UAE Businesses VAT Compliance Checklist

UAE Businesses VAT Compliance Checklist

VAT has already been introduced in the UAE, and companies are currently working towards making their company VAT compliant. Nevertheless, the chaos around VAT rules and compliance standards continue to exist. This checklist would help you by clarifying all a business needs to do to become VAT compliant.

VAT Checklist

Here’s a checklist for businesses to stay VAT Compliant

Understand the VAT

The UAE government has offered different resources through its website and other ways for companies to become familiar with UAE VAT and its Rules. It is important to explore all the details available on the government website. They have added blogs, and other informational stuff to get acquainted with VAT and its laws to stay compliant and understand how and what affects your company. You can even reach out to experts to get more info on this. It is also vital to find out whether this is applicable to your products or no.

  • Keep track of your Tax return period & due dates.
  • Emirate-wise reporting of sales and other productions.
  • The report separately import of services and goods announced through UAE customs.
  • Combine details as per the format of the FTA.
  • The net value of standard-rated supplies and output VAT amount must be informed after contemplating credit notes.
  • Purchases or expenses on which input VAT is restricted should not be included in Input VAT Recovery.

VAT Registration

Companies with an annual turnover of Dh 375,000 are mainly obliged to register for VAT. There is an administrative penalty of Dh 20,000 for those businesses have not yet been registered. Before it’s too late, get your businesses registered for VAT now or you can appoint a Chartered Accountant to help you in doing so.

VAT provisions in Business Contracts

Given the fact that the VAT has become compulsory for businesses in the UAE, companies should include the VAT clause in their current and new agreements. If the agreement does not hold a VAT clause, the price in question will be deemed to be inclusive of VAT.

In accordance with the VAT law in the UAE, the companies are obliged to file quarterly returns. The return and tax payment must be made within 28 days after completion of the tax period.

Training your Staff

Your business may or may not come under VAT cover, but you should maintain appropriate accounting and professional documents in accordance with the VAT regulations. Companies are required to move the tax management & record keeping from manual to digital. This establishes the requirement for an expert group of accountants. If you’ve got that already, ensure your accountants are very well-trained in the theories and norms of the VAT. It’s important they know how to account for VAT compliance and file VAT returns.

Hiring a Professional

If your company still lacks an accounting expert or team, you might need to hire an accountancy firm or accountant who can process your business accounting records and file the proper VAT returns on time.

Update IT Software and Systems

Post the introduction of VAT, businesses must look for a trustworthy VAT management software that can process various VAT related tasks, such as filing returns, producing invoices, etc. Considering upgrading their IT software & systems should be on priority to stay VAT compliant.

VAT Management and Control

A most important part of implementing VAT in your business is going to be the proper and uninterrupted management of different VAT processes. It is critical that your organization has a professional who understands VAT laws and regulations and can take care of intricacies as and when required

You should be in continuous contact with your accounting team to learn the method and status of VAT reporting. Also, keep a close eye on any changes announced by the FTA concerning VAT.

Closing Note

It is important to understand that VAT is not levied on the revenue of a business, but only on transactions. The revenue limit is used only in establishing the VAT eligibility of a business.

Furthermore, it is also essential that your company takes periodic assistance from a well-known VAT Automation company to ensure your business is compliant with the VAT rules and regulations. R7VAT can be your trusted partner in VAT Automation and is FTA approved. For any assistance write to us at or call on +971-52-830-5127

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