The UAE is now almost on its third month since the value-added tax implementation. Businesses are keeping up with being familiar with VAT and its effects on their companies and clients or consumers. A number of VAT consultancy services have helped businesses in dealing with VAT in UAE.
Since it’s always good to be reminded of our responsibility. The below is the list of things that should be put in mind by the businessmen in order for them to in compliance with the laws.
- Proper Accounting
Indeed, an accounting software should be up and running by now in every company that is registered for VAT. The accounting systems should be check often to ensure that it’s still producing the expected results and working in its best abilities.
To ensure a proper and efficient way of accounting for VAT, the systems should be reliable and user-friendly. It’s is not at all advisable to use manual recording because there is a bigger percentage of mistakes that can happen than when a software is used. Also, the one holding this responsibility should be a good accountant that is knowledgeable with the accounting standards and practices that should be applied correctly. In the event that the person who is tasked to take care the accounting for VAT, a guidance is therefore needed. There are a number of VAT consultancy services who would take the opportunity to help in this kind of matter.
- Record Maintenance
Proper documentation of records of VAT as per the laws released by the government is essential. These documents can support and ensure you are a VAT-compliant business. As an example, the invoices should have the correct details that are specified by the Federal Tax Authority (FTA). Therefore, all relevant documents and records should be kept and maintained for at least a period of five years.
There can be a time that the FTA will ask for certain documents. This is why they should be kept from day one to ensure that you wouldn’t need to worry in the future in the even that this happens.
- VAT Return Filing on Time
As per the Tax laws in the UAE, every VAT-registered business should file for VAT return on or before the specified date by the FTA. The payments should be done as well. VAT return filing will all be online and no manual filing will be done.
With the VAT returns, the government can see that your business is in compliance with VAT because of the records that you have submitted. VAT returns serve to be the records.
It is imperative that the VAT returns are all filed on time because penalties can be incurred when it is not done so. To avoid this, businesses are encouraged to have the VAT return filing dates be marked on their calendars to have timely filing.
VAT in UAE should be imperatively taken seriously.This is why VAT consultancy services are available if help is needed for your company to be continuously compliant with the laws set by the government. For more information regarding VAT, Farhat & Co. can give you the information you need.