Are you ready for VAT in the UAE?

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Have you registered your company for VAT?

If your turnover during the last 12 months, or for the next 12 months, was/will be over 375,000 AED, you need to register as soon as possible in order to avoid personal liability and penalties, but don’t worry, we can help with that.

What do you need to do?

All sales invoices you generate from now on need to be VAT compliant, so you need to review and update your accounting systems – we can help with that.

You need to ask all your existing customers for their Tax Registration Number (TRN) as you will need to include this on your sales invoices. We are more than happy to reach out on your behalf and to create and maintain an accurate database.

You will also need to ask your suppliers for their Tax Registration Number (TRN) as you will need this to be able to claim it back on your VAT return (remember, only those registered will be able to charge VAT). We can do this at the same time as reaching out to your customers.

It would also be worthwhile to review your customer database and request trade licenses from your customers to ensure that your customer records reflect the legal name of your customers.

You’ll need to prepare your accounts and retain your VAT records. It’s important that you issue sales tax invoices within 14 days of the date of supply, as after this date a customer can legally reject your invoice. We are fully experienced in managing databases and assisting with the invoicing process, so we are perfectly positioned to help with this.

Your published prices all need to be inclusive of VAT, so you need to review any place that you have prices published and update these – again we can help with this.

You also need to capture your sales by emirate, and retain all documentation related to the supply of goods and services to other VAT implementing states. This includes: export notices, customs documents, invoices, etc.

This is enough to get started, but you’ll also need to make sure you are set up properly for the reporting and filing, ready for VAT return and payment. Get in touch with our team to find out more about how we can help you prepare.