What is VAT Audit?
A VAT audit involves a thorough examination of the financial records and data of taxpayers in the UAE. During a VAT audit, the Federal Tax Authority (FTA) assesses the accuracy of the taxpayer’s VAT liability and evaluates their compliance with UAE VAT regulations. This process ensures that taxpayers adhere to the relevant VAT laws and accurately report their VAT obligations.
Why is VAT Audit Essential?
Understanding VAT refunds in Dubai is crucial for ensuring compliance with UAE VAT laws. By familiarizing yourself with the VAT refund process, you can better grasp your internal tax procedures and their alignment with UAE VAT regulations.
The initial step involves identifying any areas of non-compliance and addressing them within the framework of UAE laws. It’s important to be well-prepared to evaluate your compliance proactively, before the Federal Tax Authority (FTA) conducts a VAT audit.
FTA Tax Audit Process
Before conducting a VAT audit, the Federal Tax Authority (FTA) sends a notification to taxpayers at least five days in advance. Taxpayers should ensure that all VAT return documents and supporting evidence are readily available. Additionally, employees responsible for accounting and tax records should be present to assist with the audit process. The required records include:
- Supply invoices as well as receipts
- Tax invoices from suppliers and related documents
- Tax credit notes
- Documents showing the proof of imports and exports
- Customs declarations
- Non-deducted input tax records
Tax auditors require these documents to conduct a thorough assessment. They scrutinize discrepancies in payments, receipts, and documentation related to VAT-specific transactions. Any suspicious information or missing data is identified, listed, and reviewed for potential irregularities.
We have been a leading provider of VAT audit services since VAT was introduced. With a dedicated team of tax experts and over 35 years of diverse experience, we possess the resources and expertise to deliver exceptional VAT audit services in the Emirates.
Our services include coordinating with tax authorities throughout the audit process and providing auditors with all necessary documents, records, data, and information related to finances, stock inventory, and assets for a comprehensive examination. At NR Doshi, our VAT experts prepare a meticulous VAT audit checklist to ensure thorough compliance with UAE VAT laws. Additionally, we have a proven track record of successfully representing clients across various industry sectors, ensuring adherence to FTA regulations.
