Tax Agency Number (TAN) 30004113

VAT health check

VAT health Check

UAE Tax : VAT health check's importance

VAT Health Check: VAT is a complex tax affecting every aspect of your business in the UAE and the worldwide market. As a self-assessing tax, it is the responsibility of the taxpayer to ensure they are accounting for the right amount of tax and at the right time. FTA carry out VAT inspections or audits at varying intervals. If they identify errors, the company shall be subjected to penal provisions including levy of tax, interest, and fines. The main purpose of a VAT Health Check is to ensure that as a business your handling of VAT is in line with current FTA VAT laws and regulations.

VAT health check includes the following:

  • Assess your in-house accounting records; documentation; VAT records etc.
  • Review of your filed returns to identify any grey areas wherein you are perpetually making errors.
  • Check if the returned figures as per VAT documents match with the financial records
  • Analyze if you are making use of the VAT laws in getting proper credits or refunds for your business and if the same are claimed in the returns
  • Identify areas wherein you can plan for a proper VAT planning
  • Review of maintenance of accounts and records and audit trail for your VAT files
  • Identifying areas of concern or opportunities, Confirm that all your VAT returns are filed correctly and properly in relation to your business income and allowable expenses
  • Confirm that all your documents are incompatible with the FTA requirements and if all of them are replaced or renewed whenever it is due.
  • What is a Tax Audit

    Tax Audit is one of the compliance checks or to verify a person’s VAT liability is accurate by way of examining various records which are maintained by the taxpayer. It is basically a government’s assessment of a company about their responsibility as a taxable entity. The government also assesses a company whether they are following certain responsibilities that apply to their business as per the tax laws (VAT Law, Excise Tax Law, etc.).

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