Brainciti Management Consultancies has prepared a list of guidelines and advices from our Tax Experts aimed to assist you when getting prepared for the VAT Return Submission. Kindly follow the advices listed below and don’t forget that we are 24/7 here to assist you in any of your queries.
We kindly request our Clients to make themselves knowledgeable on the UAE law and Cabinet Decision on Value Added Tax (VAT):
- Federal Law No. (7) of 2017 on Tax Procedures, 11 Jun 2017.
- Cabinet Decision No. (36) of 2017 on the Executive Regulation of Federal Law No. (7) of 2017 on Tax Procedures, 24 Sep 2017.
- Cabinet Resolution No. (40) of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE, 24 sep 2017
- Federal Decree-Law No. (8) of 2017 on Value Added Tax , 23 AUG 2017.
- Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax, 26 Nov 2017.
- Cabinet Decision No. (59) of 2017 on Designated Zones for the purposes of the Federal Decree-Law No. (8) of 2017 on Value Added Tax, 28 Dec 2017.
Effective Date: Jan 1, 2018
Our Clients are strongly advised to check their FTA portal to stay updated on any changes/updates as well as note their Tax periods and VAT return due dates and arrange timely submission of returns.
Email communication with federal tax authority (FTA)
- Please note, that any communication from Federal Tax Authority (FTA) to the registered email must be replied within a maximum of 48 hours.
- In case you require assistance from Brainciti Management Consultancies to prepare a reply to the email from FTA, please forward it to us not later than within 24 hours from receiving it (vat@brainciti.ae).
- Monitoring of registered email from FTA and communication with FTA is out of the scope of our standard service package.
- Daily monitoring of registered email from FTA and on timely communication is a responsibility of the Registered Person.
How to Prepare Tax Invoices
Clients are advised to have proper Accounting in place. Thus, once you decide to go for outsourcing with Brainciti Management Consultancies the VAT Return Filing service you will receive a free guide on “How to Keep Your Accounting Records in Compliance with VAT”.
- Any sales transacted must be supported by a Tax Invoice.
- Tax Invoices must be maintained according to specifics in VAT Law (Chapter Five Article 65).
- Tax Invoices must be sequentially numbered and dated.
- Tax Invoices must clearly mention the % of VAT applied in case of each supply.
- Tax Invoices must state the amount of VAT and the total amount in AED or conversion amount in AED if the Invoices are issued in currencies other than AED (Article 69).
- Any purchases/expenses on which Input VAT is claimed, must be supported by proper Invoice which contains TRN of the supplier, VAT rate and amount.
Our Certified Accountants and VAT Experts are always happy to answer any additional questions.
Kindly check the Tax Invoice template below and let us know in case you will require any professional advice.
General Guidelines
- VAT ledgers must be maintained – VAT Payable, Input VAT
- VAT must be accounted upon receipt of funds/completion of service/Issuing the invoice, whichever is earlier.
- Tax Debit and Credit notes must be in place and issued whenever there is cancellation of already accounted transactions.
- Import of services must be accounted on Reverse charge basis (Chapter Four Article 48).
- Any supplies without mentioning VAT separately shall be considered as inclusive of VAT and accordingly payable to FTA.
- Any goods imported/exported must be properly accounted for.
- Statements from Customs must be obtained monthly basis and reconciled with Accounts; any difference must be checked and corrected.
- Any amendments/revisions/circulars on VAT must be implemented in Accounting as soon as issued.
- Foreign currencies must be accounted at the exchange rates provided by Central Bank of U.A.E and payments must be routed through corporate bank account.
- All receipts and payments must be routed through corporate bank account.
- At any time, the Invoices/Receipts/Debit Notes/Credit Notes/any other accounting documents must be available in original for verification by FTA officials (Title Ten Article 78).
