Excise Tax Audit

Under the FTA, all registered organizations must determine if their excisable items are taxable and comply with tax duties. This is essential, as the government may contact you if they wish to conduct an excise duty audit. If FTA auditors discover noncompliance, the taxpayer may be subject to hefty fines.

What is Excise Tax Health Check in Dubai?

Since 2018, the UAE has imposed excise taxes on certain products. Under the FTA, all registered entities are expected to determine if their excisable items are taxable, file a monthly excise duty return. This is crucial to keep in mind, as the authorities may contact you if they need to conduct an excise duty audit. If FTA auditors discover noncompliance, the taxpayer may be subject to hefty penalties. In light of this, our tax consultants in Dubai will give you an expert excise duty pre-audit health check. By following these precautions, businesses can prevent future FTA penalties.

What is an Excise Duty Audit?

An excise audit is an examination and verification of the tax compliance of a registered legal organization. The purpose of the audit is to check that the taxpayer’s excise tax liability is accurate and has been paid on time.

Who Conducts Audit of Taxes in UAE?

The Federal Tax Authority (FTA) is the official regulatory authority in the country, able to conduct VAT/excise tax audits to examine businesses’ operations and tax compliance.

Why is a Pre Audit Tax Health Check Important?

A pre-audit health check is significant for all United Arab Emirates-based excise taxable businesses. This preliminary tax assessment evaluates potential tax difficulties. Identifies areas of noncompliance with excise duty rules and business risks. Before the auditor checks your excise records, you must correct any errors or omissions. We will perform a pre-audit review of your excise records to identify any potential issues.

How Does the FTA Determine if it will Conduct an Excise Audit?

The Federal Tax Authority identifies businesses for excise tax audits, but no particular criteria are specified. It is solely up to the FTA to choose what will be audited and at what periods. They can conduct a formal tax audit at any time and location.

The FTA sends the taxable firm a five-day notice of the excise duty inspection. However, when tax evasion is suspected, auditors make an unannounced visit to the business. They typically determine the location and time of the UAE’s excise duty inspections. Auditors may request originals or copies of your excise paperwork. Under the UAE Excise Procedure Law, they may also conduct a second audit if the company fails to meet its tax requirements in the first round.

How Should you Prepare for an Excise Audit?

The auditors will require pertinent information and documentation pertaining to your excisable goods. The following are the bare minimums for an excise audit in the UAE:

A summary of all excise items produced, imported and accumulated in the previous year
Export evidence and documentation of excise products
Monthly sales of excise items for the previous tax period, including bills
Excise items produced, imported, and discharged from specific zones
Tax records for all excise goods that have been damaged or lost
Accounting for excise duty payable on excise items imported, accumulated and manufactured
Details on the kind, amount, and monetary worth of excise items
Detailed information on excise products stock levels
Excise goods duty deduction registry

Our Excise Inspection Services Involve the Following Steps

When preparing your company for an excise audit in any emirate in the UAE, we will focus on the following critical areas:

What is Excise Tax Health Check in Dubai?

What is an Excise Duty Audit?

Who Conducts Audit of Taxes in UAE?

Why is a Pre Audit Tax Health Check Important?

How Does the FTA Determine if it will Conduct an Excise Audit?

How Should you Prepare for an Excise Audit?

Our Excise Inspection Services Involve the Following Steps

Newsletter

Explore

Contact Info

Popular Post