- a) Business should register under UAE VAT if they are liable to be registered for VAT based on turnover.
- b) Registered Business should maintain proper records of their business transactions and ensure that all financial records are accurate and up to date. Also those records should available for the government scrutiny when it is called for.
- c) Registered business should charge VAT on taxable goods or services they supply.
- d) Registered business must report the amount of VAT they collected and the amount they paid to the government in a Form called “VAT Returns”.
- e) If VAT charged on customers is more than the amount charged by the supplier and service providers, then the excess amount collected has to be paid to the VAT authority. Similarly, if the amount of VAT on the purchases and service providers are more than the amount charged on customers, the refund can be claimed for the difference.
- 1. Sales register.
- 2. Purchase register.
- 3. Invoices issued or received.
- 4. Credit notes and debit note.
- 5. General ledger.
- 6. Annual accounts
- Above documents may be in Psychical or electronic mode.
Any taxable person must retain VAT invoices issued and received for a minimum of 5 years. A VAT invoice should have the following minimum details:
- 1. Unique identification number.
- 2. Name, address and registration number of selling dealer.
- 3. Name and address and TRN of the purchasing dealer.
- 4. Description, quantity and price of the goods sold.
- 5. The amount of tax charged is to be shown separately.
VAT will be charged at 0% in respect of the following main categories of supplies:
- Exports of goods and services to outside the GCC;
- International transportation, and related supplies;
- Supplies of certain sea, air and land means of transportation (such as aircrafts and ships);
- Supply of certain healthcare services and supply of relevant goods and services.
- Supply of certain education services, and supply of relevant goods and services;
- Certain investment grade precious metals (e.g. gold, silver, of 99% purity);
- Newly constructed residential properties, that are supplied for the first time within 3 years of their construction ;
- Registered business failing to register when required to do so;
- Registered business failing to submit a tax return or make a payment within the required period;
- Registered business failing keep the records required under the issued tax legislation;
- Any tax evasion and performs a deliberate act or omission with the intention of violating provision tax laws will lead to applicability of penalty.
Links for the Laws.
https://www.mof.gov.ae/En/Media/News/Pages/3092017a.aspx – Tax Procedures
In case of any clarification Contact:
Gopu Rama Naidu + 971 568778858 Gopi@kgrnaudit.com
Manjunath Murthy +971 565563049 Manjunath@kgrnaudit.com