VAT Audit Services UAE

What VAT Auditors in the UAE can do and can’t do?

Tax inspectors have the following rights and powers, according to Chapter 2 of Federal Decree-Law No. 7 of 2017 on Tax Processes and Title 8 of Government Decision No. 36 of 2017 on the Cabinet’s Regulation of Federal Law No. 7 of 2017 on Tax Procedures:

The right to enter the property

Article 18 of the UAE’s Tax Procedures Law says that tax auditors will go anywhere the person being audited does business, stores goods, or keeps records. If the auditor needs to, he or she will temporarily shut down the place in question for up to 72 hours to do the audit without warning anyone. This will happen if tax evasion is suspected, or anything could get in the way of the tax audit.

The right to get and take property

According to Article 18 of the Tax Procedures Law, a tax inspector has every right to see the original records or copies of the documents. The UAE tax inspector is allowed to take samples of stock, equipment, or other assets from the business location of the person being audited. The auditor will take examples of supplies, tools, or help if necessary.

Right to check out new data

Tax auditors will look into any new information during the tax audit that could change how the audit turns out. But this only happens if the steps are in line with the Tax Procedures Law and the Tax Law’s Executive Regulations.

Major Things Checked During a VAT Audit in the UAE

Businesses that have to pay taxes in the UAE have to know what the FTA doesn’t notice when they do a tax check. Here are some of the things that are looked at during a UAE tax audit:

Software and System for Accounting

Taxable businesses must use the right accounting tools to make sure they follow the UAE VAT Law. Companies that file VAT reports in the UAE will make fewer mistakes and differences using the right accounting software. Article 2 of the Tax Procedures Law says that the right accounting software should create the required reports and records. Dubai’s best VAT consulting companies help businesses get the best accounting software up and running.

A look at the output tax

Tax auditors in the UAE also make sure that zero-rated, exempted, and standard-rated taxes are calculated according to UAE tax rules. They also make sure that average tax rates, like 5% or 0%, are used on taxable goods. And things that qualify for a zero-tax rate are only charged zero tax when there is official and business proof. They also look at the records of goods brought into the UAE to see if the reverse charge procedure was followed.

Look at the input tax.

During a tax audit in the UAE, the input tax is looked at to see if purchases and costs will be used to figure the tax. The UAE tax auditors make sure that input tax credits will be taken for supplies that are taxed at 5% or 0%, but not for supplies that are exempt or that have a particular restriction, like entertainment services. At this point, the tax inspector checks to see if the taxable person has the proper Tax Invoice with their TRN to make sure they will get input tax credits and other benefits. In Dubai, tax brokers help businesses prepare for tax audits by giving them the necessary information.

Look at the VAT returns

The tax auditor will compare the submitted VAT returns with the accounting records to make sure that both the documents and the VAT returns are complete. Tax Consultants in UAE must check the filed VAT report before sending it to the federal tax authority to make sure it follows the law. They look over all the files to make sure they meet the requirements of the tax office. Talk to the best VAT consulting firms in Dubai to make sure you meet the FTA’s standards during the tax audit.

Notice of the Results of the VAT Audit

Article 17 of the Tax Procedures Law says that the FTA will tell the companies that were subject to a Tax Audit the final decision of the Tax Audit within ten business days of the end of the audit. Businesses audited for taxes in the UAE will see or get the papers and data that the FTA used to determine how much tax is owed. Article 17 of the Tax Procedures Law says that this is a right of companies.

Hire only FTA-registered tax agents

In the UAE, the FTA does tax audits to make sure that taxpayers are following the VAT Law, Excise Tax Law, and other tax rules. Since the FTA is responsible for the tax audit, companies need help from registered tax agents in Dubai, like Highmark Chartered Accountants, to prepare for it. With a team of FTA-registered Tax Agents, Highmark is one of Dubai’s most well-known VAT consulting companies. Highmark VAT auditors help companies by giving them help before, after, and during the tax audit. Help from Highmark runs from advice on transactions to help with paperwork. Before and after the audit, the tax agents at Highmark VAT auditors in Dubai point out the risks, places of risk, and non-compliance. Highmark VAT auditors also tell businesses what to do after the FTA does a tax check.