Businesses in the United Arab Emirates have geared up for the Value Added Tax implementation since 1st January 2018. Ever since the law has been imposed, many small and medium-sized businesses have undergone changes in terms of infrastructure, payment of taxes, goods, and services. The most important aspect required to be reviewed by the SMEs in this context is to check and confirm the parameter for VAT readiness. Apparently, a majority of business houses is still not aware of the fact whether their trade requires international taxation assistance to advise on the aspect of VAT implementation and readiness.

Here’s a five-point checklist that can assist businesses in tracking the graph.

1. Have you modified your accounting documents?

Have you updated your sales invoice, credit notes, quotations, debit notes, purchase record documents, and purchase orders? You need to modify each of the mentioned documents with the Tax Registration Number and other essential information related to VAT.

2. Are you at par with the VAT recordkeeping requirements?

Your business is required to maintain all documents related to VAT for 5 years. You might be asked to show all original documents related to the trade any time during the 5 years. Failing to come up with the updated papers and submitting the same to the Federal Tax Authority will only cause legal hassles in the long run.

3. Have you reviewed the procedures for buying and selling?

The VAT compliances and liability may vary drastically on the basis of your business model. This is what makes it crucial for an individual to closely review the procedures for buying and selling. You need to follow up with the aspects of local sales, local purchases, Exports outside GCC, Exports in GCC, imports from and within GCC and more.

One must always take VAT implementation seriously in order to avoid the risk of penalties and other legal tussles. Now that you are aware of the three key areas determining the perfect VAT readiness parameter, take some time out to think over it and verify whether your business model is in sync with the mentioned checklist.