Running VAT correctly helps save money and reduces stress. Many small businesses in Dubai face challenges with basic VAT tasks, leading to penalties, late filings, and wasted time fixing errors. This checklist gives eight practical steps you can take this week to get VAT under control.
1. Confirm registration status and VAT number
Check if the business is registered for VAT if taxable supplies exceed the mandatory threshold.
Keep a copy of the VAT registration certificate and store the VAT registration number with invoices and accounting records. This prevents missing or incorrect VAT IDs on invoices.
2. Organize records and maintain an audit trail
Store sales invoices, purchase invoices, receipts, and import documents in one place, either physically or digitally.
Ensure digital copies are clear and backed up. Use a consistent file naming pattern for all months. Keeping records in order makes audits easier and VAT reconciliation simpler.
3. Standardize invoices and include required fields
Every VAT invoice must show the supplier name, VAT registration number, invoice number, issue date, customer details, taxable supplies, VAT amount, and total.
Use a template to ensure team members include all necessary fields. Missing fields can cause issues with VAT adjustments.
4. Reconcile VAT accounts monthly
At the end of each month, check the output VAT collected and input VAT claimed.
Follow a quick checklist: ensure all invoices are recorded, match supplier VAT with payments made, and check for duplicate invoices. This monthly habit helps avoid surprises when filing.
5. Track VAT on imports and reverse charge rules
If you import goods or services, ensure the import VAT and customs documentation are accurate.
For cross-border services, apply the reverse charge where needed. Get written confirmation from the supplier that the supply is outside the UAE for VAT purposes.
6. Keep supplier documentation for input VAT claims
Input VAT can only be claimed with valid supplier invoices.
If a supplier invoice is missing required details, request a corrected copy promptly. For expenses paid with corporate cards, attach the bank statement and supplier invoice to the same record.
7. Use accounting software and set up rules
Connect your bank to an accounting tool.
Set up rules to automatically categorize regular expenses. This cuts down manual bookkeeping time and reduces errors that affect VAT. Run the VAT report from the accounting software and compare it to your reconciled VAT ledger before filing.
8. Book a VAT healthcheck and build a month end SOP
Create a simple month-end standard operating procedure.
Assign responsibility for VAT checks, invoice collection, and filings. If this feels overwhelming, a short healthcheck will highlight quick fixes. A small change today can prevent fines and save time every month.
Quick checklist (for small UAE businesses)
1. VAT registration certificate stored and accessible.
2. Standard invoice template in use.
3. Digital records uploaded and named.
4. Monthly VAT reconciliation completed.
5. Import documents verified.
6. Supplier invoices checked before claiming input VAT.
7. Accounting software rules in place.
8. Responsible person assigned for month end.
Book a free 20-minute VAT health check with JRN Consultants today. We will review up to three recent transactions and send a simple 3-step fix you can implement in days.
