The expected date of implementation of VAT in the UAE is January 1, 2018. The available time of about 2 months from now is essential for companies to prepare for the new tax system and “prepare for value-added tax”.
“VAT ready” does not mean that you are ready on January 1, 2018, it means that VAT is ready today.
The first is to ensure that all financial transactions are recorded and that the account books are accurate and up to date.
This is because the account books will serve as the basis for the minimum turnover threshold for the registration year.
On this basis, you will be required to register or can request an exemption from registration.
Secondly, “VAT preparation” means that you must collect value-added tax on the supply of taxable goods and services, and pay the paid value-added tax at the time of purchase so that you can claim input tax deductions.
Finally, you must regularly submit a VAT declaration online The table discloses details of the VAT collected and paid.
Therefore, the first step towards VAT readiness is to explore the best VAT software that will not only help you meet VAT requirements tomorrow (after VAT is implemented in the country), but it will also help you seamlessly transition to the new The era of value-added tax.
In addition to exploring the best VAT software, companies must also understand the basic principles of VAT and its business implications.
We foresee that companies may have to make changes to their business operations, financial management, bookkeeping, etc., to fully comply with VAT requirements. Here are a few key tasks to prepare for VAT:
1. Explore the best VAT software-adapt and adapt to your business activities
2. Build organizational capacity by introducing the basic knowledge of VAT to your team and its impact on the business
3. In accordance with the value-added tax requirements, review your business processes, conventions and procedures-mainly prices, purchases, invoices, logistics, etc., and adjust accordingly
4. Make sure the account books are correct and update the date
5. Notify your suppliers and customers of the value-added tax and the subsequent impact on the transaction
6. Prepare and convert to VAT