A VAT audit is an investigation into the financial data and records of UAE taxpayers to determine the accuracy of their VAT liability and compliance with relevant UAE VAT laws. The Federal Tax Authority (FTA) conducts the audit process to monitor the taxpayer’s VAT liability and ensure their adherence to UAE regulations or not.
To ensure compliance with UAE VAT laws, it is important to undergo VAT Audit Services in Dubai. These services enable you to assess your internal tax procedures in line with the UAE’s VAT regulations. By identifying areas of non-compliance and rectifying them within the framework of the law, you can avoid penalties and other legal consequences.
It is important to be adequately prepared for a VAT audit conducted by the Federal Tax Authority (FTA) to ensure smooth and hassle-free compliance. Let expert VAT Audit Consultants Dubai at Horizon help you with this.
Taxpayers in the UAE undergoing a VAT audit will receive a notification from the Federal Tax Authority (FTA) at least five days prior to the audit. To ensure a smooth and successful audit process, taxpayers are required to keep all VAT return documents and supporting evidence, and must have employees responsible for accounting and taxation records present during the audit.
These records include:
The tax auditors require the mentioned documents to conduct their assessment. They scrutinize payments, receipts, and all documentation related to VAT transactions for any discrepancies. Suspicious information or any missing data is noted down and further scrutinized for irregularities.
The Federal Tax Authority (FTA) does not have a specific month or date for conducting VAT audits in the UAE. The FTA can conduct VAT audits of a taxpayer’s liability at any time based on its discretion. Delayed VAT return submissions, incorrect returns, tax evasion cases, and non-compliance issues may also increase the chances of being audited by the FTA.
The frequency of VAT audits conducted by the FTA is at their discretion, and it can vary from multiple times a year to just once. Typically, taxpayers receive a notification from the FTA at least five days before the audit. However, if there are any suspicions of non-compliance or tax evasion, the FTA may conduct the audit without prior notification.
During a VAT audit, the FTA examines the following areas:
Horizon Biz Consultancy has been at the forefront of VAT consulting since its implementation in the UAE, and we take great pride in being a reliable provider. Our dedicated team of tax experts with over 60 years of diverse experience lends us the right resources and expertise to deliver exceptional VAT audit services in Dubai and the larger UAE.
At Horizon Biz Consultancy, we understand that VAT audits are an essential aspect of ensuring compliance with UAE VAT laws. As a leading provider of VAT audit services in the UAE, we have a team of experienced tax experts who can help you identify areas of non-compliance and rectify them within the framework of UAE laws.
We work closely with the Federal Tax Authority (FTA) throughout the audit process, providing them with the relevant documents, records, data, and information about finances, stock inventory, and assets for a detailed examination. Our VAT experts also prepare a VAT audit checklist to ensure a thorough review of your compliance with UAE VAT law.
We have successfully represented clients from various industry verticals and have the right resources and expertise to provide outstanding VAT audit services. With our assistance, you can be adequately prepared to assess your compliance before the FTA conducts a VAT audit.
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VAT audits usually get triggered by inaccurate filings, delayed payments, refund claims, related party transactions, or random selections – especially in the first years of VAT implementation.
Key documents include VAT returns, sales/purchase registers, tax invoices, bank statements, financial records, inventory records, tax policies, and internal audit reports.
We represent clients end-to-end – gathering documents, liaising with tax authorities, providing clarifications, appearing in-person if required, and helping arrive at best case resolution.
Our team of qualified tax experts with extensive experience in VAT assessments and audits directly handles the entire audit support process for clients.
Yes tax penalties can range from AED 5,000 upwards depending on the nature and frequency of the violation. Our priority is to help mitigate penalties.
We obtain audit closure letters, file adjustments/returns if needed, assist with implementing recommendations, and consult on dispute resolution if required.
