To register for VAT in UAE, taxable persons have to primarily establish their taxability. Further, it is essential to keep track of the documents and records related to sales, purchases, and other transactions to avert complexities upon VAT return filing in UAE. This includes transaction dates, description of goods or services provided/received, the value of each transaction, name of the country where the goods or services were received from/ sold to, and the applicable VAT rate. It is also imperative to ensure that all financial records are up-to-date before submitting the return for filing. This encompasses, reconciling bank statements, verifying the accuracy of transactions in accounting books, and preparing profit and loss accounts.
It is essential to understand the specific requirements for VAT registration and its implications in the UAE. The Federal Tax Authority has set out comprehensive guidelines on the introduction and implementation of value-added tax, including a detailed explanation of how it works and arranging the Preparation of VAT Returns.
To ensure the staff’s readiness and to meet tax requirements, it is important to provide the staff with adequate professional training. This covers facets such as the obligations that have to be met by businesses and individuals, record-keeping requirements, invoicing rules, and the filing of returns. Providing your staff with appropriate training ensures the organization’s compliance to VAT standards.
It is advisable to seek professional advice from regulated tax experts to ensure the business’s preparedness to VAT compliance. Top tax agents can provide professional guidance and advice on managing tax obligations and also assist to identify potential cost savings.
As VAT is a transaction-based tax, it is important that your IT systems are able to manage the new taxation requirements. If you are currently using an accounting system, then it is important to check that it has been updated to include the necessary VAT functionality. Alternatively, you may need to invest in a new system that is fully capable of managing the complexities of VAT.
The Federal Tax Authority has set out a criterion that must be met before a business can register for VAT. This includes the submission of required documents, the payment of any applicable fees and the completion of a registration form. Once registered, businesses must maintain their tax records in accordance with the VAT regulation standards. To which failure to comply accrues penalties upon corporations.
It is essential to have robust management and control systems in place to ensure that your business complies with the latest VAT regulations. This includes setting up procedures for filing returns, handling refunds, reconciling accounts and dealing with disputes. Additionally, you should also review your internal processes to ensure that they are compatible with the new taxation rules. This will help to reduce the risk of errors and ensure that your organization is compliant.
Read More : Procedure for VAT refunds for taxable persons in UAE
Avail the expert services of top tax agents in the UAE
Filing a VAT return in the UAE can be a complex process for corporations. However, with the right expert advice and preparation, entities can ensure that it is done accurately and timely. Thus, it is imperative to avail the services of top tax agents in UAE to undertake VAT preparation seamlessly in compliance to the VAT regulations and standards. So, contact Farahat & Co. today and we shall be glad to assist you.
Read More : Tax Agents Can Offer Valuable Assistance