t is the entrepreneurs or the business firms that act as an intermediary between the tax authority and the customers who collect tax on behalf of the authority. It must ensure that the correct amount of tax is collected and remitted to the authority within the prescribed limits and must follow all the compliance. Failure to remit tax will result in penalties and fines that can be five times more than the actual tax amount to be remitted.
• Alter the control procedures and integral processes of accounting to comply with tax laws.
The firms and the start-ups must make necessary changes within the organization to stay complied with the VAT laws. The firms can adopt new accounting software which will automatically charge the VAT rate on the transaction with minimal errors. Such alterations must be made to avoid hefty fines.
• Filing the VAT return within the timeframe prescribed
The registered taxable person must ensure that they file the VAT returns on time without any delay to the authorities. They must file monthly, quarterly, and annual returns as per their annual turnover. If they fail to file so, then they may be liable to pay an amount equal to AED 1000 and it may increase if any subsequent delay is made Spancom, provide prompt assistance for filing VAT.
• Provide training to the staff regarding VAT compliance
The staff must be provided with important insights regarding the implementation of VAT on different goods and services. They must be trained regarding zero-rated, exempted supplies, etc., and the important compliance formalities which must be met.
