Monday, 21 August 2017

VAT and Your Company Documents: What You Need to Know

On 1st January 2018, the UAE’s value added tax (VAT) becomes law. Many companies are confused about how to prepare for this massive change.

The most important point to understand about the VAT law is that it applies to all UAE-based businesses, even if a company qualifies for an exemption. Every company with an income of more than AED 367,000 must register for a Tax Registration Number (TRN) with the Federal Tax Authority (FTA). If a business makes less than AED 367,000 in revenue, it must still prove that it is exempt. The VAT rate will be 5%, and each company must prepare and submit tax returns for each tax period, which currently means every quarter. All submitted documents and supporting records must be in Arabic.

To properly prepare your returns (or prove your exemption), you’ll need complete and detailed accounts. That means keeping your original documents safe for at least five years because the FTA can audit any company at any time. During an audit, you must produce original documents. If you can’t, you could face strict penalties, steep fines, and possible prison time.

One of the most important things you can do for your business is to implement a complete document management and storage system. At Black Box, our offsite records management solutions offer safe, reliable, and secure storage options. To find out how Black Box can help your company prepare for VAT, contact us at hello@blackboxrm.com

No comments:

Post a Comment