VAT Audit Liaison with FTA
It is pertinent that all VAT-registered businesses should be ready with their VAT records and accounts to avoid any possible penalties.
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JAXA Chartered Accountants is an UAE-based accounting firm specializing in high-quality bookkeeping, accounting, auditing, and tax preparation services.
The Federal Tax Authority (FTA) conducts VAT audits service in Dubai periodically to ensure compliance with all the VAT Regulations by the companies in the UAE. This is part of the enforcement procedures of FTA as laid down by the Tax Procedures Law published by the Ministry to identify non-compliances and possible tax evasion among VAT registrants.
The Federal Tax Authority, UAE, has recently increased the tax audits so that a company can expect a call for a VAT audit at any time per the concerned authority’s requirement. Therefore, it is pertinent that all VAT-registered businesses should be ready with their VAT records and accounts to avoid any possible penalties.
VAT Law in Dubai UAE
Before proceeding, it’s essential to gather information about VAT law in Dubai. Refer to the list below:
- VAT applies to all businesses in UAE with taxable turnover exceeding AED 375,000/-, who are expected to register for VAT and obtain Tax Registration Number (TRN)
- The base VAT rate is 5%, and certain supplies of goods/services are eligible for 0% VAT
- Certain supplies of goods/services are exempt from VAT
- VAT registrants must submit periodical VAT returns (monthly/quarterly) within 28 days from the end of the tax period, and
- Keeping proper books of accounts and records is mandatory as per Tax Procedures Law.
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The expert will help to tackle business issues by following proper Accounting and Auditing guidelines will also assist you to scale up your business. JAXA also provides various other services such as Tax Services, Payroll Services, Cash flow forecasting and many more.
Jaxa Chartered Accountants provides reliable VAT services in Dubai, UAE, supported by a team of experienced auditors and tax consultants to ensure complete VAT compliance.
Ensure VAT Compliance
Facilitates Cost Saving
Helps Prepare for Future
Support the Economy of the Country
Strengthens regulatory relationships
Supports Effective Financial reporting
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Vat Audit Report
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VAT audits are official scrutiny carried out by the Federal Tax Authority in UAE of the VAT returns submitted and the books of accounts maintained by VAT-registered businesses in UAE. The purpose of these audits is to scrutinize and identify non-compliances that can further lead to the imposition of administrative penalties by the Tax Authority.
It is a complete review and examination of the information provided by a company at the time of VAT return submissions.
Internal audits will help the management to identify non-compliances and ensure the accuracy of adherence to the VAT Laws in UAE. This further helps to ensure readiness to provide required information to the Tax Authorities when the authority demands it.
It is advisable for all companies that are VAT registered in the UAE to have periodic audits/health checks professionally done by external consultants to ensure VAT compliance.
VAT Audit services have a lot of benefits for a business, as mentioned below:
It will help the management if properly presenting the information to the concerned authority and will also help in checking compliance.
It will have financial benefits for the Company.
It will increase the trustworthiness of the Company.
No, it is not mandatory for companies to avail of VAT audit services from external VAT consultants. However, since the companies would eventually face official Tax Audits by the FTA, it is highly recommended to have an audit done by a professional VAT consultant to ensure compliance with the VAT Regulations for the companies to be ready with the information needed by Tax Authority.