The Federal Tax Authority (FTA) conducts VAT audits on a periodical basis 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 FTA has in recent times increased the tax audits so a company can expect to be called up for a VAT audit at any time as per the requirement of the concerned authority. It is pertinent that all VAT registered businesses should be ready with their VAT records and accounts to avoid any possible penalties.
VAT audits / due diligence/health checks are therefore an effective measure for companies to have in place for a complete review of the VAT readiness and compliance of a business. Conducting periodical VAT audits with the help of professionals will assist companies to identify non-compliances, ensure accuracy of the VAT returns submitted and preparing for the eventual tax audits to be conducted by the FTA.
This is where we at JAXA Chartered Accountants, with experienced professionals who cater to a large base of clientele on their VAT requirements such as implementation, VAT reviews, and audits, VAT return submissions, etc, can assist your company in getting prepared for an audit by the FTA.
How can VAT Audit Services provided by JAXA help your Company
There are different ways in which VAT Audit Services can help increase the profitability of your company. These are:
Ensure VAT Compliance
The audit will facilitate a review of previously reported VAT returns with the intention of identifying any errors, thereby avoiding the risk of non-compliances being found by the Tax Authority itself, which can result in higher penalties for companies. Identification of errors or non-compliances at an earlier stage is essential as it allows companies to take appropriate corrective measures (such as a Voluntary Disclosure scheme where applicable) which can save the company from a higher penalty burden in the eventuality of an official tax audit by the Authority.
Facilitates Cost Saving
Due diligence checks will decrease the risk of inadvertent double payment of VAT, incorrect VAT being charged by the suppliers, etc, and further assist in reducing exposure to penalties from the Tax Authority.
Helps Prepare for Future
Businesses will be prepared to face official tax audits by having all the required details ready on hand and avoid errors that may happen due to last-minute hastiness.
Support the Economy of the Country
As compliance is thoroughly examined, the chances of fraud to be conducted by the business are greatly reduced.
How can JAXA Chartered Accountants help you?
- Client Approaches JAXA – Company Data is provided.
- JAXA Understands the Business – The information provided by the company is analyzed.
- Vat Audit Report – JAXA will generate a VAT Audit Report which will provide an idea of the present condition of the VAT Filing.
- Review of the Audit Report – It is checked that all the information is in order and the business complies with all the rules and regulations of the jurisdiction.
- Accurate analysis of the business and its activities
- A dedicated team of experts
- Compliant with International Financial Reporting Standards (IFRS)
- Vast experience from various sectors in various companies
How Can JAXA Help Your Business
VAT Audit is a very important service that needs to be implemented by each and every company due to its various advantages. The VAT Audit should be conducted every time a company decides to file for VAT. The experts at JAXA Chartered Accountants will understand your business and accordingly provide a solution to the company. For any more assistance about VAT Audit Services in the UAE feel free to Contact Us.
There are many other services that will help you and your business to grow further. These services include the following:
Frequently Asked Questions (FAQs)
What is 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/Health Check?
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 accuracy of adherence to the VAT Laws in UAE. This further helps to ensure readiness to provide required information to the Tax Authorities as and when it is demanded by the Authority.
Which entities need to prepare for VAT Audit?
It is advisable for all companies that are VAT registered in the UAE to have periodical audits/health checks done by external consultants in a professional manner 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. these benefits are 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.
Apart from this, there are many other benefits which will
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.
For any more details and information about VAT Audit Services, you can Contact Us. We will provide you with in-depth information and other useful background information.