A taxable person under VAT in UAE should maintain the following accounts and bookkeeping records:
Records of all supplies and imports of goods and services
All tax invoices and alternative documents related to the receipt of goods and services
All tax invoices and alternative documents issued
All tax credit notes and alternative documents received and issued
Records of goods and services purchased, for which the input tax was not deducted
Records of goods and services disposed of or taken for a usage not related to the business, displaying the tax paid thereon
Records of exported goods and services
Records of amendments and corrections made on accounts and amended tax invoices
Records of any taxable supplies made or received for oil(crude or refined), natural gas (processed or unprocessed) or any hydrocarbons made under the reverse charge mechanism, including any declarations provided or received in respect of these supplies.
Tax Record showing the following:
Tax due on taxable supplies
Tax due on supplies where tax is to be paid on reverse charge
Tax due after correction of errors or adjustments
Recoverable tax after correction or rectification of errors
Input tax recoverable on inward supplies or imports
Additional record of transactions:
Cabinet Decision No. (36) of 2017on the Executive Regulation of Federal Law No. (7) of 2017on Tax Procedures
Accounting Records and Commercial Books shall include the following:
a). Accounting books in relation to that Business, which include records of payments and receipts, purchases and sales, revenues and expenditures, and any business, and any matters as required under any Tax Law or any other applicable law, including:
1) Balance sheet and profit and loss accounts.
2) Records of wages and salaries.
3) Records of fixed assets.
4) Inventory records and statements (including quantities and values) at the end of any
relevant Tax Period and all records of stock-counts related to Inventory statements.
b). Additional records as may be required in the Tax Law and its Executive Regulation.
Special record keeping requirements:
Taxable persons who account for tax under Profit margin scheme are required to keep the following records:
A stock book or a similar record showing details of each Good purchased and sold under the profit margin scheme.
Purchase invoices showing details of the Goods purchased under the profit margin scheme.
Time period for retaining accounts and records:
In case of
15 years from the end of the tax period to which they relate
10 years from the end of the tax period to which they relate
5 years from the end of the tax period to which they relate
Example: A Tax Invoice for a supply on 10th January, 2018 relates to the tax period of January-December 2018. Hence, it should be retained until 31st December 2023.