As mentioned here, the registration requirements differ depending on whether or not the person is resident in the GCC Implementing States.

A person may be resident in a country if:

1. the business is legally established in the country;
2. the business’ significant management decisions are taken, and central management functions conducted in the country; or
3. the business has a fixed place of business in the country through which it regularly or permanently conducts business and where sufficient level of human and technology resource exist to enable the supply or receipt of goods and services (e.g. a branch).

The place of residence of a supplier can have important implications for taxation purposes, particularly with regards to value-added tax (VAT). In general, the place of residence of a supplier is important because it determines which tax authority has jurisdiction over their transactions and whether they are required to register for VAT in a particular jurisdiction.

In many countries, including the European Union, the place of residence of a supplier is a key factor in determining whether they are required to register for VAT in that jurisdiction. For example, if a supplier is based in one EU country but makes sales to customers in another EU country, they may be required to register for VAT in the country where their customer is based, if they exceed certain sales thresholds. This is known as the distance selling threshold, and it varies by country.

Additionally, the place of residence of a supplier can also affect the VAT rate that applies to their transactions. In some cases, different VAT rates may apply depending on whether the supplier is based in the same jurisdiction as their customer or in a different jurisdiction. For example, in the UK, the VAT rate for digital services sold to customers in the EU is determined by the supplier’s country of residence. However, if the supplier is based outside the EU, the VAT rate is determined by the customer’s country of residence.

It is important for suppliers to understand the VAT rules that apply in the jurisdictions where they are making sales, as failure to comply with these rules can result in penalties and additional tax liabilities. In some cases, suppliers may also be required to appoint a tax representative in the jurisdiction where they are making sales, particularly if they are based outside that jurisdiction.

In conclusion, the place of residence of a supplier can have important implications for VAT purposes, particularly with regards to registration requirements and VAT rates. It is important for suppliers to understand the VAT rules that apply in the jurisdictions where they are making sales and to comply with these rules to avoid any potential tax issues.

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1. Where the Official Participant is not registered for UAE VAT, the refund applications can be made through the Bureau by submitting a special refund application to the Bureau.
2. Where the Official Participant is registered for VAT, it may reclaim VAT via its UAE VAT return.

It should be noted that the Official Participant must register for VAT if the value of their taxable supplies or imports (for commercial or non-official purposes) in the UAE exceeds, or is anticipated to exceed, the mandatory registration threshold of AED 375,000

What are the allowable categories of Goods & Services on which VAT can be claimed (for Expo 2020 participants)

Official Participants are able to reclaim VAT incurred on the import and acquisition of the following four categories of Goods and Services without the need to use them for making taxable supplies:

Key Objective

1. VAT incurred by the Official Participant on Goods and Services in direct connection with the construction, installation, alteration, decoration and dismantlement of their exhibition space;
2. VAT incurred by the Official Participant on Goods and Services relating to the actual operation of the office of the Official Participant, provided that the value of each Good or Service for which a claim is made is not less than AED 200;
3. VAT incurred on the import of Goods for personal use of the Official Participant’s Section Commissioner-General, Section Staff and the Beneficiaries.

It should be noted that in order to be eligible to reclaim VAT on expenses under categories 1 and/or 2 (above), the Official Participant must be in possession of a Certificate of Refund Entitlement issued by the Bureau.

Special TRN

In respect of imports made by Official Participants, it should be noted that they may use the special TRN (Tax Registration Number) allocated to the Bureau, in coordination with the Bureau, where the goods fall under Categories 1 and 2 (above), and they hold a Certificate of Refund Entitlement. Where the special TRN is used, no import VAT will be imposed in respect of the goods, and such goods should not be included in any refund application.

You can download full guideline here

How Lynchpin Consulting can help you?

We have a team of VAT experts who can take care of all your Expo 2020 VAT related issues. We can help in your VAT registration (if needed) and help you file the VAT returns or to claim your VAT refund for UAE’s Federal Tax Authority.

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Selling an exempt supply is like a bad thing for the business  You cannot claim your related input VAT (incurred) on such supplies.

The following supplies are exempt from VAT:

1. Financial services which are not conducted for an explicit fee, discount, commission, rebate or similar type of consideration, including life insurance and reinsurance of life insurance.
2. Residential buildings, other than the residential buildings which are specifically zero-rated.
3. Bare land
4. Local passenger

Exempt supplies refer to goods or services that are not subject to value-added tax (VAT). In many countries, including the European Union, certain types of goods and services are exempt from VAT as they are considered to be essential or have social or cultural value, and exempting them from VAT ensures they remain accessible to all.

There are several types of exempt supplies, and the specific types of exempt supplies vary by country. Some common examples of exempt supplies include healthcare services, education and training, cultural and sporting activities, financial services, and insurance services. In some cases, certain types of supplies may be partially exempt, meaning that they are subject to VAT, but at a reduced rate.

Exempt supplies are treated differently from zero-rated supplies, which are also not subject to VAT. Zero-rated supplies are taxable supplies, but the VAT rate applied is 0%. This means that VAT can be reclaimed on any input tax incurred in making those supplies. In contrast, no VAT can be reclaimed on input tax related to exempt supplies.

The treatment of exempt supplies can have important implications for businesses, particularly those that provide both exempt and taxable supplies. For example, a business that provides healthcare services, which are exempt from VAT, but also sells medical equipment, which is subject to VAT, may not be able to reclaim all of the input tax incurred on the purchase of that equipment. This can result in a higher cost for the business and may affect their pricing strategy.

In summary, exempt supplies are goods or services that are not subject to VAT. This is typically because they are considered essential or have social or cultural value. The treatment of exempt supplies can vary by country and can have important implications for businesses that provide both exempt and taxable supplies. Understanding the rules regarding exempt supplies is important for businesses to ensure they comply with the law and manage their tax obligations effectively.

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New and evolving organizations frequently lack a cash buffer to cover inadequacies because they constantly reinvest. The years with the exponential growth are also the most difficult when it comes to cash flow. Every business must have proper cash flow management skills for long-term financial success. One of the most difficult challenges for business owners is managing cash flow. Firstly, we should know what cash flow is to learn about cash flow management. This article will also teach cash flow management tips to grow your business.

What is Cash Flow?

Cash flow is the net sum of cash and cash equivalents transferred into and out of a company. Inflows are represented by cash received, while total expenditures represent outflows. The ability of a company to yield positive cash flows determines its profitability and growth for stockholders.

Profitability is not the same as cash flow. Even if a company is profitable, it may not manage to pay its bills. Similarly, just because a company meets all its financial commitments does not imply that it is profitable. A business calculates cash flow by noting how much funds are available at the start and end of a period.

What are the types of Cash Flow?

The cash flow report categorizes cash sources and uses into three distinct categories:

1- Operations Cash Flows (CFO)

Cash flow from operations (CFO), also known as operating cash flow, refers to cash flows directly engaged in the manufacturing and selling of products from ordinary operations.

2- Investment Cash Flows (CFI)

Cash flow from investing (CFI), also known as investing cash flow, reports the amount of cash earned or spent in a given period from various investment-related activities. Investments include the acquisition of speculative assets, the purchase of securities, and the outflowing of investments, including the sale of securities or assets.

3- Cash flow from financing activities (CFF)

The cash flow from financing activities (CFF) part of a business’s cash flow statement represents the net amount of money used to fund the business. Financing activities include loans, equity, and dividend transactions.

What is Cash Flow Management?

Cash flow management is the method of monitoring the money coming in and going out of your business. This allows you to forecast how much cash will be at your disposal for the company’s use in the future. It also assists you in determining how much money your company requires to cover dues, such as employees’ salaries and payments to suppliers.

Many new businesses make the mistake of focusing solely on sales. The primary issue is that many companies do not receive payment immediately after a sale. You could bill a customer for the task and not be paid for months. Meanwhile, your bills, suppliers, and employees’ salaries are due. You could quickly run into a cash flow problem if you don’t account for this problem. Cash Flow management is necessary in such cases.

Cash Flow Management Tips to Grow Your Business

Smart small-business owners prioritize managing cash flow in their operations. They also prioritize reviewing cash flow statements monthly or even weekly to manage their accounting and financial matters of the business in a better manner. You risk bankruptcy if you are not properly managing your business’s cash flow as a business owner. According to a financial study, poor cash flow management accounts for 82 percent of failed businesses.

So, is it simple enough to bring in more revenue than your company spends? Although it may appear straightforward, a positive cash flow involves much more than profit growth. Even if your business is financially beneficial, it is still vulnerable to negative cash flow. If you are looking to improve the cash flow of your business, the following are the cash flow management tips to grow your business:

1- Maintain regular Cash Flow Monitoring

The company owner and the entire company must evaluate cash flow regularly to succeed in a competitive business environment. If your company’s cash flow is poor, you’ll need to pivot to improve your business financing.

Maintaining a positive cash flow can be difficult, but it is essential. Estimate your company’s financing needs and perform a regular cash flow evaluation. It is done by tracking the amount of money coming in and going out. It is also beneficial to have the appropriate business financial tools such as ZohoBooks to monitor the cash flow.

2- Cut Expenses

Controlling your expenses is essential for cash flow management because it allows you to avoid unnecessary operations and maintenance costs for your business. Even if your sales are massive, you cannot allow your operating expenses to run out of control. Otherwise, you may encounter cash flow issues if a market crisis arises or expenditures increase exponentially.

Pay attention to repeating monthly, quarterly, or annual expenses. Can you reduce your spending on amenities, rent, or salary? Are you paying for subscriptions, services, or insurance you no longer require? Are you able to renegotiate the terms of any new debt or rents? This cash flow management tip will prove very helpful in growing your business.

3- Lease equipment to Save Capital

To remain functional, all businesses depend on equipment and capital assets. However, for some companies, leasing or renting equipment is more cost-effective than making a significant investment in buying equipment. Aside from the initial purchase price, machinery and equipment generally necessitate repairing and maintenance costs.

Investing a large amount of budget in costly equipment may not be beneficial to your business right now. Instead, leasing the equipment allows the company to be more flexible. This cash flow management tip will help your business in saving money.

4- Pay Bills using proper Strategies

Spread your payments and extend the payment period as much as possible. Don’t pay all of your company bills at once. If you cannot pay, this can deplete your funds and ruin your relationships with suppliers. Instead, go through your accounts, and organize them by preference. Spread payment dates so that the most important bills, such as rent and payroll, are paid first. We can make less significant and more flexible payments later. This cash flow management tip will prevent negative cash flow.

5- Negotiate payment terms with your vendors

Using low-cost suppliers may appear to be the best option to boost cash flow. Still, flexible payment opportunities may be more significant than low-cost pricing. Ask your vendors about their payment conditions. It might prove helpful to time your payments to coincide with your cash inflows. It is necessary that you don’t compromise the quality while saving money.

6- Quickly Collect Receivables.

Encourage prompt payment of receivables to improve your cash flow. These cash flow management tips can help you acquire receivables more quickly:

• Request some advance amount from your clients while taking order
• Clients who pay in advance should be given a discount
• Take into account using online invoices and offering online payment methods

7- Good Business Relationships

One of the most important responsibilities for any company is developing good customer and supplier relationships. You can reduce negative cash flow and help achieve consistent sales by developing and maintaining positive interactions. Customer relationship management is ultimately defined by regular communication and bringing results.

Customer relationship management is ultimately defined by regular communication and bringing results. A good relationship with customers will ensure timely payments. In contrast, a good relationship with suppliers will help obtain payables discounts. These cash flow management tips will help your business maintain positive cash flow.

8- Use of a Business Credit Card

Consider using a business credit card for regular business payments to save money. Business cards will increase monitoring and accessibility to your expenditures. This will benefit in better understanding of whether you have enough revenue, where you are spending cash, where your revenue is coming from, and where you could use it most effectively. Take advantage of any bonus programs that can help you save money, such as a certain proportion of cash back on certain purchases through your business card. This cash flow management tip will help you save money.

Benefits of Good Cash Flow Management

Cash flow management is one of the essential perimeters of running a business. Positive cash flow can ensure success in any industry. Excessive debt and even bankruptcy can result from poor cash management or a negative cash flow. The latest wave of corporate bankruptcies caused by the pandemic has demonstrated the importance of businesses maintaining adequate capital reserves. The following benefits represent the benefits of good cash flow management for the growth of your business:

• It helps to maintain a good relationship with customers and suppliers.
• It gives you more negotiating power while dealing with customers and suppliers as you are in a better financial position.
• It helps to acquire loans when you have positive cash flow.
• It helps you to seize a good investment opportunity without worrying about cash flow.
• It enables businesses to navigate through rough financial times.
• It helps you to make better plans and sound decisions to grow your business.

Why Choose Lynchpin for Cash Flow Management?

Lynchpin Consulting professionals focus on understanding our client’s needs and developing a plan for cash flow management. That will assist our clients in better completing their business financial matters. Our efficient cash flow management services in Dubai clearly show your company’s financial potential.

Our financial experts will evaluate your cash inflow and outflow to predict your company’s financial standing during a specific period. This detailed evaluation can forecast your company’s financial growth and sustainability so that you can strategize ahead of time.

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You might think that tracking financial progress of your business be a tedious process, but never fear – we are here to share the process with you in 5 detailed steps. Follow these guidelines, and your business should be well on its way to financial stability!

Step 1: Assess Where Your Money Is Going

There’s no shame in admitting that you don’t know where all your money is going. In fact, it’s one of the first steps you should take when creating a business budget.

The good news is that there are plenty of tools and resources available to help you get a handle on your finances. Start by taking a close look at your bank statements and credit card bills. Make a list of all your regular expenses, such as rent, utilities, loan payments, and insurance.

Then, track your spending for a month or two to see where else your money is going. This can be done manually with a pen and paper or using software like Zoho Books or Xero.

Once you have a better idea of where your money is going, you can start setting aside money for specific expenses each month. This will help you stay on track and make sure you’re not overspending in any one area.

Step 2: Choose Business Budgeting Methodology

There are a couple different business budgeting methodologies you can choose from. The first is the zero-based budgeting approach. This approach starts with a clean slate each month, meaning that all expenses must be justified for that particular month. This can be a very time-consuming process, but it allows you to really get a handle on where your money is going.

The second option is the cash-based budgeting approach. This approach budgets based on the cash you have on hand and tries to match your spending to what you actually have available. This can be helpful if you have sporadic income or expense patterns.

Once you’ve decided which methodology makes the most sense for your business, you can start setting up your budget.

Step 3: Set a Financial Goal

Before you can make a budget, you need to set a financial goal. What do you want your budget to achieve? Do you want to save money, payoff debt, or something else?

Your goal will determine your budget strategy. For example, if you want to save money, you’ll need to create a budget that cuts your spending. If you want to pay off debt, you’ll need to create a budget that allocates extra money towards your debt payments.

Think about what you want to achieve and then set a specific goal. Once you have a goal in mind, you can move on to creating your budget.

Different businesses have different budgeting needs. There is no one-size-fits-all approach to creating a business budget. The key is to tailor your budget to suit your specific business needs.

Here are a few tips to help you create a customized business budget:

1. Know your business’ financial baseline: Before you can start creating a budget, you need to know your business’ financial starting point. This includes understanding your current income and expenses, as well as your projected income and expenses for the upcoming period. This will give you a clear picture of where your business stands financially and will help you make more informed decisions about where to allocate your resources.

2. Set realistic goals: Once you have a good understanding of your current financial situation, you can start setting goals for the future. Think about what you want to achieve with your budget and make sure those goals are realistic and achievable. Trying to accomplish too much can lead to frustration and may cause you to give up on the budget altogether.

3. Make use of available resources: There are plenty of helpful resources available to help you create an effective business budget. Take advantage of online tools and templates, or seek out advice from an experienced accountant or financial planner.

4. Review and adjust as needed: Don’t set your budget in stone! Periodically review your progress and make necessary adjustments along the way. If something isn’t working, don’t be afraid to make changes until you find the best fit.

Step 4: Create a Monthly Budget Timeline and Break It Down into Quarterly Goals.

Creating a budget timeline is key to ensuring your business budget is on track. By breaking your budget down into quarterly goals, you can better monitor your progress and make necessary adjustments along the way.

To create a monthly budget timeline, start by estimating your income and expenses for the year. Then, divide your expenses into categories and set quarterly targets for each category. Finally, track your progress each month and make changes to your budget as needed.

By following these steps, you can create a business budget that will help you stay on track and reach your financial goals.

Step 5: Pay Yourself Monthly

The final step in creating your business budget is to pay yourself monthly. This may seem like a strange concept, but it’s actually quite simple. Every month, you’ll set aside a certain amount of money to be paid to yourself. This money can be used for anything you want, whether it’s personal expenses or investing back into your business.

The key to this step is to make sure you’re consistent. Decide on an amount that you’re comfortable with and make sure you stick to it. This will help ensure that your business budget is always balanced and that you’re never overspending.

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A digital prescription for the pharma industry

user

December 9, 2019

The new wordpress theme called Consulting WP has been lauded by critics for its presentation. The theme is made by Style Mix Themes, who have been key players in the theme industry for a long time. People were excited to see what they would come up with next; their specialty has always been designing industry specific themes. This time they have focused on the consultation industry and have hit a home run.

There are many great things within the theme which are the cause of its popularity. The biggest factor is the appearance of the theme; it disrupts theme design clichés without being unprofessional. The different possible color combinations are also being appreciated by many companies. The theme continues to rise in popularity and many other companies have expressed an interest in deploying it on their new websites. The creators of the theme are happy with the response and have vowed to create further themes exploring the same concepts

• Growth through innovation/creativity:
  Rather than be constrained by ideas for new products, services and new markets coming from just a few people, a Thinking Corporation can tap into the employees.
• Increased profits:
  The corporation will experience an increase in profits due to savings in operating costs as well as sales from new products, services and ventures.

• Higher business values:
  The link between profits and business value means that the moment a corporation creates a new sustainable level of profit, the business value is adjusted accordingly.
• Lower staff turnover:
  This, combined with the culture that must exist for innovation and creativity to flourish, means that new employees will be attracted to the organization.

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Narrow Your Focus to Prevent Overanalysis

• December 14, 2015
• Posted by: user
• Category: Business plans

No Comments

The new wordpress theme called Consulting WP has been lauded by critics for its presentation. The theme is made by Style Mix Themes, who have been key players in the theme industry for a long time. People were excited to see what they would come up with next; their specialty has always been designing industry specific themes. This time they have focused on the consultation industry and have hit a home run.

There are many great things within the theme which are the cause of its popularity. The biggest factor is the appearance of the theme; it disrupts theme design clichés without being unprofessional. The different possible color combinations are also being appreciated by many companies. The theme continues to rise in popularity and many other companies have expressed an interest in deploying it on their new websites. The creators of the theme are happy with the response and have vowed to create further themes exploring the same concepts

• Growth through innovation/creativity:
  Rather than be constrained by ideas for new products, services and new markets coming from just a few people, a Thinking Corporation can tap into the employees.
• Increased profits:
  The corporation will experience an increase in profits due to savings in operating costs as well as sales from new products, services and ventures.

• Higher business values:
  The link between profits and business value means that the moment a corporation creates a new sustainable level of profit, the business value is adjusted accordingly.
• Lower staff turnover:
  This, combined with the culture that must exist for innovation and creativity to flourish, means that new employees will be attracted to the organization.

benchmarks millenials

how can we help you?

Contact us at the Consulting WP office nearest to you or submit a business inquiry online.

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