Improve your compliance and mitigate taxation risk through our VAT audit services in Dubai. VAT is short for value-added tax, a consumption tax that applies to most goods and services in the UAE. The Federal Tax Authority can conduct VAT audits at its sole discretion.
Innovex is an experienced tax consultant in the UAE. Our expertise in VAT audit services can play a critical role in ensuring compliance and preventing regulatory issues for your company. We also provide FTA VAT audit assistance and are committed to providing efficient service to ensure that our clients are well informed and can easily meet the FTA’s auditing requirements.
Here, we provide detailed information on the steps for VAT auditing in the UAE, its purpose, procedure and required documents.
A VAT audit assesses a taxpayer’s compliance with the UAE VAT legislation. It is conducted to verify that the net amounts of VAT declared and the amount paid by the taxpayer are correct.
Innovex assists businesses with the required disclosure method under the UAE Value Added Tax. Our VAT audit helps prevent taxation risks as it allows companies to ensure their VAT compliance. It helps protect them in case of an FTA audit, examining the taxpayers’ records and VAT return filings to determine whether they are liable for VAT.
Our VAT audit services will help you decide if your company must register for VAT. If you had a turnover of AED 375,000 or more in the last 12 months, VAT registration is mandatory.
If your company had a taxable income of AED 187,500 or less in the last 12 months, you cannot register for VAT unless you are expecting to breach this threshold in the next 30 days. In fact, if you are VAT-registered but your past 12-month-turnover is at or below this threshold, your company must be deregistered or removed from the register of companies in the UAE that are eligible to pay VAT.
If your company has a turnover of more than AED 187,500 but less than AED 375,000, VAT registration is optional.
Our VAT audit can include a comprehensive examination of the company account to identify sales flow, purchase rate, and compatibility. It may evaluate and assess all of the company’s financial documents and bank statements.
In case of an FTA VAT audit in Dubai, the government agency will request the documentation in both hard copy and soft form. It will examine acquisition and payment invoices, accounting books, and VAT reports filed. The FTA conducts this type of audit to:
Here’s what you can expect when the FTA declares a VAT audit on a company.
In a VAT audit, you will need to provide the following documents:
During a VAT audit, taxable enterprises must ensure their records are in order. Here are some of the factors examined during a VAT audit in Dubai.
Innovex Tax Consultant Co. delivers accurate, credible and high-quality VAT audit services in Dubai and other parts of the UAE. We can perform third-party VAT audit checks on your company to mitigate your taxation risks and strengthen your internal controls. We can also serve as your tax agent and provide FTA VAT audit assistance as needed.