All businesses in the UAE will need to record their financial transactions and ensure that their financial records are accurate and up to date. Businesses that meet the minimum annual turnover requirement (as evidenced by their financial records) will be required to register for VAT. Businesses that do not think that they should be VAT registered should maintain their financial records in any event, in case we need to establish whether they should be registered.
All businesses operating in the UAE are required to make a record of their financial transactions and maintain their financial records in an accurate and up-to-date manner. Businesses which adhere to the minimum annual turnover condition (as verified by their financial records) would need to register for VAT. Businesses that do not consider registering for VAT, must maintain their financial records in any event, in case we need to establish whether they should be registered.
VAT-registered businesses generally:
- - Should levy VAT on the taxable goods or services they supply;
- - Can reclaim any VAT amount they have paid on business-related goods or services;
- - Maintain a collection of business records which will enable the government to track if they have got things right
As a VAT-registered business, it is a must for you to declare the VAT amount you have levied and the VAT amount you have deposited to the government on a regular basis. This will be considered a formal submission and the reporting will possibly be made online.
If you have levied the VAT amount more than the amount you have paid, you will be required to pay the difference amount to the government. If you have paid more VAT compared to the amount you have charged, you have the option to reclaim the difference.