All Businesses in UAE must be prepared for official and obligatory audits in 2019, as it has been one year since the VAT has been implemented in UAE. VAT auditing is conducted for all kinds of businesses to ensure the accuracy of accounting, bookkeeping and filing of VAT returns.
But before preparing for a VAT audit it is important to gain clear understanding on the following:
• What is a VAT Audit?
• What records need to be maintained for a VAT Audit?
• Why is VAT Consultancy Service Required?
• Why it is important to hire VAT Consultants in UAE?
What is a VAT Audit?
It is a detailed analysis conducted by the VAT experts to inspect the records, information, and data related to the business to ensure their VAT compliance. The audit is conducted by the FTA to verify information or uncover fraud and inaccurate tax returns. VAT represents a major financial risk if it is not submitted correctly or if the official documents don't comply with current regulations in force.
What are the records to be maintained for a tax audit?
Under VAT in UAE, the Federal Decree Law specifies the below accounts and bookkeeping records that are essential to be maintained by all registrants in the country and should be made available to FTA when asked:
1. Proper record of all supplies and import of goods and services.
2. All necessary tax invoices and alternative documents related to receiving goods or services.
3. All tax credit related notes and alternative documents issued and received.
4. All necessary tax invoices and alternative documents issued.
5. All tax credit notes and alternative documents issued.
6. Complete record of goods and services that have been disposed of or used for matters not related to business, showing taxes paid for the same.
7. Complete record of goods and services purchased and for which the input tax was not deducted.
8. Record of exported goods and services.
9. Records of the adjustments or corrections made to accounts or tax invoices.
10. Full details of the goods imported to the state along with customs declarations and supplier invoices.
Why is VAT Consultancy Service Required?
Whenever a business operates, claiming for VAT returns turns out to be mandatory. Taking VAT consultancy services from professionals assist in staying competitive yet compliant to tax regulations in all aspects. Having strong expertise in handling tax compliance, VAT consultancy professionals act as a reliable partner, and provide trusted tax advisory and support, firmly aligned to your business goals.
Why it is important to hire a VAT Consultant in UAE?
VAT consultant in UAE advice and analyse the impact of VAT in the business and provide perfect guidance to comply with the VAT law. During VAT audit, these consultants give proper and appropriate guidance on the process and administrative requirements that every registered individual and businesses must follow.
Maintenance of accounts and necessary relevant records is a highly essential requirement for proper management and control of the business operations. The time period of this maintenance should be specified too. Thus, to save the company from all such kind of glitches, taking assistance from the best tax consultancy service provider is a great choice! So, choose the best VAT consultant, and get ready for VAT and its account maintenance with no worries in your mind.