VAT return preparation: the records to keep every month
The monthly record set that turns a UAE VAT return into a review rather than a reconstruction, with the registration thresholds and filing deadline that govern it.
UAE VAT is charged at 5%. Registration is mandatory once taxable supplies and imports exceed AED 375,000 a year and optional above AED 187,500. A VAT return must be filed, and any payment made, within 28 days of the end of the tax period. Businesses that reconcile output tax, input tax and the VAT control account every month file from reconciled records; businesses that do not spend the 28 days rebuilding them. Tax invoices must be retained for at least five years, and Corporate Tax records for at least seven.
By Krest Business · Published 4 September 2026
Last reviewed: September 2026
Who must register for VAT in the UAE?
Registration is mandatory where the taxable supplies and imports of a UAE-based business exceed AED 375,000 per annum. Voluntary registration is available to a business whose supplies and imports exceed AED 187,500 per annum, which can suit a start-up that incurs recoverable input tax before it reaches the mandatory threshold.
The test looks at the nature of the supplies as well as their value. Zero-rated, exempt and out-of-scope activities behave differently, so two businesses with identical revenue can reach different registration conclusions.
When is the VAT return due?
The Federal Tax Authority requires the return to be filed, and payment made, within 28 days from the end of the tax period. The UAE Government portal describes standard tax periods as quarterly for businesses with annual turnover below AED 150 million and monthly at or above that figure, so most SMEs file four times a year.
Twenty-eight days is enough to review a prepared return. It is not enough to classify a quarter of unposted invoices, chase missing supplier documents and reconcile a bank account at the same time.
What records must a UAE business keep for VAT?
Keep this set current every month rather than assembling it at the deadline. Each item is something the return, or a later Authority query, will ask for.
- Sequentially numbered tax invoices issued, in the required format, including the TRN and the tax shown separately.
- Purchase invoices supporting every input-tax claim, in the name of the registered business.
- Import documentation and customs declarations, reconciled to the goods received.
- Credit notes and the reason for each adjustment.
- A classification record for zero-rated, exempt, reverse-charge and out-of-scope transactions, with the basis for the treatment.
- Bank, cash and payment-gateway reconciliations for the period.
- A VAT control account reconciling output tax and input tax to the general ledger and to the filed return.
- Copies of filed returns and payment confirmations, filed with the working papers that produced them.
A monthly rhythm that holds
The five-stage cycle Krest Business follows on VAT engagements works because each stage closes before the next begins.
- 01Post the month's sales, purchases, expenses and journals in full.
- 02Reconcile bank, cash and gateway accounts, and clear unidentified items.
- 03Review transaction classifications, and document anything unusual while the facts are fresh.
- 04Reconcile the VAT ledgers to the accounting records and investigate differences.
- 05At period end, prepare the return for management review, then support submission and archive the filing record.
How long must the records be retained?
A taxable person must retain VAT invoices issued and received for a minimum of five years. Corporate Tax record-keeping runs longer: the Federal Tax Authority's press release of 27 August 2025 states that taxable persons and exempt persons must retain relevant records for at least seven years following the end of the tax period. Where a business is registered for both, the longer period is the practical one to work to.
VAT treatment depends on the facts of each transaction. Final filing responsibility remains with the taxable person, and registration thresholds and treatments should be confirmed against current Federal Tax Authority guidance.
Sources
Regulatory statements above are taken from the following official pages, checked in September 2026. Requirements change; confirm the current position before acting on it.