Top Ten most common mistakes made by SMEs in compliance with UAE VAT

It has been almost 2 years since the Value added tax was implemented in United Arab Emirates.  We have observed in certain cases the following mistakes in relation to the compliance with rules and regulations of the UAE Value Added Tax

1. Failure to issue valid tax invoice
2. Non maintenance of the records
3. Mistakes in calculation and payment due tax  on due date
4. Delay in submission of vat returns
5. Submission of incorrect vat returns
6. Non having the right accounting setup, accounting software and dedicated person
7. Reliance in the freelancers with limited understating of the vat rules and regulations and non availability when its needed most by the companies
8. Limited understanding of the exempt, zero rated and outside scope supply of the goods and services
9. Incorrect input tax deduction & claim of input on blocked items or liked to exempt supplies - such as entertainment expenses, expenses incurred in a personal capacity, medical insurance, etc
10. Delay in amendment of VAT registration details from time to time

It should be noted that the administrative penalties are in place for the errors / omissions committed in relation to the timely and correct compliance with UAE VAT rules and regulations.

We at Gupta Accountants could assist you in compliance with UAE VAT rules and regulations and safeguard your business interest at best.