be reviewing your documents and books thoroughly, they will be able to offer insights on enhancing your process or channels. These insights will be valuable during the planning and allow you to develop a strategy that will maximize your revenue.

Final Words

Internal audits can be an effective tool to grow your business. The Internal audit in Dubaiis all the more effective if they are performed by a professional auditor. HALSCA is one of the leading accounting and auditing firms in Dubai. They can assist you with everything from internal audits to managing your account. Have a look at their website to review their work, or get in touch with their experts at