VAT Health Check

Brief On VAT Audit & Its Implication on Business

The Ministry of Finance has actually revealed the Introduction of a 9% government corporate tax in the UAE, efficient from the fiscal year beginning 1st June 2023. Whilst Company Tax obligation is high up on organizations’ programs and also rightly so, VAT should not be forgotten.

After introduction of barrel in UAE beginning with 1st Jan. 2018, now FTA has begun to perform VAT audit (based on legal rights under Article 11 of Closet Dec. No. 36 of 2017).

Under this sort of audit, FTA examines the obligation of a taxed entity to accumulate as well as pay tax in time, keeping all essential papers and also keeping account books as much as date as called for under the law.

As per article 12 of Cabinet Dec. No. 36 of 2017, the authority has legal rights to enter into business premises and inspect premises, documents, assets & accounting system.
FTA has right to summon any entity for VAT audit (irrespective of size, nature of business and even without specifying reason).
FTA will submit VAT Audit report within 10 working days disclosing all noncompliances and corresponding penalties.

How NUFCA Can Help?

Get your mock VAT audit done, before any anticipated VAT Audit by FTA as per below scope:

Reconciliation between “VAT returns filed” & “VAT as per Books of Accounts”, updating/implementing accounting software effectively in compliance with VAT law.
Review Maintenance of Documentation & Records considering practical aspects / difficulties. (Including formats of tax invoice and tax credit note issued/received),
Ensuring 100% recovery of Input VAT as per law,
Exploring possibilities of VAT Refund,
Review Recovery of VAT on Bad Debts, if applicable,
Review of any updation pending to be submitted to FTA as required under the VAT law.
Training to Accounts staff for ensuring compliances of VAT. We will provide comprehensive VAT Audit Report listing all non-compliances, corresponding penalties applicable along with suggestions for compliance and improvements.

What To Do Next

Contact Us: Our devoted seasoned specialists are readily available to clarify & offer effective services to make your organization well prepared prior to any awaited barrel Audit is carried out by FTA, lowering the threat of any charge.