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
