+971554413566 +971 4 4542366
A VAT (Value-Added Tax) audit is a process that assesses the compliance of a company or taxable person with VAT legislation and regulations. It is a comprehensive investigation into a taxable entity’s business operations and how it manages its VAT obligations. The main purpose of a VAT audit is to verify if the company has correctly reported and paid its VAT obligations.The scope of a VAT audit can vary, ranging from checking what is stated on invoices to an in-depth verification of the company’s account statements, analysis of invoicing, and goods.
VAT audits are essential for companies to ensure their VAT compliance and protect themselves in case of an audit. A detailed analysis conducted by VAT experts can highlight key danger points, and a complete file with recommendations is delivered at the end of the study.
A VAT audit in UAE is a process carried out by the Federal Tax Authority (FTA) to examine the commercial records or any information or data of the taxable persons. During the audit, tax auditors from the FTA will examine tax returns and any necessary details to determine the tax compliance of the companies that are required to pay taxes. The purpose of the VAT audit is to make sure that the VAT returns and VAT refunds submitted by the taxpayer are accurate and comply with the UAE tax laws. If a company is selected for a VAT audit, it is important to be prepared for the audit. The company should ensure that all the necessary records and documents are maintained and organized properly. The following are some of the records that should be maintained for a VAT audit in UAE.
Below are the key aspects of VAT Audit:
How to be ready for the VAT audit?
It is also recommended to seek assistance from a professional auditing firm to ensure that the company is fully prepared for the VAT audit and to avoid any penalties for non-compliance.
VAT Audit is not mandatory in UAE however it is recommended that businesses have the best practices of doing VAT Audit for accuracy of information and systems used.
Licensed and registered Tax Auditors are responsible in conducting VAT Audit in UAE.
Time frame for completing VAT Audit work ranges from 10-15 working days and depends on the volume of work and business industry.
Federal Tax Authority is the governing body conducting VAT Audit to businesses in UAE.
Generally companies should keep a record of supporting documents relating to VAT Return Filing for 5 years, however for Real Estate company they should maintain the relevant VAT documents for 7 years.
Auditing is an inseparable part of a business, and every business is required to conduct an audit to evaluate the company’s financial health.. …
Flyingcolour® Tax Consultant and J N J Auditing LLC provide Accounting and Bookkeeping services, Tax related services, Auditing, Economic Substance Regulation (ESR) services, Anti-money Laundering compliance services, Tax Residency Certificate Assistance, Payroll Services, Excise Tax services, other compliance, and CFO services, etc. through our team of experienced professionals. We cover comprehensive and customized packages tailored to your specific requirements.
---In which jurisdiction the company is established*---MainlandFree ZoneForeign
---Select Legal Type*---Sole EstablishmentCivil companyLimited Liability CompanyOthers
---Select Business Activity*---TradingServicesManufacturingPassive Income generating Company ( Ex:- Holding company )FreelancerMixed business activities
---Select Client Base*---LocalFZInternationalMixed