Blog

Businesses are required to do following to comply with comply with VAT Legislation

Change the Invoicing template to include necessary details required by VAT law.
Implement VAT Enabled accounting system
Establish appropriate document filing system

VAT Return

Typically VAT returns are required to be filed quarterly.

Returns due within 28 days of the tax period ending

Monthly returns may be required for large taxpayers.

VAT reporting of supplies is likely to be required by Emirate.

Tax Invoice

An invoice to comply with VAT is required to have number of details such as,
VAT Registration number of both supplier and customer.
complete address of both parties, amount of purchase,
VAT and
Total amount payable.

VAT Recovery

Determines when you are entitled to recover VAT charged by your supplies

Resource Planning

Modify Procurement process to ensure that customers/suppliers are VAT registered.

Understand the impact of customer/supplier non-compliant/Non Registered.

Communicate to suppliers/customers to raise the awareness of changes in the system

Arrange training to those charged with responsibility of collecting/paying VAT.

Ask for copy of VAT registration certificate of customers along with quote/purchase order.

Contracts with suppliers/Customers

Ensure that all contracts include the VAT clause and that VAT is transferred to customers

Review the existing long term contract and revise them to include VAT clause

Seek Expert advice – Book an appointment with  the accountant -MFS Accounting