Maintain Your Business Efficiency
VAT health check in UAE ensures VAT compliance with FTA legislation. VAT in the UAE is a complex subject affecting every business aspect. To operate efficiently in the UAE, businesses must maintain VAT compliance to avoid fines and penalties from the Federal Tax Authority.
What is VAT Health Check
VAT is a fairly simple tax system. As a self-assessed tax, however, it is not uncommon for mistakes or inaccuracies to be performed. Unfortunately, many businesses do not discover these mistakes until the tax authorities audit them. This can result in legal actions, fines, and penalties against the company, which can be damaging. The bigger the amount of VAT-related transactions, the higher the probability of such undesirable outcomes.
Benefits of VAT Health Check
The advantages of conducting a VAT health check with Alberts are:
- Evaluation of present status and enhancement strategies
- Prevention of judicial proceedings, fines, or penalties against the entity
- Identifying strategies to reduce tax liability while being compliant with VAT Law
- Obtain prompt and merited VAT reimbursements from the tax authorities by recommending recovery enhancements.
- Identifying areas for policy and system enhancements
- Verify that VAT schemes are being utilized and implemented effectively.
- Ease while we assist you through your VAT issues
- Being ready for Tax Audits by FTA
Process of VAT Health Check
At Alberts, we offer a comprehensive VAT health check service that can help you assess, identify and address any potential issues before they become too problematic for your organization. Our inspection process starts with a visit from one of our specialists to your office, where they will undertake in-depth analysis and review of your accounting practices and system.
This evaluation allows us to determine the current state of the data and transactions as well as detect any inaccuracies or inconsistencies. The review will thoroughly examine the source data, audited financial statements, the accounting system, sample invoice verifications, and other checks to establish whether everything is accurate or not.
Why is UAE VAT Health Check Necessary
In the United Arab Emirates, VAT returns must be submitted precisely following all applicable laws and Executive Regulations. The Federal Tax Authority (FTA) has the authority to audit any tax registrant to guarantee compliance with VAT regulations and laws.
To verify that tax records, procedures, and reporting are in accordance with UAE VAT regulations, a registrant must complete a Tax Health Check to identify areas in which compliance and controls must be tightened to prevent future errors.
To verify that tax records, procedures, and reporting are in accordance with UAE VAT regulations, a registrant must complete a Tax Health Check to identify areas in which compliance and controls must be tightened to prevent future errors.
FTA may initiate an audit after notifying the registrant by notice. Based on the company’s industry classification and local business practices, the registrant cannot determine the scope of FTA’s review and the amount of scrutiny. The only proactive strategy is to do a Tax Health Check before the audit and ensure that compliances are followed and that appropriate procedures are in place to flag any non-compliance should it occur.
VAT Transaction Analysis in UAE
The applicable VAT rate relies on the transaction/trade conducted by the registrant or prospective registrant. A comparison of transaction situations to existing tax rules would ensure correct tax application and eliminate the possibility of error and non-compliance
Alberts tax experts are well-versed in the UAE VAT legislation and have experience in a variety of industry verticals, enabling them to provide precise tax advice on transaction operations.
VAT Requirements in UAE
A rapid examination of compliance helps ensure that the focus is directed on critical areas of VAT implications and fast corrective actions can be performed. Alberts Tax Consultants are qualified to conduct a rapid Compliance check where, based on industry and experience, they will concentrate on error-prone areas and recommend corrections.
UAE VAT Impact Analysis
Non-compliance can result in administrative penalties, and any corrective action will also result in administrative penalties from the FTA. For example, any non-compliance found can be remedied by making a Voluntary disclosure (VD). Any discovery or hint of non-compliance must be immediately followed by an Impact Analysis to determine the effect on the company’s cash flow.
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