Tag Archives: Facilities Management Services

Value Added Tax – The Impacts & Outcomes of VAT Implementations in UAE Business Sector

Earlier this month a royal decree has been passed by HH Sheikh Khalifa bin Zayed Al Nahyan – President of the UAE & Ruler of Abu Dhabi – that urges all UAE based companies to complete their VAT registration before January 1, 2018. As per this royal order, all the businesses (reaching Dh 375,000 revenue and supply) will have to keep proper records and present them in front of tax officials upon the closing of each month.

The law will be in effect from January 1, 2017 and there is about a month left in its full implementation in business sector. We, being a Facilities Management Company in Dubai, have gathered some interesting changes this law will bring in the business sector of UAE. So here are some of the expected changes this decree is instilling in the infrastructure of UAE’s business sector.

Understanding Value Added Tax Law:

According to this law, all the businesses that meet a certain revenue threshold are liable to pay tax on their revenue generated, maintain their books and keep record of every transaction. The VAT is decided to be 5% of total value of a product/service charge and all the businesses, meeting the threshold (which is Dh 375,000 or more) must register to obtain a VAT registration number. If any company misses to register before January 1, 2018, it is liable to face odd consequences in shape of heavy fines and legal actions by the Federal Tax Authority of UAE.

The UAE Government aims to generate Dh12 billion in first year through VAT implementation in the first year and is anticipating a collection of Dh20 billion 2019 i.e. second phase of VAT implementation.

Impacts of VAT Implementation:

The days are about to end when businesses used to benefit from UAE’s free zone areas scheme. The law of VAT implementation is going to change how businesses operate in the United Arab Emirates. We, being a facilities management company in Dubai, have some possible impacts that every business would see in its core operations.

  • The businesses are urged to upgrade their record keeping system and make it in line with VAT. This is essential as the previous bookkeeping systems didn’t deal with VAT up till now but if they companies want to avoid any unfavorable situation, they need to adapt with this change in policy.
  • Due to the effect of VAT implementation in United Arab Emirates, there would be a considerable impact on how businesses and service providers price their services/products. The customers would see a slight increase in prices following the VAT inclusion in the services/product price.
  • Businesses that are engaged in stocking the goods and purchasing different items could be able to demand a concession in taxes imposed by the government if they register themselves in VAT program.

Benefits for Businesses:

Where businesses are concerned about the increase in their expenses following the implementation of value added services, there are certain benefits that could be expected by this change.

  • If we compare the VAT registered companies with those that are not yet registered then majority of individuals would want to work with a registered organization. The registrations on different levels boost the confidence of end consumer on the company he/she is dealing with.
  • Regardless of the size and turnover of a company, it works within a certain jurisdiction and wouldn’t want to go against the state laws. So VAT registration saves a company from legal penalties that could cost a lot of money and time of the organization.
  • The companies – that have a valid VAT registration number – would be able to receive different compensations and benefits from the UAE government in the long run.
  • This initiative, on part of UAE government, would help business community in dealing their commercial activities with more confidence and ease once they are registered with the FTA.
  • This is a positive step has it would encourage businesses to abide by fair practices and avoid any activity that leads to violation of any state law while crafting their yearly resolution for sales and revenue generation.

The clock is ticking for those companies that are yet to obtain their VAT registration number. And these assumptions – as a facilities management company in Dubai – are yet to prove how beneficial they would be in favor of every business concern. We hope that every party benefits from this initiative by the MENA governments.

EVER WONDER WHY YOUR BUSINESS IS NOT MAKING DESIRED PROGRESS?

Running a business requires more than capital, bearing expenses and that unique idea which sets your services apart from other service providers. Today’s business infrastructure has variable demands in comparison to old times and being a Facilities Management Company in Dubai we understand how each business can cater to these rising demands to continue its operations. As a business owner have you felt the desire to progress more but the current efforts are failing to bring those results that you aim to achieve over a passage of time? You’re not alone in this quest as the majority of businesses deal with this problem in which they find the enterprise headed towards a slightly oblique direction than it initially planned. Below are some key problems that might be influencing your business progress and how you may fix the problems.

OBSTRUCTION IN WORKFLOW

As an administrator, CEO or director of an organization your objectives are to maintain a smooth flow in routine operations of a business to achieve long-term goals. You fail to achieve this target when your workplace is confronted with minor issues that put the workflow on hold due to unavailability of basic services including electricity, water supply, electronic failure or so. You need to employ a foolproof strategy, a backup to deal with such situations that create the obstruction in your workflows on a routine basis. As an alternative, you may contract with a facilities management company in Dubai that not only give you perfect plan but also arrange for these basic services that help your staff in focusing on their core objectives instead of complaining about unavailability of a certain facility.

IMPROPER FUTURE PLANNING

In a business setting, problems are bound to happen but being a business representative it is your duty to arrange for their solutions in advance. This approach helps you in dealing with any issue for which you’ve already planned and know how to deal with problems like that to prevent any distraction for the staff. Improper cleaning measurement, loopholes in security services and even problems like pest infestation may put the workflow on hold and leave you consuming your precious time in arranging for the relevant service. As an alternative approach, your FM manager (or the facilities management company in Dubai that you’ve contracted with) should forecast these issues in advance and have a backup plan to resolve them in a timely manner.

NO TIMELY SOLUTIONS

As stated above, future planning to deal with a rising solution is essential to keep your business on the right track towards success. But here’s a little problem that needs your attention before you start believing that your plan is ready. Suppose, you have forecasted all the possible problems and their solutions but there is no one who would handle matters carefully and wait for your approval or directions for taking an action. Do you think this delay is good for your business or routine operations? You need an ambassador that would act on your behalf to maintain a sound work environment for your business and facilities management companies in Dubai work exactly on that idea to keep your enterprise running in a smooth manner.

HERE’S WHY BUSINESSES NEED INTEGRATED FACILITIES MANAGEMENT SERVICES FOR RAPID GROWTH

With the passage of time the businesses today are recognizing the importance of benefiting from the services of FMs and prioritize the integrated Facilities Management Services  in their business structure. The conventional approach to manage a big organization is proving in sufficient due to enormous growth rate of every industry and continuous variation in labor laws. A business owner is not liable to pay salaries and bonuses to his employees as there are so many other aspects of a business concern that cannot be fulfilled by sole proprietor or a few partners in order to execute routine operations smoothly.

This is where integrated facilities management plays its role and empowers the business owners to keep up with current labor laws and ensure the business operations are in continuation without facing any unexpected interruptions. We’ve highlighted the key areas where integrated facilities management can help businesses grow more and reduce interruptions.

SMOOTH WORKFLOW

It’s a fact that a business premise requires different facilities to accommodate its employees and customers and it is very essential that these facilities work properly. Let alone basic facilities like electricity, water supply and air condition system, there are other aspects that matter when you expect from your employees to work and put their best. Since the needs to progress work speed are constantly changing, facilities managers work 24/7 to ensure that your staff, clients and other concerned parties find required facilities at any given time. If any service/facility is unavailable at the work premise, it may delay the workflow of your office.

BACKUP FOR EMERGENCIES

Causalities and mishaps are bound to happen where people gather on routine basis but being the business owner it is your duty to keep the premise and its occupants safe. Since it is impossible to be present at every place of your business (or where your staff is working), facilities management companies provide smart solutions to help you keep every concerned party safe. An FM can help your business in developing strategies to cope with odd situations and help you work in line with state’s policies to avoid any penalties and fines in such situations. Like all other responsible states, Dubai Municipality has made various changes to protect the employees and make sure businesses work ethically and this is where integrated facilities management services can help you in directing your business to meet all those guidelines.

BETTER BUSINESS FORECASTING

The role of integrated facilities management services is not just limited to keeping every facility available and preventing odd situation at workstations. When your business grows, you purchase new premises, hire more people and plan for more projects in future. Since the growth of staff and business expansion is on your mind, the facilities managers suggest you to employ your funds, time and premises in best manner to stay in line with state rules and reduce the risk of any unpleasant situations at new sites that you’ve chosen to initiate further future ventures. In other words, facilities managers act as your business advisors to keep on right track towards success.

Appreciating Employees Can Help You Succeed

Outdoor activities and official parties are a way to change the monotonous work routine that we all have adopted. The tight 9 to 5 schedules drains out our energy and creativity that result in lack of interest amongst staff members. We’ve arranged a year end party to appreciate our staff members and found interesting things about employee engagement. This helped us gain more customer satisfaction by allowing the employees a way to get refreshed after a long working routine.

New Side of Employees:

The party was designed in different segments that allowed us to view another side of every employee. When given a chance to participate in outdoor activities, the response was positive with 0% declined rate. Almost every employee not only participated in these outdoor activities but also showed their utmost effort to win the game. This taught us a lesson that when we allow people to contribute, they put their 100% to achieve the objective. The same should be applied in facilities management services where one should empower others instead of forcing them to do what is necessary. This way, they’ll add new ideas as well as propose new solutions to solve the issue.

Appreciating Employee Behavior:

In our routine life, we’re moved by the way people interact with us. The celebrations, the get together arranged at a corporate level is meant to bring out positive side of individuals. Such activities are focused on developing a sense of appreciating fellow workers and understanding to work with them. These activities, as shown below, are meant to teach employees the need of teamwork that is essential in the Facilities Management world.

Employee Encouragement Segments:

The second important aspect of arranging such activities is to affirm all the efforts each individual has put in their routine jobs. The certificate distribution ceremony was arranged by IFSG-Group to appreciate best employees on weekly, monthly and yearly basis. By certificate distribution, we may achieve two objectives i.e. letting the best employees know that company cares about them and secondly it would encourage others to do more and become the next employee of the month/year.

More Excited Staff Members:

As mentioned above, the party was segmented in different activities that proved very refreshing and encouraging for every employee. The smiles, the laughs and shout-outs replaced dull faces with bright and more energetic ones. It helped us realize our employees that the efforts they put on routine basis in their jobs means a lot for the company and this act is a way of sending gratitude every staff member for staying loyal with their duties.

IFSG-Group is one of the leading providers of Facilities Management Services in UAE and aims to discover new ways to contribute to society. Its primary focuses are cleaning, moving, ICT and technical industries to improve the lifestyle of Emiratis and expats alike.