In the United Arab Emirates, diverse tax laws had been imposed on corporations and agencies should follow these tax legal guidelines. It is the responsibility of the Federal Tax Authority (FTA) to ensure that organizations are paying their taxes efficiently and hold an eye on noncompliance and fraud subjects. For this reason, FTA conducts tax audits in UAE for one of a kind forms of taxes i.E., VAT audit, excise tax audit, and so on. Read ahead to study extra approximately tax audit in UAE;
Table of Contents
What is a Tax Audit?
- The Federal Tax Authority’s prison dealers perform a tax audit in the UAE. The purpose of a tax audit is to assess tax compliance as well as verify that payable tax is nicely calculated and filed.
- Companies should stay organized all of the time for a tax audit performed by using the FTA. Tax audits aim to affirm tax liability with the aid of comparing the business’s economic and accounting statistics, as well as VAT return filing records.
- The tax audit is scheduled to take area in the workplace of the business enterprise in query or on the FTA’s favored region. The FTA shall alert the business no less than five running days in beforehand. The FTA undertakes tax audits all through formal work hours.
- Every commercial enterprise eligible for VAT or excise tax won’t be audited, however, the FTA arbitrarily selects the organizations who must be audited. The choice of whether or now not to audit a commercial enterprise will ultimately be made by the FTA.
What forces FTA to Conduct a Tax Audit in UAE?
The FTA makes the final choice on which businesses are subject to a tax audit, however, a number of variables may be measured when considering a company for a tax audit, for instance;
- Huge-scale companies attract FTA’s attention.
- A past with late filing of taxes can make FTA consider an audit.
- The incidence of inaccurate filing of tax will obviously cause FTA to initiate an audit.
- The complex nature of a business can also make FTA conduct an audit.
VAT Audit in UAE
When FTA executes an audit for the purposes of assessing the liability of a business for Value Added Tax, it is called a VAT audit. For the cause of VAT audit, the FTA requires groups to submit required data and documents via on-line accounting software program.
Elements of FTA VAT Audit File
The elements of the FTA audit file include;
- Company information: tax agent name, tax agency name, tax registration number, taxable person name.
- Master files: customer file, supplier file.
- Source documents: product file, general ledger, payments, invoices issued, credit notes, etc.
| Information | Additional Information |
| Company Information | Tax agent name, tax agency name, tax registration number, taxable person name |
| Master Files | Customer file, supplier file |
| Source Documents | Product file, general ledger, payments, invoices issued, credit notes |
Documents Required for VAT Audit
The following documents and records must be kept by businesses to ease the process of VAT audit;
- Records of;
- Total imports of goods and services
- Total supplies of goods and services
- Invoices of received goods and services
- Issued invoices for goods and services
- Received credit notes
- Issued credit notes
- Unused, thrown goods, or goods used for purposes other than business.
- Exported services and goods
- Corrected versions of invoices
- Corrected versions of accounts
- Payable tax on supplies
- Payable tax after corrections
- Recoverable tax on imports and supplies before corrections
- Recoverable tax on imports and supplies after corrections
Excise Tax Audit in UAE
When FTA executes an audit for the purposes of assessing the liability of a commercial enterprise for Excise Tax, it’s miles known as an excise tax audit. For the cause of excise tax audit, the FTA calls for corporations to submit required statistics and files through on line accounting software program.
Elements of FTA Excise Tax Audit File
The elements of the FTA excise tax audit file include;
- Company information: tax agent name, tax agency name, tax registration number, taxable person name.
- Master files: customer file, supplier file.
- Source documents: product file, general ledger, payments, invoices issued, credit notes, stock file, stock movement.
| Information | Additional Information |
| Company Information | Tax agent name, tax agency name, tax registration number, taxable person name |
| Master Files | Customer file, supplier file |
| Source Documents | Product file, general ledger, payments, invoices issued, credit notes, stock file, stock movement |
Documents Required for Excise Tax Audit File
The following documents and records must be kept by businesses to ease the process of excise tax audit;
- Records of;
- Produced excise goods
- Imported excise goods
- Stockpiled excise goods
- Exported excise goods
- Evidence of exports
- Stock levels
- Destroyed or lost excise goods
- Payable tax on imported excise goods
- Payable tax on stockpiled excise goods
- Payable tax on produced excise goods
- Deductible tax
How to find the Best Audit Firms in Dubai?
Choose tax auditors that maintain the following principles;
- Competence
Prior to outsourcing potential auditing needs, consider the competence of the auditing firm. They should be excellent in both accounting and auditing services.
- Flexible
Expert auditors are capable of adapting to any type of company or business culture. Leading auditing firms in Dubai must offer an extensive variety of services tailored to your needs.
- Professional expertise
Top audit companies in Dubai must have years of experience in the industry to manage audit records and help your organization flourish.
- Communication
Honesty is extremely important in communication. Expert auditors must recognize the business’s requirements as well as ensure transparency throughout the auditing phase.
Conclusively, tax audit is a highly significant and attention-seeking matter whether it is for the purposes of VAT or excise tax. Businesses have to constantly ensure that they’re compliant with tax legal guidelines and carry out their responsibilities correctly. Also, agencies have to lease auditing services within the UAE like Farahat and co. To make certain that their audit reviews provide you with faultless outcomes.
In the United Arab Emirates, diverse tax laws had been imposed on corporations and agencies should follow these tax legal guidelines. It is the responsibility of the Federal Tax Authority (FTA) to ensure that organizations are paying their taxes efficiently and hold an eye on noncompliance and fraud subjects. For this reason, FTA conducts tax audits in UAE for one of a kind forms of taxes i.E., VAT audit, excise tax audit, and so on. Read ahead to study extra approximately tax audit in UAE;
What is a Tax Audit?
- The Federal Tax Authority’s prison dealers perform a tax audit in the UAE. The purpose of a tax audit is to assess tax compliance as well as verify that payable tax is nicely calculated and filed.
- Companies should stay organized all of the time for a tax audit performed by using the FTA. Tax audits aim to affirm tax liability with the aid of comparing the business’s economic and accounting statistics, as well as VAT return filing records.
- The tax audit is scheduled to take area in the workplace of the business enterprise in query or on the FTA’s favored region. The FTA shall alert the business no less than five running days in beforehand. The FTA undertakes tax audits all through formal work hours.
- Every commercial enterprise eligible for VAT or excise tax won’t be audited, however, the FTA arbitrarily selects the organizations who must be audited. The choice of whether or now not to audit a commercial enterprise will ultimately be made by the FTA.
What forces FTA to Conduct a Tax Audit in UAE?
The FTA makes the final choice on which businesses are subject to a tax audit, however, a number of variables may be measured when considering a company for a tax audit, for instance;
- Huge-scale companies attract FTA’s attention.
- A past with late filing of taxes can make FTA consider an audit.
- The incidence of inaccurate filing of tax will obviously cause FTA to initiate an audit.
- The complex nature of a business can also make FTA conduct an audit.
VAT Audit in UAE
When FTA executes an audit for the purposes of assessing the liability of a business for Value Added Tax, it is called a VAT audit. For the cause of VAT audit, the FTA requires groups to submit required data and documents via on-line accounting software program.
Elements of FTA VAT Audit File
The elements of the FTA audit file include;
- Company information: tax agent name, tax agency name, tax registration number, taxable person name.
- Master files: customer file, supplier file.
- Source documents: product file, general ledger, payments, invoices issued, credit notes, etc.
| Information | Additional Information |
| Company Information | Tax agent name, tax agency name, tax registration number, taxable person name |
| Master Files | Customer file, supplier file |
| Source Documents | Product file, general ledger, payments, invoices issued, credit notes |
Documents Required for VAT Audit
The following documents and records must be kept by businesses to ease the process of VAT audit;
- Records of;
- Total imports of goods and services
- Total supplies of goods and services
- Invoices of received goods and services
- Issued invoices for goods and services
- Received credit notes
- Issued credit notes
- Unused, thrown goods, or goods used for purposes other than business.
- Exported services and goods
- Corrected versions of invoices
- Corrected versions of accounts
- Payable tax on supplies
- Payable tax after corrections
- Recoverable tax on imports and supplies before corrections
- Recoverable tax on imports and supplies after corrections
Excise Tax Audit in UAE
When FTA executes an audit for the purposes of assessing the liability of a commercial enterprise for Excise Tax, it’s miles known as an excise tax audit. For the cause of excise tax audit, the FTA calls for corporations to submit required statistics and files through on line accounting software program.
Elements of FTA Excise Tax Audit File
The elements of the FTA excise tax audit file include;
- Company information: tax agent name, tax agency name, tax registration number, taxable person name.
- Master files: customer file, supplier file.
- Source documents: product file, general ledger, payments, invoices issued, credit notes, stock file, stock movement.
| Information | Additional Information |
| Company Information | Tax agent name, tax agency name, tax registration number, taxable person name |
| Master Files | Customer file, supplier file |
| Source Documents | Product file, general ledger, payments, invoices issued, credit notes, stock file, stock movement |
Documents Required for Excise Tax Audit File
The following documents and records must be kept by businesses to ease the process of excise tax audit;
- Records of;
- Produced excise goods
- Imported excise goods
- Stockpiled excise goods
- Exported excise goods
- Evidence of exports
- Stock levels
- Destroyed or lost excise goods
- Payable tax on imported excise goods
- Payable tax on stockpiled excise goods
- Payable tax on produced excise goods
- Deductible tax
How to find the Best Audit Firms in Dubai?
Choose tax auditors that maintain the following principles;
- Competence
Prior to outsourcing potential auditing needs, consider the competence of the auditing firm. They should be excellent in both accounting and auditing services.
- Flexible
Expert auditors are capable of adapting to any type of company or business culture. Leading auditing firms in Dubai must offer an extensive variety of services tailored to your needs.
- Professional expertise
Top audit companies in Dubai must have years of experience in the industry to manage audit records and help your organization flourish.
- Communication
Honesty is extremely important in communication. Expert auditors must recognize the business’s requirements as well as ensure transparency throughout the auditing phase.
Conclusively, tax audit is a highly significant and attention-seeking matter whether it is for the purposes of VAT or excise tax. Businesses have to constantly ensure that they’re compliant with tax legal guidelines and carry out their responsibilities correctly. Also, agencies have to lease auditing services within the UAE like Farahat and co. To make certain that their audit reviews provide you with faultless outcomes.