Maintenance of Books of Accounts
It’s mandatory for every taxable person to maintain proper books of accounts according to the UAE Vat Law.
As per UAE Vat Law Every taxable person should keep the record of documents like , annual accounts, general ledger, purchase day book, invoices issued, invoices received, credit notes, debit notes, VAT Ledger etc.
Under the UAE VAT law the books of accounts and records are to be maintained for five years.
Every business organization has to keep an accurate record of each and every transaction which will help to display the actual financial position of the business. The owner or the partner should confirm that the books of accounts are maintained as per the UAE Vat Law.
Bookkeeping is essential for proper control and management of business operations. This practice will help in the matter of coming up with accurate receipt and cash payment, including other transactions registered by the company as well. Since it is mandatory under the UAE company Law and Vat Law, violation of the rule might land the firm in legal hassles.
If a taxable person or business fails to keep required records, books and documents, penalty of AED 10,000 will be given and then AED 50,000 if repeated again.