Companies under the VAT system in the UAE have to maintain specific accounts and bookkeeping records. These records should be impeccably maintained by companies. GCC Filings is one company that can help you maintain these records along with helping with all other accounting, auditing, VAT return filing and registration in UAE processes. There are several other services offered for companies operating in the UAE as well.
Major Accounts and Bookkeeping Records that should be Maintained under VAT
The following records should be maintained without fail:
- Records of outward supplies
- Tax invoices or alternative papers linked to inward supplies of goods and services
- Records of goods and services that have been imported
- Records of goods and services that have been exported
- Tax credit notes or alternative documents that have been issued
- Records of goods and services disposed off or used for purposes not linked to the business, showing taxes paid for these categories
- Records of goods and services bought in case of which input tax was not recovered by the entity
- Records of corrections or adjustments made for tax invoices or accounts
- Tax records showing taxes due for taxable supplies, taxes due for supplies where taxes have to be paid for reverse charges, taxes due post correction of adjustments or errors and input tax that is recoverable on inward imports or supplies
Timeframe for maintaining records and accounts
Accounts and bookkeeping records that are maintained by taxable individuals should be retained for 5 years post the end of the tax period. For instance, tax invoices for supplies on the 1st of January, 2019, will be relating to the period between January and December in 2019. Hence, the same should be retained till the 31st of December, 2024.
It should however be noted that records for capital assets such as furniture, machinery and others should be retained for a minimum period of 10 years. This will be from the end of the tax period to which they are related and records that relate to real estate should be retained for a minimum of 15 years from the end of the tax period to which they are related.
Why you need proper account keeping
Businesses should impeccably maintain proper records for accounts and bookkeeping under the VAT regime in the UAE for internal references. VAT has been introduced as a new system and this necessitates proper record keeping and details that should be suitably maintained. You should opt for professional assistance in maintaining these records in a bid to maintain proper compliance and adherence to VAT laws and guidelines.