Tax Audit is verification of tax liability by the Federal Tax Authority (FTA) to verify whether the tax payable is settled within the due date and whether such liabilities are properly calculated in accordance with the VAT law provisions.
How can we support you?
Being VAT advisors, we perform tax audits of our clients to evaluate the administrative irregularities and non-compliances before the identification of the same by FTA audit. We guide and assist our clients in complying with the tax requirements so that they can face tax audits at any time by the FTA.
We perform a VAT audit by reviewing the accounting and operational software systems. Accounting software that is capable of handling and generating below listed VAT compliant documentation and processes is mandatory to avoid any discrepancy during a tax audit:
- Tax Invoice
- Tax Credit Note
Proper Accounting on Reverse Charge Mechanism (RCM) while importing goods/services into the UAE
- Accurate recording of Output Tax and Input Tax
As part of our VAT audit, we review the calculation of Output Tax by ensuring the correct treatment of the below-listed information:
- Zero-rated supplies
- Out of scope supplies
- Exempt supplies
- Imports subject to Reverse Charge Mechanism
We perform a review of the calculation of Input Tax by ensuring that only allowable input tax credits are claimed. In case of mixed supplies (exempted and zero-rated/standard rated), we check whether the input credit is calculated as per the provisions under the law.
Our reviews also encompass the assessment of periodical VAT returns filed to FTA, and the amount of tax due is paid as per law compliant VAT return before the due date.