KEY HIGHLIGHTS OF VAT IN UAE
- VAT to be charged on most of the items from 1.1.2018
- To begin sales on 1.1.2018 – YOU need to have a VAT number
- If you have daily sales of AED 500 – you have an Option to register
- If you have daily sales of AED 1000 – Compulsory Registration
Why should you register for VAT?
- To Claim VAT paid on PURCHASES
- To File VAT Returns regularlu To avoid Fines and Penalties
- To avoid being visited by TAX AUDITORS and checking your office
- To avoid being prosecuted or jailed.
- NON-COMPLIANCE OF VAT IS A JAILABLE OFFENCE
Documents to Register for VAT
- Trade License
- LLC Contract
- Establishment Card
- Partners Passport Copy
- Emirates ID
- Bank Account Details
- Address of the company
- Other details
Please note: If you have more than one company and you are the same partner in all the companies – you can register as TAX GROUP (subject to approval from FTA)
RECORDS TO BE MAINTAINED TO BE VAT COMPLIANT
- Maintain correct Records of:
- Maintain commercial contracts / documents
- Register for VAT
- Print / Include VAT Registration No in all Invoices and documents
- Calculate VAT payable amount correctly
- Pay VAT regularly
- File VAT Returns Regularly
- Maintain all VAT Records in your office / restaurant / business place
- Maintain all Books of Accounts and Bank statements correctly
CHANGES TO BE MADE IN THE ORGANIZATION SYSTEM
- Become VAT Aware
- Charge VAT from your customers – so tell your customers that the price of your products will increase from January 1st, 2018
- Wherever possible adopt Invoicing System in your organization. This is a very dependent tool.
- Maintain proper filing system in your office: Please note that if you are paying VAT on all your purchases – so you can claim VAT REFUND only if you maintain and prove that you have made VAT PURCHASES.
- Maintain proper Accounting records to show all transactions.
- Maintain Accurate Inventory in your company.
- Get Outsourced Reliable Service Providers to assist you in VAT implementation.