Bookkeeping crucial for firms today

the five per cent value-added tax introduced by the UAE is one of the best parts of the GCC VAT regime, said Pritam Mathur, associate director, VAT Advisory, Morrison MJS.

He noted that VAT is prevalent in more than 160 countries but the GCC VAT regime has one of the lowest rates in the world.

Mathur was speaking at the ‘VAT Clinic’ in Ras Al Khaimah organised by Khaleej Times and ICAI (Dubai chapter) with the support of Qadi Accountants.

L.K. Verma, president, IBPC — Ras Al Khaimah, said VAT starts with the financial reporting system of companies. He said proper bookkeeping was alien to this part of the world due to the non-existence of a tax regime. But this trend has changed now and businesses have to maintain records properly.

Bhavin Raithatha, manager, system, internal audit and risk, Mayur Batra Group, answered queries of ICAI members from the Northern Emirates about implementation of VAT, both from supplier and buyer perspectives.

— waheedabbas@khaleejtimes.com