In a step to facilitate paying due tax, the FTA is introducing a new unique method of paying due tax as follows:
To pay the amount due using GIBAN, follow the below steps:
Tax returns and payments may be submitted 24 hours a day on the website,” Al Bustani said. “Taxable persons can visit the website, select the eServices portal, click on the “VAT” tab to access and fill the tax returns form. Users can then submit the tax return and proceed to paying the tax under the ‘Payment’ tab.
“Taxable persons may, at any time, request assistance from one of the FTA-accredited tax agents whose names are listed on the website.” The FTA said that although tax returns must be submitted electronically, accounting records and documents relating to business activities must be kept, including the balance sheet, profit and loss account, payroll records, wages, fixed assets, records, and inventory statements.
In addition to the payable (or repayable) tax for the period, returns must also detail the value of both standard-rated and zero-rated supplies made during the period, the value of exempted and reverse-charged supplies, and the value of any expenses incurred.
The poll prepared by our professional body, Association of Chartered Certified Accountants (ACCA) together with Thomson Reuters has found that there is a "significant lack of preparation and awareness".
The VAT regime in the UAE, KSA albeit GCC will have considerable impact on the business operations and profitability. Companies dealing in goods and services that attract the tax must understand and prepare for the implications. Similarly, entities that import goods or transact with Zero-Rate or Tax Exempt entities must, at an early stage, consider the impact of VAT. You need a better control or you may get in to the vicious cycle Group of companies with operations in other GCC countries must closely examine the impact of intra-group and cross-border transactions. While there is a unified VAT agreement across GCC, each member state has the right to enact its own laws within the broad framework. These different treatments have to be understood.
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Hitherto most business did not have to account separately for tax and hence the invoicing was fairly simple and straightforward. Introduction of VAT will require the re-haul of the invoicing as well as the tax accounting modules in the existing software. Businesses will also have to record the supplier bills and their VAT registration number.
The accounting system will have to automate the computing and reporting of input credit and output liability. In most probability each country will have a portal for filing returns electronically using pre-defined formats. The IT systems will have to be modified to prepare the digital files for uploading to the government portals
The law will specify the period for keeping the records and these records will have to maintained for all transactions including the changes in master data. The IT system will also have to accommodate the recording of refunds and claims that may have happen in the future during audit.
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