TAX AUDIT SERVICES

Tax Audit Services in Dubai, UAE

Tax Audit UAE - Tax Audit Services in Dubai, UAE

 

Tax Audit refers to an independent examination of books of accounts and various tax records of a tax registrant by respective authorities in order to ensure proper compliance of tax laws and curb the illicit tax practices in the economy.

Discourse on Tax audit in UAE has been a preferred topic amongst business communities in the region.

The tax laws of the UAE have given definitive rights to the authority for conducting a tax audit to protect the integrity of the tax systems.

When can the authority in the UAE instigate a Tax Audit?

The Federal Decree-Law 36 states that a tax audit can be prompted if authority feels that there is a likely tax revenue at stake or where there are administrative and compliance burdens at stake.

The law also authorizes the authority to re-audit any registrant if they receive any new information which can change the outcome of a previous audit conducted.

The law has endorsed the authority to inspect premises, any assets in the premises, or any other documents as they seem relevant to the course of the audit. The tax auditor will be given permission by the public prosecutor to enter any premise for the purpose of an audit.

Notification on Tax Audit in the UAE

Before starting a Tax Audit, the concerned auditor, as appointed by the authority shall provide a notification of tax assessment containing the information about the audit. Such notification will include the reason for tax assessment, tax summary, the tax to which such assessment relates etc.

The Federal Decree-Law also states that Tax Auditor has the right of entry to the business premises and can temporarily close the business in order to perform the VAT or Tax Audit for a period not exceeding 72 hours without prior notice if

  • FTA has enough grounds to believe that the Person subject to the Tax Audit is participating or involved in Tax Evasion.
  • FTA has enough reasons to believe that not temporarily closing the place where the Tax Audit is conducted will hinder the conduct of the Tax Audit.

Tax Audit Services in Dubai, UAE

Tax Audit UAE

Emirates Chartered Accountants Group - Leading Tax Audit Firm in Dubai, UAE.

 

Call for Consultation
Pradeep Sai | Partner
Mob: +971 556530001
Email: sai@emiratesca.com

 

 

Documents to be submitted during a Tax Audit in the UAE

During the course of tax audit in the UAE, the auditor can seek any documents as they deem fit which can include, but not limited to, the following:

  1. Records of all supplies and Imports of Goods and Services.
  2. All Tax Invoices and alternative documents related to receiving Goods or Services.
  3. All Tax Credit Notes and alternative documents received.
  4. All Tax Invoices and alternative documents issued.
  5. All Tax Credit Notes and alternative documents issued.
  6. Records of Goods and Services that have been disposed of or used for matters not related to Business, showing Taxes paid for the same.
  7. Records of Goods and Services purchased and for which the Input Tax was not deducted.
  8. Records of exported Goods and Services.
  9. Records of adjustments or corrections made to accounts or Tax Invoices.
  10. Details of Goods imported to the state along with Customs declarations and Supplier Invoices.

Penalties on Non-Compliance of Tax / VAT Regulations in the UAE.

A Tax Audit in the UAE is rather a comprehensive and holistic approach from the authority to ensure tax compliance from the registrants and to safeguard revenue streams of the Federal Government.

Various laws and regulations issued by Ministry levy severe penalties, including prison sentences and other monetary penalties if a registrant is found guilty of non-compliance.

  • The failure of the Person conducting Business to keep the required records and other information specified in the Tax Procedures Law and the Tax Law: AED 10,000 for the first time; AED  20,000 in case of repetition.
  • The submittal of an incorrect Tax Return by the Registrant: AED 1,000 for the first time; AED  2,000 in case of repetition
  • The failure of the Person conducting Business to facilitate the work of the Tax Auditor: AED 20,000 in violation of the provisions of Article 21 of the Tax Procedures Law.
  • The failure of the Taxable Person to submit a registration application within the timeframe specified in the Tax Law: AED 10,000

These violations of tax laws can also lead to imprisonment of the authorized signatory and can be considered a criminal offense.

Our role in Tax Audit in the UAE

Tax Audit in the UAE is rather unknown waters for the business communities in the region and requires utmost attention. A pre-audit review is appropriate for businesses to understand their exposure to non-compliance.

As VAT Consultants in UAE, with our expertise and knowledge in the related field after encountering practical scenarios which we face on a day to day basis, we shall extend our guidance, support, execution, and resolution on all your challenges encountered which will be based on the provisions and guidelines issued by FTA.

We have assisted efficiently a wide spectrum of clients from different industries in the UAE to manage their taxable transactions by complying with VAT laws, advising on transactions, and practically resolving the issues.

VAT Audit review will help you in understanding the causes of non-compliance and address them for the past and the future. It will help you in identifying the areas which require rectification while assuring the accuracy of taxes remitted.

Understanding the weaknesses of your tax system can help you form a better and compliant system that will get through any audit from the authorities.

For more information on Tax Audit in the UAE please contact our below representatives:

For Tax Audit Service in Abu Dhabi
Mr. Navaneeth
nav@emiratesca.com
+971 55 8892750

For Tax Audit Service in Dubai & Northern Emirates
Mr. Manu Palerichal
manu@emiratesca.com
+971 05 2828727

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Tax Audit UAE - FAQ

People usually ask

Ans: No, it is up to the authority to conduct tax audit in UAE. There has been no requirement for mandatory audit at this point.

Ans: Yes, the authority shall give you 5 days from the date of notification to submit the relevant documents as sought.

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