VAT Complient Bookkeeping

VAT Complient Bookkeeping

Since January 1, 2018, VAT has been in place in the UAE. The list of books and records to be preserved by us is specified in Articles (2) and (3) of cabinet decision 36 of 2017 on the executive regulation of federal law no.(7) of 2017 on tax procedure and Article 78 of Federal decree-law no.8 of 2018 on VAT. Also, please keep in mind that the VAT we collect is government money, and we are working as the government’s sole agent to collect and pay the VAT on time.

As a result, it is critical to keep accurate books in accordance with the law so that the government can see that we have followed the law and paid all sums received on behalf of the government. All of our books, accounts, and records should be kept in accordance with VAT regulations.

Book of accounts

We must keep the following books and records in accordance with Article 2 of Cabinet Decision No. (36) Of 2017 on the Executive Regulation of Federal Law No. (7) Of 2017 on Tax Procedures.

  • Accounting books pertaining to the Business, including records of payments and receipts, purchases and sales, revenues and expenditures, and any other items as required by any Tax Law or other applicable law, such as:

    1) Balance sheet and profit and loss accounts.
    2) Records of wages and salaries.
    3) Records of fixed assets.
    4) Inventory records and statements (including quantities and values) at the end of any relevant Tax Period and all records of stock-counts related to Inventory statements.

  • Any other records that the Tax Law and its Executive Regulation may need.

In addition to the accounting records and commercial books, the Authority may request any other information necessary to confirm the Person’s Tax responsibilities, including any duty to register for tax reasons, through an audit trail.

It will take some time for accounting departments in any organisation in the UAE to adjust to the VAT regime’s implications. VAT complaint accounting will undoubtedly encourage businesses to become more knowledgeable about the various schemes that must be studied in order to properly account for VAT and handle other VAT-related matters, such as tax filing.

Accruon Consultants strives to ensure that our clients are constantly in compliance with VAT legislation. Their purpose is to ensure that each issue or worry you have about VAT is addressed and resolved, because VAT accounting is a difficult concept to grasp, and it is their job to help you understand it better.

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We will assign a dedicated and qualified team to your entity, who will assist you in ensuring statutory compliance and providing necessary management reports.