VAT has been implemented in UAE since January 1st, 2018. After its implementation, everyone liable to get registered under the VAT rule must get registered as it is mandatory. Every registered person must file returns on time without any delay, and they must collect the VAT as per the regulations laid down by the authorities. Non-compliance with the provisions of VAT will attract huge penalties and further legal complications. Below are some tips which entrepreneurs can use to avoid huge penalties about VAT:
• VAT Registration on TIME
Every person who supplies taxable goods or services and who satisfies the eligibility criteria for registration must get themselves registered without any delay. If they fail to do so, then they will be liable for an amount equal to AED 20000 as a result of non-compliance. Also, they won’t be allowed to make any further sales until they get registered and receive the registration certificate.
• Keeping an accurate and regular book of accounts and transaction details
Every registered person who is liable to pay VAT must collect and maintain the books of account with all the information related to the transactions conducted, as this may be required while filing VAT returns and at the time of any audit process. Accurate documents will also help the firm to claim input tax without any delay. It is one of the mandatory requirements laid down by the UAE VAT law. In the event of any inspection conducted by the authorities, these documents are the only evidence that can be used to furnish the tax liability and clarify the queries of the authorities.
