VAT Audit Service
A VAT audit is a statutory examination by the FTA to ascertain whether businesses are complying with the VAT laws in the UAE. The audit entails an in-depth evaluation of the company’s VAT records, financial statements, and returns to determine the accuracy of VAT reporting and tax payments.
Why is VAT Audit Important?
The VAT audit will ensure that:
- Charge and collect VAT on taxable supplies correctly.
- Claim input VAT on purchases accurately.
- File VAT returns on time and as per the VAT provisions. Non-compliance might lead to fines, penalties, and even further legal action.
Key Reasons for a VAT Audit
The FTA may conduct a VAT audit due to the following reasons:
- Random Selection: Some businesses might be selected for a VAT audit as part of regular checks by the FTA.
- Discrepancies in the VAT Returns: If the FTA discovers inconsistencies or significant errors in your VAT returns, this may prompt the audit procedure.
- Delayed Filing and Failure to Pay: Regularly filing VAT late or making delayed VAT payments may raise red flags with the FTA.
- Excessive Refund Claims: Exorbitant or consistent VAT refund claims can trigger an audit.
Key Services We Offer
- Pre-Audit Preparations:
- Pre-Audit VAT Record and Financial Statement Reconciliation: We validate records and financial statements to ensure that all documentation is correct and complete before an audit.
- Document Management:
- We assist in the collection and maintenance of all necessary documents to meet the FTA’s standards.
- Audit Support:
- We support you throughout the process, answering FTA queries, liaising with auditors, and handling follow-up requirements.
- Post-Audit Compliance:
- If discrepancies are found, we help correct errors, settle any arrears, and ensure improved VAT practices to prevent future issues.
Common Problems During VAT Audit
- Poor Bookkeeping: Organizations that cannot produce proper VAT transaction records will face challenges during a VAT audit.
- Tardiness or Mistakes in VAT Return Filing: Delayed or incorrect VAT returns attract additional charges and invite closer scrutiny from the FTA.
- Complexity of VAT Treatment: Misunderstanding specific transactions, such as imports, exports, or zero-rated supplies, can lead to audit reporting mistakes.
Why Use Primetax for VAT Audit Service?
- Experienced Professionals: Our VAT experts are well-versed in UAE VAT law, ensuring a smooth audit process.
- Thorough Check: We meticulously review your VAT records for potential mistakes and compliance before presenting them to the FTA audit.
- Audit Expertise: We have consulted with FTA auditors and assisted in resolving audit-related issues to avoid penalties for your business.
FAQs:
- How often is the FTA likely to carry out VAT audits?
- What will happen during the course of the audit if there are differences?
- What do I need to prepare before a VAT audit?
To seek professional assistance while preparing for and managing VAT audits, contact Primetax today!
