- February 20, 2019
- Posted by: VatMan
- Category: Blog
It has been just over a year since the implementation of VAT in the UAE. It has been a bittersweet experience for most businesses with all the challenges of operating under VAT, likely more bitter than sweet. Now, just as most believe they finally understand VAT and have their house in order, the FTA has started its official VAT audits.
Many of us have already experienced the desktop VAT refund audits but now these will be more intense business audits. The FTA will provide only 5 working days’ notice to businesses unless they suspect tax avoidance, in which case there will be no notice period. Either way, it’s basically too late to start “fixing” things at that point.
So, it’s just a matter of time – every business in the UAE will eventually be audited by the FTA and the best that any business can do is to be prepared and ready.
Question is, how to do this? How to be prepared and ready for the audit?
The best option by far is to have a Mock “FTA-Style” Audit before they visit so any compliance issues can be corrected. What is the FTA expecting from their audit? To ensure compliance and to increase collections and bridge the “tax gap” through:
- Issuance of assessments for additional tax due.
- Penalties on tax due and/or non-compliance penalties.
Whether you decided to implement VAT in your business internally or with the help of a VAT consultant, it would be wise to make sure you have done it right by taking advantage of an Independent FTA-Style VAT Audit.
Please contact us today for further details.
“By failing to prepare, you are preparing to fail.”
– Benjamin Franklin
Written by: Azeem Zafar, founder and CEO of VatMan Gulf Limited.
VatMan Gulf is the first choice for businesses requiring VAT specialist services in UAE and the rest of the GCC. We provide the best client experience and deliver value for money. VMG’s mission is to provide a VAT focused service; thus differentiating itself from the majority of firms in the region that take a very general accounting approach. At VatMan Gulf we stay well versed on VAT law developments, providing a comprehensive service that includes, but is not limited to, imparting VAT knowledge, implementing training procedures and ensuring VAT compliance on a continual basis.