UAE Tax Audit is a procedure by which the Federal Tax Authority inspects commercial records and any other information related to a Person Conducting Business. The FTA conducts tax audits in UAE to ensure that the government can assess whether a taxable entity has met the requirements and adhered to the VAT Laws.
The FTA conducts a tax audit to determine if taxable individuals have paid all liabilities. All tax due is collected by the FTA and given to the government within the timeframe. The Tax Procedures Law Article 17 allows the FTA to conduct a tax audit at the FTA's office, the business premises, or any other place the person does business (or places where records are kept or goods are stored).
What Is VAT? Tax Auditing In Dubai, UAE
It is a formal examination of the VAT Ledgers, Purchases, and Sales Ledgers by approved internal audit services Dubai agents. Zero-rated sales, Exempt Sales, and inspection of Purchase Tax Invoices. Jan-18 to March-18 This allows all taxes to be collected and cleared within the timeframe.
Companies in Dubai and UAE must file VAT returns. They should be properly prepared and recorded with the correct values in the appropriate boxes. internal audit service UAE agents can assist you with this and complete it within the time frame.
The most important thing is that the tax due be paid on or before the due date. According to FTA guidelines, an approved tax agent will help ensure that your entity is VAT compliant. This means that all transactions are valid and legal, and companies can run a safe and secure business.
Read More: Complete Guide on Tax Audits in UAE
How Companies the UAE Tax Audit
When the FTA requests tax audits, tax consultants in Dubai can help businesses get organized. The professional guidance of consultants can help businesses feel more confident to face the UAE tax audit. Below are the top tips for preparing businesses to face tax audits in UAE.
System Review
The tax auditors will examine all tax-related transactions. Businesses need to ensure there are no inconsistencies in records. Businesses can have their systems reviewed by tax experts in Dubai, UAE, to make sure that transactions are properly recorded. Businesses must ensure that their accounting software complies with VAT accounting requirements.
Review of Calculations Tax
Businesses must focus on calculating input and output tax to ensure compliance with UAE VAT laws. With sufficient documentation support, many goods and services exempt from or subject to the standard UAE tax rate of 5% should be treated accordingly. GVC can help you maintain your compliance with the UAE VAT Law.
Examining VAT Returns
Businesses that are VAT registered must file their VAT return online via the FTA portal. Online submission of the VAT return involves submitting data such as sales, purchases, output VAT, and input VAT.
In the FTA portal, fill in the boxes for the VAT return form. The best VAT consultants in Dubai can help businesses ensure that returns are filed correctly. Tax consultants in Dubai are available to assist businesses in recording the correct values and filing the necessary information within the specified timeframe.
What Records UAE Companies Keep for Tax Records
Federal Decree-Law Article (78) states that a registered person must keep the following records in order to make them available to FTA when requested:
- Keep records of all imports and supplies
- Documents related to receipt of goods & services, including tax invoices
- All tax credit notes received and all documents
- All tax invoices and other documents
- Record of goods and services disposed of in connection with business matters and records showing taxes paid to the same
- Record of goods and services purchased and not subject to the Input Tax
- Record of export goods and services
- Keep records of any adjustments or corrections made on accounts or Tax Invoices.
- Information about goods imported, along with Customs declarations or Supplier Invoices
This list is not complete, and the FTA might require additional documents. To ensure compliance with tax laws, consult the top tax agents in Dubai.
Why choose Farahat & Co as Your VAT Consultants in the UAE
Professionals with extensive experience can provide complete support and guidance regarding VAT. High-quality work and prompt support. Analyze, find, and solve problems. UAE audit firms offer bespoke internal audit services for different sectors and industries. Our team is highly skilled and talented and has a wealth of experience in tax matters.
So, if you are an individual or company based out of Dubai and UAE and would like professional assistance in handling your TAX audit, then you don’t need to worry. We at, an audit firm in Dubai would be glad to offer our professional assistance. To know more about our services, please get in touch with us through call or email. You can also visit our website for more details.
Read More: 6 Things to Remember to Avoid a Business Tax Audit
