TAX Audit or VAT Audit in UAE | What Are 11 Records to be Maintained for a VAT Audit in UAE?

Tax Service in UAE

VAT Audit in UAE

Tax Audit in UAE

It’s almost a year since this word, ‘VAT Audit’ or Tax Audit in UAE, has found its way into the common world of the business communities in UAE. By February 28th, 2019, it is expected that at least 90% of the registrants will complete their first tax year. A tax year refers to the 12-month period covered by tax returns, either monthly or quarterly as Federal Tax Authority (FTA) has stipulated at the time of registration.

VAT Consultants in UAE have been providing Tax Services for VAT Registered Businesses since UAE started with Tax. For Emirates Chartered Accountants Group ECA Taxation is the company registered under FTA as a Tax Agent providing a wide array of VAT Consultancy Services in the UAE So,

  • What is a Tax Audit or VAT Audit?
  • What should an organization resolve to prepare for VAT Audit?
  • Why is Vat Consultancy Service Required?
  • Why you should hire VAT Consultants in UAE?

What Is a Tax Audit?

Tax audit is a formal examination conducted by the FTA to verify information or uncover fraud and inaccurate tax returns. The FTA can select tax returns to examine both randomly and intentionally. The Tax Procedures Law (Federal Decree-Law no. 7), issued by the Ministry of Finance defines Tax Audit as a procedure undertaken by the Authority to inspect the commercial records or any information or data related to a Person conducting Business.

FTA may perform the Tax Audit at its office or the place of business of the Person subject to the Tax Audit or any other place where such Person conducts Business, stores goods or keeps records.

What is the Role of a VAT or Tax Auditor during a Tax Audit?

Tax procedures law remarks that the 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.

During a Tax Audit, the authority will have the right to obtain any records (original or copy), verify stock or assets of the business where the audit is proceeding or even seize them for the purposes of audit. It is the duty of the Person subject to a Tax Audit, his Tax Agent or Legal Representative shall facilitate and offer assistance to the Tax Auditor to enable him to perform his duties.

What are the Records to be Maintained for a Tax Audit?

As per Article (78) of  Federal Decree-Law states that a registrant shall maintain the following records to be made available to FTA when asked:

  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.

This list is not exhaustive one but just superficial, FTA can demand any further document as they may deem fit during the course of an audit to ascertain the tax obligations.

What is The Importance of Tax Audit Review in Your Organization?

Federal Tax Authority, the ultimate constitution responsible for collection and management of federal taxes is renowned inefficiently deterring non-compliance from the part of taxpayers. 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.

To avoid falling under the prospect of non-compliance of VAT, it is always better to conduct a Tax Audit review or a VAT health check-up in your organization. A VAT Audit review targets in finding out disparities in your organizational tax policies and appropriate procedures as per UAE tax laws. It is prudent to say that Tax Audit review is rather a necessity than an option since it’ll reinforce your organization to face a VAT Audit.

Tax  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 actually remitted. FTA has set various options for taxpayers to rectify their mistakes before undertaking an assessment such as filing a Voluntary Disclosure or a Reconsideration form as the case requires.

What is VAT Consultancy Service?

VAT Consultancy Service is one of the services that we provide as a VAT Consultant in UAE. Our Service is to provide support and guidance to the registered individuals and businesses for VAT in UAE as per the updates and guidance issued by the FTA.

As your VAT consultant in UAE, we will advise and analyze the impact of VAT in your business and guide you to comply with the VAT law. At times of challenges being faced by business we as your VAT Consultant in UAE, can give proper and apt guidance on the process and administrative requirements are every registered individual and businesses must follow.

Why is VAT Consultancy Service Required?

It is very important for the registered individuals and businesses in the UAE to comply with UAE VAT laws and regulations issued by FTA and take necessary action to comply with VAT in the UAE. On a regular business, it might be difficult to look into every VAT compliance requirement and also to ensure their completeness too.

At this juncture 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 the all your challenges encountered which will be based on the provisions and guidelines issued by FTA. As VAT Consultants in UAE, we will have a ready-made cum tailor-made tax solutions for businesses in the UAE.

How can Emirates Chartered Accountants as your VAT Consultant in UAE help prepare for Tax Audit?         
  • We, Emirates Chartered Accountants Group have been in the tax forefront as VAT Consultants in the UAE since inception.
  • We’ve 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.
  • Our Tax Experts ensure that the businesses comply with the rules and regulations so that there are no overpayments made and Input Credit is taken correctly on time.
  • We are also a registered tax agent with FTA as ECA Taxation Procedures Follow Up LLC who can be appointed on behalf of another person to represent him before the Authority and assist him in the fulfilment of his Tax obligations and the exercise his associated tax rights.
Why Choose Emirates Chartered Accountants as VAT Consultant in the UAE?
  • Review, Identify and Solve issues
  • Full-time Guidance and Support for VAT by well-experienced professionals.
  • Hard Work compiled with Smart Work
  • Quality Work Assured with Timely Support
  • Happy Clienteles

Emirates Chartered Accountants Group provides inclusive  TAX Services for all business sectors in the UAE – Dubai, Abu Dhabi, Sharjah, Ajman, & RAK. We are also happy to inform you that we have started our operation in the Kingdom of Bahrain as well.  The Tax Team in Emirates Chartered Accountants Group engages professionals with relevant TAX experience in different sectors.

Looking for TAX Services in the UAE?

We provide:

For Tax Services in Dubai:

Mr. Pradeep Sai 
+971 – 556530001

For Tax Services in Abu Dhabi:

Mr. Navaneeth 
+971 – 558892750

For Tax Services in Northern Emirate (Sharjah, Ajman, RAK, Fujairah)

Mr. Praveen
+971 – 508873115

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