Most VAT problems in a review or audit are not about the rate. They come from missing or incomplete paperwork. A tidy record-keeping routine makes returns faster to prepare and much easier to defend.
What a tax invoice should show
A document should be clearly marked as a tax invoice and include, at a minimum:
- The supplier’s name, address and Tax Registration Number.
- The customer’s name and address, and their Tax Registration Number where relevant.
- A unique invoice number and the date of issue.
- A description of the goods or services, with quantity and unit price.
- The VAT rate, the VAT amount and the total, in UAE dirhams.
How long to keep records
For most records the general requirement is five years, and certain real estate records must be kept for longer. Records should be complete, legible and available for inspection when the Federal Tax Authority asks for them. Confirm the current requirements before you set your retention policy.
A simple monthly routine
- Match every purchase invoice to a supplier statement and a payment.
- Check that sales invoices are numbered in sequence with no gaps.
- Review input VAT claims for missing supplier details.
- Reconcile the VAT control account to the return before filing.