It is important to understand any potential obligations you or your business may have under the UAE VAT legislation. The FTA is committed to provide extensive support and guidance to assist with this. However, the responsibility lies with the business to make sure that any required compliance obligations are fulfilled. The FTA has the power to conduct audits on taxable persons and subsequently impose penal measures on those that are not compliant with the law.
To fully comply with the UAE VAT legislation, businesses may need to make some changes to their core operations, financial management and book-keeping, technology, and perhaps even their human resources.
It is essential that businesses try to understand the implications of the new taxes and make every effort to align their business model to government reporting and compliance requirements.