VAT is implemented in United Arab Emirates from 1st January 2018. Implementation of VAT has come up with a challenge for the businesses in UAE as it is going to change the way business is done.
Transformation of businesses from unstructured to structured layout is witnessed in the region. The regulation on Vat by the Federal Tax Authority (FTA) has mandated every business to keep all records and documents of business transactions in proper manner for at-least 5 years. Every business should have adequate accounting and reporting facilities. These records enable the Authority to verify the authenticity of transactions and to determine the tax liability and its pay off.