VAT Audit

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We provide tax vat audit service

We are performing VAT health checks / Tax audit to make sure VAT has been implemented properly and entity is tax compliant. Our VAT audit includes the followings:

  • Understanding VAT impact and key processes
    • Review the VAT impact assessment carried out by the client.
    • Review the process of identifying the type of supply (standard rated, zero rated, exempt or out of the scope).
    • Review the process of identification of partial exemption component and its accounting treatment.
    • Review the processes of identification of deemed supply.
  • Master data verification
    • Review the master data of suppliers and customers with VAT registration
    • Review of accuracy of tax registration number with FTA verification.
  • Output tax verification
    • Review the process of identifying entries which are out of the scope, zero rated, exempt and standard rated.
    • Review the process of posting in the VAT ledger from the source documents.
    • Review of process of classification of sales and output tax Emirates wise.
  • Input tax verification
    • Review the process to reconcile count and total value of transactions with input tax.
    • Review the process to identify the blocked input tax expenses and its posting in the ledgers.
    • Review the process of allocating input tax into taxable and exempt supplies.
  • Reverse charge mechanism validation
    • All imports codes have been updated in the FTA portal which is linked with the custom portal.
    • Reviewing the process to make sure RCM is being applied on concerned goods and services.
    • Review of goods and services on which RCM is being applied.
    • Review of accounting entry posted in the system for RCM.
    • Review of RCM liability booked in the system.
  • Invoice and credit note check
    • Review of sales invoices issued to the customers and purchase invoices received by the vendors and checking its compliance as per Article 59 of the UAE VAT Regulations.
    • Review of credit notes and checking its compliance as per Article 60 of the UAE VAT Regulations.
  •  Compliance
    • Review of internal reports extracted from the system to prepare VAT Returns submitted for the last periods.
    • Review of VAT Calculations and VAT return
    • Review of compliance with FTA Laws
  • Transitional rules
    • Review of processes of identification of contracts and transactions where transitional rules are applicable and verify its applications.