Audit & VAT

VAT Auditing Service

A VAT auditing agent registered with the Federal Tax Authority (FTA) in the UAE assists companies with VAT clearing by offering pre-audit and post-audit support.

A tax audit is a procedure used by the FTA to examine information, data, or any taxable commercial records of a person who is obligated to pay taxes on a business that is currently operating in the UAE. The FTA ensures that the person responsible for paying taxes follows the UAE VAT Law and Procedures, according to the Tax Law (FD-Law No. 7). The FTA conducts a thorough tax audit to ensure that the taxable person has satisfied all of his or her responsibilities and that any outstanding taxes have been collected and remitted to the government on time.

At Freezoner, we provide authentic and complete tax consulting services in Dubai and around the UAE. Our registered team of professionals with the FTA manages all your tax records and keeps your business accounts updated in accordance with the standards of the FTA. We assist you with transparent handling and filing VAT returns. We rectify all forms of mistakes in the VAT forms and compute the correct values for sales taxes and refunds. We regularly update your business accounts relevant to the FTA rules.

Our VAT Services

Since the 1st of January 2018, VAT has been in effect in the UAE, and all businesses operating in the country are required to meticulously document their business revenues and corresponding VAT charges. VAT will be charged to all registered enterprises on goods and services they receive from suppliers, as well as to their customers. The difference between the two payments is paid to the government.

VAT Implementation

Our TAX/VAT experts will visit your workplace to learn about your business model and accounting system in order to create a VAT implementation strategy that is tailored to the UAE VAT regulations.

VAT Return

We provide assistance in preparing and filing the VAT return by implementing the required input tax credit against the overall VAT liability, along with advice on cash flow planning and better scheduling, all within the legal timeframes.

VAT Registration

The UAE VAT Law's provisions for VAT invoicing will be implemented. Under sufficient supervision, IT personnel, Accounts, and other sales-related departments will receive proper training. We will give you advice on how to format your invoices in accordance with VAT regulations.

Our Book Keeping And Audit Services

Error-free accounting and bookkeeping are at the core of modern business conduct. With the support of specialists, Freezoner UAE provides value-added and innovative one-stop-solutions to your bookkeeping and auditing needs, identifying the VAT issues faced by the company and assisting in overcoming them within the appropriate timeframe. Based on our years of experience, we can generate yearly financial statements and audit reports for a wide range of firms.

Company Book Keeping

We provide the fundamentals of bookkeeping and managing financial records for a business along with business setup services in UAE.

Company Audits

Constituting annual audit and filing audit report (Company’s renewal audits reports).

Tax Residency Certificate

Our services include obtaining a tax residency certificate from the Ministry of Finance for UAE-based companies.

The Process Of TAX Audit by FTA

A tax audit is carried out in the UAE by specialized personnel entrusted by the FTA. While conducting a tax audit for a firm based in the UAE, FTA tax auditors are authorized to examine tax returns and other associated information. The FTA is entitled to undertake an audit at any moment for any cause under the Tax Procedure Law.

According to Article 17 of the Tax Procedure Law, the FTA can perform a tax audit without notifying the taxable person or business; however, the audit is normally preceded by a five-day notification to the relevant authorities. According to Article 19 of the Tax Procedure Law, the FTA usually conducts the audit during working hours. In special circumstances, the Director-General of the FTA may authorize an audit outside of working hours.

According to the tax procedures law, it is the role of the company's legal representatives and tax agents in Dubai to provide all kinds of support to the FTA auditors. Tax auditors have the authority to re-conduct an audit if there are suspicious irregularities or inconsistencies in the data. For successful compliance, the enterprises require registered agents in the UAE.

Why Conduct An Audit?

During a tax audit in the UAE, taxable enterprises must go over a number of key points that the FTA will examine. During an audit, there is a multitude of things to keep track of, as mentioned below:

1. Companies that are required to pay taxes in the UAE must utilize the most up-to-date accounting software to ensure compliance with the UAE VAT Law. When filing VAT taxes in the UAE, having the right software is essential. Under Article 2 of the Tax Procedures Law, FREEZONER aids businesses in implementing the appropriate accounting software to generate records and reports.

2. The UAE tax auditors also check the zero-rated, exempted, and standard-rated taxes, according to UAE tax laws. They make certain that regular tax rates of 5% or 0% are applied to taxable supplies. In addition, zero-rated tax goods are applied with zero tax with proper official and commercial documentation.

3. The input tax is scrutinized during a tax audit to see if the expenses and purchases are tax-deductible. Tax auditors verify that input credits are applied for 5% or 0% supplies and are not levied for exempted goods or other restricted input taxes, such as entertainment services.

4. To ensure the completeness of the records and the VAT returns, the tax auditor will compare the submitted VAT returns to the accounting records. Before submitting VAT return files to the FTA, tax consultant agents inspect them to ensure compliance with UAE legislation. As a result, hiring a tax consulting agent must meet the FTA's stated standards during the tax audit.

Records For Tax Audits In The UAE

In order to assist the FTA during an audit, taxable firms operating in the UAE must keep a record of certain things. Tax registrants are required to keep track of the following and submit them during an audit, according to Article 78 of the Federal Decree-Law on VAT:
  1. Keeping track of all supplies and imports.
  2. Tax invoices and documents pertaining to goods and services received.
  3. Received all tax credit notes and documents.
  4. All invoices and documentation related to taxation that has been issued.
  5. Records of products and services disposed of for non-business purposes, as well as records indicating tax paid on those goods and services.
  6. Records of purchases of goods and services for which the input tax was not deducted.
  7. Records of goods and services exported.
  8. Accounts or tax bills that have had changes or corrections made to them are kept in records.
  9. Details of imported items, as well as customs declarations and invoices from suppliers.
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