VAT Audit in UAE

VAT Audit in UAE

It is essentially a systematic audit of the company’s VAT Ledgers, Sales and Purchases Ledgers Trial balance reconciliation with regular rated sales by licenced Tax Agents. Physical verification of Purchase Tax Invoices and Sales Tax Invoices for the Tax Year, e.g. Jan-18 to Mar-18, as well as zero-rated, out-of-scope, and exempt sales. This guarantees that all obligations are paid and that all taxes due are collected and paid to the government within the period prescribed.

Companies must file VAT returns, which must be prepared correctly and registered with the appropriate values in the appropriate boxes. Tax Agents in the UAE will assist you with this and ensure that it is completed within the prescribed time frame.

Most significantly, the tax owed must be paid and cleared by the agreed deadline. If you already have an authorised tax agent, he will ensure that the entity is VAT compliant according to FTA guidelines (that your dealings are made valid and legitimate and you carry out a safe and clean business.)

Remedial Behavior

Companies are also concerned with dealing with a TAX audit, which can be prepared and well-organized if you have a tax expert on hand to assist you.

Before the FTA audit notice, authorised Tax Agents in the UAE can conduct a VAT audit.

  1. The entity’s management will receive an Accounting Archiving Report and an Accounting Data Correction Report, all of which will provide observations and corrective measures.
  2. If changes to the tax periods are required, voluntary disclosures will be prepared and sent to FTA.
  3. Adjustment may be made in the next tax year if the VAT effect is less than the Voluntary Disclosure threshold.

The Benefits

  1. The company will be VAT compliant in accordance with FTA rules, reducing the risk of FTA fines. 
  2. The firm will be well-prepared for the FTA Audit
  3. During the audit, management should ask authorised tax agents any questions they have about VAT filing and FTA guidelines.