Tax Procedures, which sets the foundations for the planned UAE tax system, regulating the administration and collection of taxes and clearly defining the role of the Federal Tax Authority (FTA). Businesses must Familiarize with the Tax Procedure and VAT Regulation and identify the key action point for their steps towards making business accounting and documentation fully compliant and ready for any inquiry and Tax Audit from Federal Tax Authority (FTA).

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Accounting and Book-keeping Requirements
United Arab Emirates (UAE)
Introduction
President of the UAE, has issued the landmark Federal Law No. (7) of 2017 for Tax
Procedures, which sets the foundations for the planned UAE tax system, regulating the
administration and collection of taxes and clearly defining the role of the Federal Tax
Authority (FTA).
Tax Procedure Law – Related to Accounting Records
Article 4 of Tax Procedure Law mandate every person conducting business to keep proper
“Accounting Records and Commercial Books”.
Further the Cabinet Decision No. (36) of 2017 on the Executive Regulation of Federal Law
No. (7) of 2017 on Tax Procedures in Article (2) defines what exactly includes in “Accounting
Records and Commercial Books”.
What is "Accounting Records and Commercial Books"
As per Executive Regulation on Tax Procedures in Article (2) Accounting Records and
Commercial Books shall include the following:
1. Records of all Payments and Receipts
2. Records of all Purchases and Sales
3. Records of all Revenues and Expenditures, and
4. any business, and any matters as required under any Tax Law
Further it shall also include the following:
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.

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Time Limit for keeping Accounting Records
As per Article (3) of Executive Regulation on Tax Procedures, following person requires to
keep the accounting records for the following period:
For Taxable Person - for the period of 5 years after the end of Tax Period and,
For Non-Taxable - for 5 years from end of calendar year in which the concerned documents
was created.
Tax Audit - UAE
Under Tax Procedure Law No. (7) - Article (17), The Authorities may perform a Tax Audit on
any person to verify the extent of that Person’s compliance with the provision of this Law
and the Tax Law.
UAE - VAT Law Requirement in relation to VAT related Accounting Records
RECORDS REQUIRED TO BE MAINTAINED UNDER UAE VAT LAW
As per Article (78) of Law No. (8) on Value Added Tax a taxable person shall keep the
following Records:
1. Records of all supplies and Imports of Goods and Services.
2. All Tax Invoices and alternative documents related to receiving Goods or Services.
3. All Tax Credit Notes and alternative documents received.
4. All Tax Invoices and alternative documents issued.
5. All Tax Credit Notes and alternative documents issued.
6. Records of Goods and Services that have been disposed of or used for matters not
related to Business, showing Taxes paid for the same.
7. Records of Goods and Services purchased and for which the Input Tax was not
deducted.
8. Records of exported Goods and Services.
9. Records of adjustments or corrections made to accounts or Tax Invoices.
10. Records of any Taxable Supplies made or received in accordance with Clause (3) of
Article 48 of this Decree-Law, including any declarations provided or received in
respect of those Taxable Supplies. (Goods and Services under Reverse Charge)
11. A Tax Record that includes the following information:
a. Due Tax on Taxable Supplies.
b. Due Tax on Taxable Supplies pursuant to the mechanism in Clause (1) of
Article (48) of this Decree-Law. (Reverse Charge)
c. Due Tax after the error correction or adjustment.
d. Recoverable Tax for supplies or Imports.
e. Recoverable Tax after the error correction or adjustment.

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Time Limit of Keeping VAT Records
As Per Executive Regulation of UAE VAT, under Article (71) taxable person requires to keep
the accounting records for the period of 5 years after the end of the Tax Period.
However, records related to a real estate required to be kept for the period of 15 years after
the end of Tax Period to which they relate.
The Takeaway
Businesses must Familiarize with the Tax Procedure and VAT Regulation and identify the key
action point for their steps towards making business accounting and documentation fully
compliant and ready for any inquiry and Tax Audit from Federal Tax Authority (FTA).
Let’s Talk
For a deeper discussion of how this issue might affect your business, please contact:
BETA CONSULTANTS
CA JAYESH RAWAL
Senior Consultant
Mob. No.: - +971 58 137 8604
Email: jayeshrawal@betaconsultants.ae
This publication has been prepared for general guidance on matters of interest only and does not constitute
professional advice. You should not act upon the information contained in this publication without obtaining
specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or
completeness of the information contained in this publication, and, to the extent permitted by law, Beta
Consultant, its members, employees and agents do not accept or assume any liability, responsibility or duty of
care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information
contained in this publication or for any decision based on it.