Important key measures to be ensured by the business or company management when doing business under VAT in UAE;
1. Proper documentation and maintenance of records
It is important for the business or company management to ensure proper document with minimum contents required for each such document, as specified by FTA. For VAT compliance all the relevant documents and records required for raising the invoices to clients on supply of goods and services, purchase invoices and related documents from suppliers with their TRN no. to claim input credit, records of export of goods and services, Tax credit note, records relating to import of goods and services, agreement with suppliers and clients etc and it is preserved at least for a period of 5 years.
2. Inventory control
Is is important to have full and correct information of all the details of inventory at the close of the year. SME Business Management Consultancy ensure that all inventory purchases are properly tracked, and all input taxes paid are recovered in the same tax period and by ensuring that purchases are made from a tax registered supplier. Inventory control will facilitate the management to have clarity of information whether the tax is incurred on the inventory at hand, its recoverability, and tax reconciliation at the time of filing return.
3. System readiness
A company or business owner must ensure tax management is to have a proper accounting system in an acconting software. The accounting system should reliable, user-friendly and one which best suits the needs of the business. Keeping records manually and with excel record is a risky and they are not as per accounting standards. So its imporatnt to have a proper accounting system with qualified accountant.
4. Tax points
A company management or business needs to see that all tax events at the time of supply of goods or provision of services are properly taken care of as per TAX/VAT law. Same as in case of procuring of goods and availing of services to ensure that taxes are properly paid or not unnecessarily paid when dealing with the registered suppliers. So that the liability of collecting VAT from the clients and payment to government can be ensured after recovering the VAT Input Credit available.
5. Timely filing of VAT return and payments
Registered Businesses and persons in the UAE need to file for their VAT Returns and payments on time. The filing of VAT return for company or business entities would depend on their turnover as decided and communicated by FTA while allotting TRN. The records are used by the FTA for auditing purposes if required in future. The procedure to file for VAT returns will be an online process in the FTA portal where one will find Return Filing option and with the use of TRN and password, one will be able to access it.