Parsh VAT Audit Assistance in UAE

In UAE, the government conducts a VAT audit to verify whether a business is following VAT laws or not. FTA checks VAT returns and VAT refunds submitted by a taxpayer through a VAT audit. FTA conducts a VAT audit to check if all the liabilities and tax dues are cleared and paid to the government within the given time frame.

Process of VAT Audit

FTA has appointed officials to perform tax audits. They examine tax returns and any necessary detail. As per the law, FTA can conduct a tax audit at any time for any reason. It is a mandatory requirement for a business, its legal advisors and tax agents to offer help to the FTA tax auditors. In case there are any questionable facts or gaps found during the audit, auditors may request a re-audit. Given below are some items that are examined and verified during a tax audit in UAE.

  • VAT Returns - VAT returns are evaluated and compared to the accounting records.
  • Input Tax - Input tax is evaluated to see if non-recovered tax or blocked inputs are claimed or not.
  • Output Tax - Output tax is also checked to see if it is computed correctly as per the standard tax rates or not
  • Accounting System and Software - The auditors ensure that the latest accounting software is being used and there are no mistakes in accounting and computing VAT returns.

To understand all the legal requirements and comply with the tax laws, a business should hire a professional tax consultation service to take care of all of the above components before an audit is done.

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Documents Required for VAT Audit

A taxable business is required to provide certain documents to facilitate tax audits. It is a mandatory requirement to present the following documents to the tax auditor.

  • All credit notes and documentation
  • All tax invoices and documentation
  • Record of purchase of goods and services for which no input tax has been deducted
  • Export records of goods and services
  • Tax invoices that have been modified or corrected
  • Details of imported goods, custom declarations and invoices from suppliers
  • Records of all supplies and imports
  • Tax invoices and other documents related to the receipt of goods and services

Notifications of the Tax Audit Results

Once the audit is complete, the FTA notifies the audited entity about the final result within 10 business days. An audited entity or business can view or collect the documents and data on which the audit assessment was based.

Why Hire Parsh Tax Consultants?

A tax audit is done to ensure that businesses are complying with tax regulations and VAT laws. As the FTA conducts a tax audit, a business needs an expert to guide and prepare them for the audit. Parsh is a reputed consultation firm that provides its clients with pre-audit and post-audit support and also supports them during the audit. Our services include transaction advisory and documentation support. We highlight the area of non-compliance so that corrective measures can be taken and we also advise on actions to be taken after the audit. So if you need audit assistance, contact us today.

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