As Dubai Government has implemented a VAT structure in Dubai. It has become necessary for all businesses who are earning 3,75,000 AED to be registered under the UAE VAT. To become a registered business the business should fulfill some requirements. If the business succeeds in the registration process there are many things to be followed after that. One of the main things is to keep the book of accounts correctly
In this blog, we will be discussing the maintenance of books and accounts after the VAT registration process. If the registered business does not follow the VAT rules it may lead to big consequences to business from Dubai VAT authority.
What are the books of account that should be Kept.
- The documents or invoices related to outward international supply of goods and services.
- The invoices or documents related to the outward domestic supply of goods and services
- All Debit and credit notes that the company has collected or given during the financial year
- The documents or invoices related to the inward supply of goods and services (credit and debit notes should be kept safe)
- The balance sheet and profit & Loss account should be kept
- Employee salary or wages account should be kept properly
- All documents related to insurance
- Fixed and current assets accounts should be maintained
- In case of errors or omissions, records of error and omission should be maintained
- Records of accounts relating to tax dues, tax returns, and non-collected tax returns.
The Time period for which the Documents should be kept
The Accounting Data should be kept a minimum of one year for further accounting purposes and analytics purposes. But in the case of VAT law, the VAT authority has some laws in keeping the books of accounts safe. Some of the important laws are mentioned below
- In the case of fixed assets or long term assets like real estate, the documents should be kept a minimum of 15 years with the registrant
- The NBRS may some time notify the Registrant to keep the documents for 5 years more than the statutory time limit
The Bookkeeping Formats
In Dubai, you can keep your books of account in Electronic format as well as hard copy format also. It is always good to keep the books of account in electronic format as they need less space and time to manage the records. The easy accessibility of the data and less space taking makes it efficient for bookkeeping
Assistance in Bookkeeping
Dubai VAT authority allows Accounting and auditing firms in Dubai to assist the VAT registrants in keeping their books of account accurate and updated. They also allow auditing firms to do VAT registration on behalf of a client and do the necessary document submission and record keeping. Selecting the best auditing firms in Dubai comes to your choice. Try to find the ones having proper authority from the government and VAT authorities