VAT Systems and its operation

Now the businesses is UAE are responsible for carefully documenting their business income and costs. Registered businesses and traders will charge VAT to all of their customers at the prevailing rate at the time of sale or service. The VAT paid on goods / services that they buy from suppliers will be considered as input VAT which can be reduced from the VAT payable to the government. The net result is that tax receipts to government which reflect the ‘value added’ throughout the supply chain.