As the UAE Federal Tax Authority (FTA) looks closely at audits lately, doing VAT audits has become the norm in the Emirates. Getting ready for audits is just part of doing business in the Emirates and no matter the size of the business, it is especially important for large and small companies to get ready for audits and avoid restrictions.
When the FTA performs a VAT audit, they look at all the documentation relating to your VAT returns, receipts and financial filings to determine whether all the records match or not . They check all your sales documentation, purchase receipts to cross match for reference, tax receipts,refund claims and compare the amounts to your declarations.
The best way to prepare yourself for audits is to perform as many as possible on your VAT returns and reconciliations beforehand. Make sure VAT documentation both for audits and filings must show and support input and output. Receipts must also have tax documentation and as a rule, FTA expects all tax documentation to have the supplier, VAT registration, tax figures pertaining to the receipt.
Organize your documentation, as the FTA expects to see documentation spanning up to five past years. Updated bookkeeping systems should be able to produce audit and tax records and tracking information needed to complete VAT tax reports and audits.
You should also do a mock VAT audit with a qualified tax advisor. This allows you to find mistakes and missing documents before a real audit happens.
At our firm, we help businesses prepare for VAT audits, manage FTA inquiries and resolve disputes efficiently. With our expertise in VAT compliance, corporate tax planning, and FTA representation, you can stay confident that your business is fully compliant and ready for any inspection.
Contact us today for a free consultation and make your next FTA audit a smooth one.