Even though UAE businesses have maintained records and accounts in the past for internal references after the introduction of VAT record keeping is made mandatory. The law says that every VAT registrant must maintain accounts and records for a specific period of time so as to avoid penalties. It is required to maintain the records for a minimum of 5 years after the end of the tax period. In some cases, the FTA might ask the registrant to retain the records for a further period not exceeding 4 years.
The records that have to be maintained by a VAT registered person are:
=>Â All records of supplies and imports of goods and services
=>Â All tax invoices and alternative documents received and issued
=>Â All tax credit notes and alternative documents received and issued
=>Â Detailed records of VAT paid on goods and services that have been disposed of or used for matters not related to the business
=>Â Records of exported goods and services
=>Â Records of adjustments or corrections made to accounts or tax invoices
=>Â Taxable suppliesâ€™ output tax due
=>Â Output tax due on the taxable supplies accounted for via the reverse charge mechanism
=>Â Records of goods are services purchased for which the input tax was not deducted
=>Â Output tax due after the correction of any errors or adjustments
=>Â Input tax recoverable on supplies or imports
=>Â Input tax recoverable after the correction of any errors or adjustment
When it comes to businesses, they are asked to keep accounting records and documents relating to their business activities, which includes:
>Â Records of wages and salaries
>Â Records of fixed assets
>Â Balance sheet and profit and loss accounts
>Â Inventory records and statements at the end of any relevant tax period and all records of stock-counts related to inventory statements.
If a person owns real estate, then the required records have to be retained for a period of 15 years.
Make sure that the records are readily available in a legible format that will allow the FTA to easily check the information.
If you have any doubt about record-keeping call usÂ 04 443 1604