VAT Accounting in UAE
Companies must accurately maintain VAT records to record the chargeable VAT on sales & VAT paid on purchases. As per the UAE VAT laws and regulations, VAT accounting requires maintaining several records related to supplies made and supplies received, and the VAT amount charged.
Understandably, these services require dedicated time and resources. Therefore, companies should outsource VAT accounting to a reliable firm that offers dedicated VAT-related services.
N R Doshi and Partners is one such firm that has earned immense goodwill & reputation through 35+ years of accounting experience. With over 35 years of experience in the industry, NR Doshi and Partners has earned immense goodwill and reputation. Many businesses have benefitted from our VAT registration services in Dubai.
Most importantly, we are FTA-registered tax agents. Rest assured; you won’t face any compliance issues because we always stay abreast of the latest FTA laws and regulations. Apart from VAT registration, we handle other VAT aspects like VAT amount calculation, previous accounts review, error rectification, and VAT refund in Dubai.
Records to be Maintained for VAT Accounting
A taxable business must maintain many accounting records as per the VAT Laws. FTA can check these records anytime, making it mandatory for businesses to exhibit records as per the FTA standards. In case of compliance issues or errors, the FTA can penalize the organization. Further, it will also harm the reputation of the company. We assure you that we will be regularly updating all the VAT accounting documents, considering the provisions of VAT Laws.
- Outward Supplies and Services records.
- Amount of tax due on outward supplies
- Tax invoices or documents showing inward supplies and services taken by your business
- Records of imported and exported goods
- Tax credit notes
- Purchased goods and services records for which you need to recover input tax
- Records of tax invoices corrections
- Tax dues after the adjustments made
- Amount of input tax recoverable on inward supplies
If you plan to maintain all the records, consult us before going forward. We can advise you on maintaining all the records with zero hassles. However, we advise you to understand the benefits of VAT accounting services. These benefits will demonstrate how NR Doshi’s services can support your business.
Significance of VAT Accounting Records
The records should help you to identify the following to file VAT Returns:
- Local Sales
- Export Sales
- Exempted Sales
- Total Sales
- Local Purchases
- Import Purchases
- Total Purchases
Further, accounting information should also be capable enough to maintain and provide the following detail:
- Suppliers as well as Customers master data management with their TRN Number and the place of establishment
- Item master with proper mapping of the tax rate
- Tax coding of various transactions
- VAT Accounting Entries for purchase and sales transactions
- General Ledger
- Lastly, VAT related reports
The Period for Retaining the VAT Accounting Records
As per the VAT laws and regulations, businesses need to retain all the records for up to five years after the tax period ends.
However, companies must preserve the tax records related to capital assets like furniture for at least ten years after the tax period. Finally, companies must preserve real estate-related VAT accounting records for fifteen years.
Benefits of VAT Accounting in UAE
One of the significant challenges a taxpayer faces in conducting VAT accounting in the UAE is compliance. A business, therefore, may or may not be fully aware of its compliance rules of it.
When you opt for our services, we will conduct the entire process following the industry rules & regulations. Our tax agents keep abreast of the latest industry developments, including the newly introduced laws. Hence, you do not have to worry about FTA’s penalties, thereby ensuring adequate compliance & improving your company’s reputation.
As mentioned in the previous section, this service requires maintaining many records. It will help if you have dedicated resources and a team. Thanks to NR Doshi & Partners, you will not maintain an additional team. Instead, you can divert your resources to other aspects of your business that require attention.
Penalties for not maintaining proper accounting records
If your business fails to maintain accurate VAT records, the FTA may charge you a penalty of AED 10,000 for a first-time offense. Repeated offenses may attract fines of AED 50,000 or more.
Moreover, if you fail to produce the proper tax records in Arabic when requested by the FTA, you need to pay a fine of AED 20,000. However, if you fail to issue a tax invoice on supplies, FTA charges a penalty of AED 5,000.
As you can see, inaccurate accounting can cause severe financial harm to your business. Therefore, we suggest that you only hire expert VAT consultants in Dubai to perform VAT accounting and related tasks.
Why Choose N R Doshi and Partners’ VAT Accounting?
Why Choose N R Doshi and Partners’ VAT Accounting?N R Doshi and Partners are seasoned veterans in VAT accounting. Even before the introduction of VAT in the UAE, we have been a prominent financial services provider for over 35 years, to be precise. Many of our clients who opted for other services understood that we also provide Vat accounting in the UAE. Now, along with accounting, we also handle VAT number check, VAT deregistration in UAE, VAT refund in Dubai, VAT return filing for these clients.
Further, as we are FTA registered tax agents, you can be sure that we follow the established regulations & guidelines. This rigorous & methodical approach has helped us earn a valuable reputation & market credibility over all these years.
It took us thirty-five years to build such goodwill in the UAE. We assure you that we always provide our services with complete faithfulness while aiming for client satisfaction.
Our Strength
- FTA registered tax agents with a thorough knowledge of all VAT aspects. Our agents have worked with different sectors, making them aware of different process models.
- Our proprietary VAT accounting procedures are designed to minimize errors while improving accuracy. The methodology ensures that we examine all VAT accounting elements to ensure compliance with UAE’s VAT laws.
FAQs: VAT Accounting Services
Is VAT Accounting Mandatory for Every Business in Dubai?
No, VAT Accounting is only mandatory for every taxable business registered with the Federal Tax Authority (FTA) in UAE.
Which are Some Goods and Services on which 0% VAT is Charged?
Some of the common goods and services on which 0% Vat is charged are mentioned below:
- Telecom Service Exports
- Certain Transports
- International Transportation
- Education
- Healthcare
- Medicines
- Oil and Gas
- Gold, Silver, and Platinum
What Information Should be Included in a Tax Invoice?
A VAT invoice should include the following information:
- The word “Tax Invoice” must be displayed clearly & in a proper place.
- Including the Supplier’s name, address, and Tax Registration Number is necessary.
- Recipient’s name, address, and the Tax Registration Number must be included (if they are registrants)
- It must contain a unique tax invoice number used to identify the tax invoice.
- Issuance date
- Date of supply if it is different from the date of issuance of the invoice
- Adequate description of the goods or services supplied
- Chargeable price per unit, quantity supplied, applicable tax (in AED)
- Amount of discount if applicable
- Gross payable amount (in AED)
- Amount of tax payable (in AED)
- Reverse charge statement if applicable
You Focus on Your Business Growth
And Let Us Handle the VAT Accounting for You
