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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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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.

 

Avail best quality Auditing and Accounting services from JAXA

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.

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Advantages of VAT Audit Liaison with FTA

Ensure VAT Compliance

The VAT audit in UAE will facilitate a review of previously reported VAT returns to identify any errors, thereby avoiding the risk of non-compliance by the Tax Authority itself, which can result in higher penalties for companies. 

 

​Facilitates Cost Saving

Due diligence checks will decrease the risk of inadvertent double payment of VAT and further assist in reducing exposure to penalties from the Tax Authority.

​Helps Prepare for Future

The business will be prepared to face official tax audits by having all the required details ready and avoiding errors that may happen due to last-minute hastiness.

​Support the Economy of the Country

The examination of compliance reduced the chances of fraudulence.

What we provide

  • We understand your business and accordingly provide a solution to the Company. For more assistance with VAT Audit in UAE, contact us.

  • We have an experience of 15+ years with a team of over 75+ employees.

  • Over a decade of quality services has made us one of Dubai's most preferred auditing and accounting firms.

Process

1

Client approaches JAXA

The client Approaches JAXA and provides all the data about the Company.

2

Understanding the Business

The information provided by the Company is analyzed.

3

Vat Audit Report

JAXA will generate a VAT Audit Report which will provide an idea of the present condition of the VAT Filing.

4

Review of the Audit Report

Check that all the information is in order and the business complies with all the rules and regulations of the jurisdiction.

FAQs

What are VAT Audit Services in the UAE?

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.

 

What is a VAT Audit in Dubai, UAE?

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.

 

Which entities need to prepare for VAT Audit?

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.

 

What are the benefits of VAT Audit Services for a business?

VAT Audit services have a lot of benefits for a business, as mentioned below:

  1. It will help the management if properly presenting the information to the concerned authority and will also help in checking compliance.

  2. It will have financial benefits for the Company.

  3. It will increase the trustworthiness of the Company.

 

Is the Availing of the VAT Audit Services mandatory?

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.