Part 2/8:
A recent conversation with a trusted UAE accountant highlighted a critical shift: the UAE is adopting a more stringent European-style accounting system. Previously, the UAE was perceived as a tax-free haven, where income could flow in and out with little oversight. However, this is no longer the case. Now, the Federal Tax Authority (FTA) expects clear documentation for all transactions, including invoices and proof of expenses. This shift is particularly pressing for businesses that exceed a specified profit threshold, as they are also liable for Corporate Tax and Value Added Tax (VAT).