The UAE Government introduced Value Added Tax (VAT) in early 2018, and since then, its implementation has evolved significantly within the country. Currently, organizations in the UAE are actively engaging in the submission of their quarterly VAT returns to the Federal Tax Authority (FTA). This process is carried out either independently or with the assistance of external consultants.
In light of the FTA's initiation of auditing Accounting and VAT records for entities in 2019, in accordance with UAE Law, organizations have heightened concerns regarding the accuracy of the information submitted in their VAT returns. To mitigate potential risks and ensure compliance, organizations are increasingly seeking professional review of their records. This precautionary measure aims to safeguard against the possibility of incurring tax-related penalties from the FTA, as outlined in the VAT law and guidance provided by the Ministry of Finance in the United Arab Emirates.
Enter the scene Virtual Accountants (VA) VAT Audit specialists. Our professionals have delivered VAT review and audit services to a diverse range of clients, possessing the expertise and knowledge essential for effective service delivery. Our VAT audit methodology unfolds as follows:
- Examination of submitted VAT returns, ensuring precision and completeness in tax amounts and potential penalties.
- Assessment of the entity's accounting system and implemented software for effectiveness in terms of:
- Thoroughness of all transactions.
- Verification of invoices for compliance with FTA-provided guidelines for tax invoices.
- Validation of input tax claims.
- Accurate recording of zero-rated and exempt sales.
- Proper handling of sales and purchase returns in accordance with FTA guidelines.
- Verification of invoices for compliance with FTA-provided guidelines for tax invoices.
- Assessing adherence to industry-specific FTA guidelines within the entity's operational sector.
- Providing agreed-upon and time-bound outcomes to the higher management of the entity.