Posted on Oct 24, 2017
To ensure proper and controlled business management, maintenance of books of account is a mandatory step and should be taken into huge consideration. Nevertheless, it is mandatory to maintain the books of accounts under UAE company law and VAT law.
There is a general truth that the secret to the success of a business lies is the proper maintenance of accounting books and documents. This not only results in proper management and control of the business functions but also in effective business planning. In addition, it ensures flawless receipt and payment of cash and other transactions done by the company.
As per the UAE company law and VAT law, it is utmost mandatory for businesses to maintain the books of accounts. Let’s get to know more about the findings under Article 26.
Account Records-Under UAE VAT Law (as per clarifications given for Draft Law).
It is mandatory for every taxable person to maintain books of accounts under UAE VAT law. In addition to that the authority can ask for additional documents such as, annual accounts, general ledger, purchase day book, invoices issued, invoices received, credit notes, debit notes, VAT Ledger etc.
Under the UAE VAT law the books of accounts and records need to be sustained for five years.