VAT
VAT Audit Service in UAE
We help our clients with accurate and reliable auditing services to be compatible with the UAE VAT law
VAT Audit in the UAE
FTA conducts tax audits to examine the commercial records of the taxpayer and assess if it complies with VAT regulations like VAT Audit in Dubai. A tax audit verifies VAT liability by cross-checking the records maintained by the taxpayer and can be carried out at the taxpayer’s business premises as a ‘field tax audit’ or in the FTA office as well.
All registered businesses are subjected to the premises of VAT. The taxpayer assesses the output VAT and input VAT based on the supplies done during the period and reports it to FTA through VAT returns. As VAT is self-assessed by the business entity, FTA ensures the declaration is correct by the procedure of tax audit.
If FTA finds any discrepancies resulting in underpayment or overclaiming the input VAT deduction, a notice in the form of an assessment asking the taxpayer to pay the VAT along with penalties will be issued.
Timeline of VAT Audit
All registered businesses are not subjected to VAT audit but the FTA selects businesses that are required to be audited. The decision to carry out VAT audit is completely up to FTA and there is no fixed frequency for the audits to happen. Some factors are considered in selecting the business for VAT audit in Dubai.
- Size of the company and complexity of business
- The compliance history of the business
- Tendency to late submit VAT returns
- Instances of incorrect filling of documents
Process of VAT Audit
The FTA will notify the taxpayer of the audit 5 business days in advance. But in cases where a prior notification would hinder the audit process, FTA will not be providing notice of VAT.
Taxpayers must keep all VAT returns documents and supporting evidence during the audit process. Also, the relevant employees responsible for accounting and taxation records are expected to be present to facilitate a smooth audit process. The records to be submitted include:
- Supply invoices and receipts
- Tax invoices and documents involved
- All tax credit notes and documents involved
- Document proofs of all imports and exports
- Customs declarations
- Non-deducted input tax records
The taxpayer has to make the office premises accessible for the audit and provide the required assistance.
Upon completion of the VAT audit in the UAE, FTA will communicate the results with the taxable person. If the conclusion of the audit leads to the determination of non-compliance with the formal requirements, a tax assessment will be issued to the business.
MAATS in VAT Audit service
MAATS is the most reliable accounting firm in UAE to supply time-to-time assistance throughout the VAT audit procedure. We have got a team rich with the required experience in the field and we are equipped to offer comprehensive service and Experts VAT audits in Dubai. We coordinate with business and tax authorities to facilitate the audit process and furnish all information, documents and records for a successful examination. You can trust our expert team with the process.
Frequently Asked Questions
A VAT audit can help identify potential tax savings, avoid errors in VAT returns, ensure accurate record-keeping, and reduce the risk of fines.
If errors are found, businesses may need to correct VAT returns and pay any underpaid taxes, plus any applicable penalties.
VAT audits are mandatory for businesses that meet the FTA’s criteria, including those with annual taxable supplies over AED 375,000.
While you can review your own VAT records, it is advisable to hire a professional VAT auditor to ensure compliance and accuracy.
The cost of a VAT audit varies depending on the complexity of your business, but it’s important to view it as an investment in compliance.
Yes, VAT audits are designed to detect discrepancies, errors, or potential fraudulent activities that may affect VAT reporting.
Cooperate fully with the FTA’s audit team, provide the required documentation, and consider hiring a professional VAT consultant to guide you.
A VAT auditor reviews your financial records, checks VAT returns for accuracy, and ensures compliance with UAE VAT laws.
To avoid risks, maintain accurate records, submit timely VAT returns, and work with a VAT consultant to ensure compliance.
A VAT audit is a comprehensive review of all financial records, while a VAT inspection is typically a targeted check of specific transactions or documents.
Yes, a VAT audit can identify overpaid VAT, which can be refunded or adjusted in future tax returns.