VAT- SERIES - 1

VAT Service
2017

KEY HIGHLIGHTS OF VAT IN UAE

  1. VAT to be charged on most of the items from 1.1.2018
  2. To begin sales on 1.1.2018 - YOU need to have a VAT number
  3. If you have daily sales of AED 500 – you have an Option to register
  4. If you have daily sales of AED 1000 - Compulsory Registration

Why should you register for VAT?

  1. To Claim VAT paid on PURCHASES
  2. To File VAT Returns regularlu   To avoid Fines and Penalties
  3. To avoid being visited by TAX AUDITORS and checking your office
  4. To avoid being prosecuted or jailed.
  5. NON-COMPLIANCE OF VAT IS A JAILABLE OFFENCE

Documents to Register for VAT

  1. Trade License
  2. LLC Contract
  3. Establishment Card
  4. Partners Passport Copy
  5. Emirates ID
  6. Bank Account Details
  7. Address of the company
  8. 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

  1. Maintain correct Records of:
  • PURCHASES
  • SALES
  1. Maintain commercial contracts / documents
  2. Register for VAT
  3. Print / Include VAT Registration No in all Invoices and documents
  4. Calculate VAT payable amount correctly
  5. Pay VAT regularly
  6. File VAT Returns Regularly
  7. Maintain all VAT Records in your office / restaurant / business place
  8. Maintain all Books of Accounts and Bank statements correctly

CHANGES TO BE MADE IN THE ORGANIZATION SYSTEM

  1. Become VAT Aware
  2. Charge VAT from your customers - so tell your customers that the price of your products will increase from January 1st, 2018
  3. Wherever possible adopt Invoicing System in your organization. This is a very dependent tool.
  4. 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.
  5. Maintain proper Accounting records to show all transactions.
  6. Maintain Accurate Inventory in your company.
  7. Get Outsourced Reliable Service Providers to assist you in VAT implementation.
             -Renuka G., Principal Consultant, Centurion
Consulting L.L.C., Dubai.
 Centurion Consulting is a business 
 consulting firm that assists SME’s 
 on VAT advisory, registration, filing,
inventory management, accounting and auditing. 
Author: Centurion Consulting