VAT health check is an exercise which every business should do to avoid any kind of fines and penalties from FTA and to ensure that the business is in compliance with VAT rules and regulations.
FTA may conduct a tax audit to ensure proper VAT has been charged on supplies and no excess VAT is claimed by the taxpayer.
VAT is a self -assessing tax, it is the responsibility of the business to ensure that there are no mistakes in the VAT returns.
Following are the main benefits of VAT health check in UAE:
- VAT compliance in all operations of the business;
- VAT planning;
- VAT compliant documentation;
- Assure timely VAT submissions;
- Assurance of you the accuracy of VAT calculations;
- Avoidance from VAT fines.
Health check includes the following:
- Review of accounting and VAT records;
- Review of your filed returns to identify any grey areas wherein perpetually errors are being made;
- Check if the returned figures as per VAT documents match with the financial records;
- Analyze if you are making use of the VAT laws in getting proper credits or refunds for your business and if the same are claimed in the returns;
- Identify areas of VAT planning;
- Review of accounting books and records and audit trail for your VAT files;
- Identifying areas of concern or opportunities, confirm that all your VAT returns are filed correctly and properly in relation to your business income and allowable expenses;
- Confirm that all your documents are incompatible with the FTA requirements.