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VAT Audit Services

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VAT Audit Services

The United Arab Emirates imposed VAT on each stage of the supply chain from January 1, 2018. This VAT compliance is mandatory by the Federal Tax Authority (FTA) otherwise the taxable entities are being penalized. The authorities can anytime announce a VAT inspection of your financial records and transactions. We are here to get you covered by our expert VAT audit services in Dubai, which will critically evaluate your tax collections, payments, and VAT compliance. Before auditors verify the accuracy of your tax handling, our staff examines overall system flaws in accordance with FTA guidelines and assists you in necessary rectifications to avoid hefty penalties during an FTA audit.

What Is A VAT Audit?

VAT audits in UAE refer to an official inspection of tax records, and books of account by the Federal Tax Authority.  In this way, tax auditors identify the VAT non-compliance as per UAE tax laws. The main objective of these VAT audits is to increase financial stability and fair implication of taxation in the United Arab Emirates.

Who Conducts The VAT Audit In UAE?

According to the Tax Procedures Law, the VAT/ Tax Audit is only conducted by the UAE official regulatory agency called as Federal Tax Authority (FTA). Under the  Federal Law by Decree No. 13 of 2016, the authority is responsible for examining and collecting taxes in a specified time frame. When a taxable business non-compliances with the VAT laws the authority charges heavy fines and penalties.Importance Of VAT Pre-Audit Health Check

The VAT pre-audit health check is as important as the VAT registration, VAT refund or returns filing, and other VAT compliance activities. This is a proactive approach for small and large companies to prevent unexpected fines and penalties. The tax audit in UAE is determined whether the taxable entity follows VAT laws and regulations or not. This assessment is better to perform prior to saving the business from non-compliance with value-added tax. The pre-audit health check verifies all your tax-related documents and records and notifies the organization about the flaws in the current system. Our accountants and VAT experts in Dubai suggest to you the best tax policies, strategies, and procedures as per FTA standards.

How Does FTA Select A Company For VAT Audit In UAE?

There are no proper criteria for selecting a company for VAT audit in Dubai, Abu Dhabi, and any other Emirates. It is not mandated that all taxable entities will be audited by the Federal Tax Authority. There is no specified time, place, or frequency of conducting an audit. It totally depends upon the relevant authorities when they select a business for official tax scrutiny. Following are some factors considered while selecting any target for auditing.

  • Whether the business is large or complex
  • History of business about past compliance activities
  • Late submission of returns is a common phenomenon
  • Errors and mistakes in filing VAT returns, etc

The Procedure Of FTA VAT Audit In UAE

Under the Tax Procedures Law, the official regulatory FTA in the UAE is responsible for conducting a tax audit. The authorities notify the registered business at least five days prior to the inspection. The VAT audit in Dubai is mostly conducted on business days for any reason. The authorities decide the place of audit, a sample of goods, and request original or copied documents. The FTA’s tax auditors will inspect the tax returns and other related information while conducting a tax audit in the UAE.

The tax agents and legal representative presence is recommended to assist the FTA VAT auditors. If the auditors find any flaws or irregularities in the records, then they have the right to re-audit the taxable business anytime. To prevent your company from VAT non-compliance and penalties you can seek help from certified tax consultants of BestaxCA. Our associated VAT audit services in Dubai, fully assist companies before and during the inspection by the relevant authorities.

Details Needed For VAT Audit In Dubai

  • Records of Goods that supplies and Imports
  • Tax Credit Notes and invoices received and issued
  • Valid information about exported Goods and Services
  • Purchases of goods and services without deduction of input tax
  • Account adjustments or corrections of tax invoices or records are maintained in an accurate manner
  • Customs declarations and invoices from the suppliers of goods imported into the state
  • Detailed records of fixed assets or capital assets purchased as well as the amount of input VAT claimed

Tax Evasion Penalties By FTA

The individuals and businesses involved in the illegal activity of tax evasion will be levied high fines by the FTA. The list of penalties is mentioned below:

  • In the event that financial records are not maintained, a penalty of AED 10,000 will be imposed for the first time and AED 20,000 in case of repetition
  • If a person fails to facilitate the Tax Auditor’s work, they will be penalized by AED 20,000
  • An infringement of UAE tax laws may also result in the closure of the business and the cancellation of the trade license
  • The penalty for filing an incorrect tax return for the first time is AED 1,000 and AED 3,000 in case of repetition
  • In the event that a taxable person fails to submit a VAT registration application within the time stipulated in the tax law, AED 10,000 will be charged

 

How Does BestaxCA Conduct Pre-audit Assessment?
Bestax Chartered Accountants and tax advisors in Dubai, help businesses in making them VAT compliant as per the UAE laws. Our dedicated team guarantees 100% results and promises to prevent you from sanctions. We offer reliable VAT audit services in Dubai for national and international clients. We understand the significance of VAT health checks for taxable entities. There are a number of things our tax consultants consider while examining your financial records. In our pre-audit assessment we will verify the following:

  • Tax Invoices verification
  • Maintenance of books of account
  • Verify your general ledger, trial balance, etc.
  • Examine Custom Records Reconciliations
  • Evaluation of VAT Returns
  • Carefully consider Deadlines by FTA
  • Cross-checking of VAT-related accounts
  • Update records as per UAE VAT laws
  • Check the accuracy of Input & output tax
  • Implement suitable Accounting Software
  • Assist you in the Submission of the Final Audit Report
  • Recommendations for new tax policies and strategies

 

Get in a hurry and select the top-notch VAT audit services in Dubai, UAE for tax-registered businesses. Just contact us and we will be glad to help you in more personal ways.

The best way to avoid any kind of VAT penalties is by taking the help of a professional Tax Consultant who can guide you about the legal requirements and documents needed for compliance.

 

Yes, we provide VAT consultancy services to our clients to help them understand the requirements and procedures for VAT registration and compliance. Our team of experts also guides businesses about the documents needed for VAT registration.

 

Yes, we can help you with the VAT registration process. We will guide you about the documents needed for registration and will also assist you in filing the application.

 

A: If your business is registered for VAT, you will need to file a VAT return. The frequency of filing will depend on the turnover of business you have.

 

A: If you file your VAT return late, you may be subject to a late filing penalty. The amount of the penalty will depend on the number of days late and the value of the tax due.

A: Input tax is the VAT you have paid on purchases made by your business. Output tax is the VAT you have charged on sales made by your business.

 

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However, I was the head of the finance department yet still found it difficult to conduct a financial audit in accordance with UAE regulations. Although, due to the competence and experience of BextaxCA's qualified auditors, all my concerns have been resolved

ylie Johnson

Accounts Manager, Abu Dhabi, General Trading Company

I utilized BestaxCA's accounting and bookkeeping services for my retail business in Abu Dhabi. It was fascinating to observe how they handled the finances. They provided me with out-of-the-box accounting solutions, which were really useful

Abdul Kaleem

Finance Manager, Dubai, Manufacturing Company

As per FTA requirements, the Bestax Chartered Accountants in UAE assisted me with VAT registration and filing. I personally consult with their tax experts to ensure they have the expertise necessary to provide timely answers

Abdul Kaleem

Finance Manager, Dubai, Manufacturing Company

I was so happy with the BextaxCA's services that I decided to use them for my personal tax planning and return filing. They really know their stuff when it comes to taxes!

Dwayne Perkins

Accounts Manager, Dubai, Services Provider

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