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VAT implementation: Responsibilities of business entities

All companies and business in UAE must registered for VAT under UAE VAT Law and should maintain proper records of their business transactions and ensure that all financial records are accurate and up to date. Also should register under UAE VAT if they are coming under eligibility criteria based on turnover. All UAE VAT registered business and companies may reclaim any VAT they have paid on goods or services within the country and should charge VAT on taxable goods or services they supply. All VAT registered business entities must report the amount of VAT they collected and the amount they paid to the government on a regular basis. The Tax authority will open an online portal for submitting this record on a periodic basis it is simply called VAT return. The important thing is all business should maintain correct and accurate business records for government survey to ensure that business entities adhere to the mandatory requirement demand by the UAE VAT Law.

-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.

-If VAT charged on customers are more than the amount charged by the supplier and service providers, then the excess amount collected has to be paid to the VAT authority.