IPT no longer offers support for your version of Internet Explorer.

To make use of the IPT site features, upgrade to the latest version of Microsoft Internet Explorer here FOR FREE.

News

UAE firms must prove VAT-compliance

25 September 2017

UAE logistics firms must prove VAT-compliance
by ASC Staff on Sep 25, 2017, www.arabiansupplychain.com

Companies operating in the UAE will need to prove their VAT compliance to tax officials, according to Girish Chand, director, MCA Chartered Accountants, who spoke at the VAT Talks conference in Dubai.

The sessions were held to discuss the impact of VAT on business operations, especially their supply chain, working capital, commercial operations and IT systems.

"When a tax official visits your company, he can ask for your records and it's the responsibility of the retailer, wholesaler or any other company to prove that their company's turnover is less than the mandatory threshold limit,” he explained.

“In addition, companies also need to show their records if the company is charging the VAT from the client. Hence, maintaining records would become obligatory for all the entities operating in the UAE," Chand added.

Those companies which are not registered for VAT cannot charge the tax from the customers.

It's the responsibility of the companies to prove that they are VAT-compliant in according with the UAE laws as the tax officials from the Federal Tax authority may visit the company to check records to ensure compliance with the new tax regulations, according to Chand.

The UAE has announced that it will implement VAT from January 1, 2018, at five per cent. In addition to the UAE, Saudi Arabia has also announced implementation of VAT as part of an agreement between GCC states.

Girish pointed out that if a UAE-based supplier is exporting goods to any registered company in Saudi Arabia, then the local exporter here in the UAE will not have to charge VAT on the goods but the Saudi company will account using the Reverse Charge Mechanism.

Similarly, it's vice-versa for Saudi and Emirati companies.

VAT Talks Chapter was hosted by Incospro and Katerpillar with AAC's to create a networking session for businesses and entrepreneurs.

This session was addressed by experts from Tally, MCA, Aurifer to explain regulations about value-added tax set to be implemented next year.

A VAT Masterclass is being held on September 26th at the Fairmont Dubai from 9am to 1pm and will cover VAT from every angle, from the basics right up to the more complex VAT rules.

Click here for full original article

More News Stories