MAKE YOUR BUSINESS READY FOR FTA TAX AUDIT IN 2019

MAKE YOUR BUSINESS READY FOR FTA TAX AUDIT IN 2019

The FTA has commenced auditing of businesses registered for VAT. It is of utmost important that business gets a Health Check of its accounting record before a formal notification for the Audit is received. It will be a smooth process for business with a perfect accounting record. However, lack of compliance can expose to high risk of administrative penalties. FTA will provide 5 working days’ notice before visiting the business premises.

Items should be verified before notification arrives includes but not limited to;

  • Verification of all Supplies and Purchases disclosed in the VAT Returns;
  • Verification of all Receipts and Payments in bank statement(s);
  • Reviewing that no disallowed Input tax has been claimed;
  • Availability of all Import record and its declaration in Returns;
  • Record of exports and declaration in Returns;
  • Availability of Profit and Loss account and Balance Sheet;
  • Proper filing of accounting record;
  • Availability of Inventory record and reconciliations;
  • Reviewing if there is a need to file a Voluntary Disclosure Form (VDF). If such Disclosure is required and not made in due time, penalties can be in range of;

5% of tax amount + AED 3,000 to 5,000

30% of tax amount + AED 3,000 to 5,000

50% of tax amount + AED 3,000 to 5,000

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