Question 1

What triggers an FTA VAT audit?

Accepted Answer

FTA may audit businesses based on risk indicators including frequent late filings, large refund claims, industry-specific patterns, inconsistent returns, or random selection. Proactive VAT audits help you prepare and identify issues before FTA scrutiny.

Question 2

How long does a VAT audit take?

Accepted Answer

A proactive VAT health check takes 1-2 weeks. Comprehensive VAT audits typically take 3-4 weeks. If you've received an FTA audit notice, timeline is often driven by FTA deadlines (usually 20 business days to respond).

Question 3

What is voluntary disclosure and when should I use it?

Accepted Answer

Voluntary disclosure is proactively reporting VAT errors to FTA before they discover them. If you identify VAT mistakes (under-reported output tax, over-claimed input tax), voluntary disclosure can reduce penalties from 50% to as low as 5% of the tax amount.

Question 4

What are common VAT compliance mistakes?

Accepted Answer

Common errors include incorrect VAT treatment of transactions, input tax claimed on exempt supplies, missing or incomplete tax invoices, late filings, errors in cross-border transaction treatment, and improper use of reverse charge mechanism.

Question 5

Can you represent us during an FTA audit?

Accepted Answer

Yes, we provide full FTA audit support including document preparation, response drafting, representation in FTA meetings, and penalty negotiation. Our expertise helps minimize exposure and resolve audits efficiently.

Question 6

What documents do I need for VAT audit?

Accepted Answer

You'll need VAT returns, general ledger, tax invoices (sales and purchases), import/export documentation, exemption certificates, credit/debit notes, adjustment records, and VAT account reconciliations. We provide a detailed checklist.

Question 7

How much are FTA penalties for VAT violations?

Accepted Answer

Penalties vary: AED 1,000-15,000 for administrative violations (late filing, no tax invoice), 50% of tax for late payment, 50% of tax difference for errors (reducible to 5-30% via voluntary disclosure), and up to 300% for tax evasion.

Question 8

Do all businesses need VAT audit?

Accepted Answer

VAT audit is not legally mandatory for all businesses (unlike financial statement audit). However, it's highly recommended if you receive FTA audit notice, have complex VAT scenarios, claim large refunds, or want proactive compliance assurance.

Question 9

Can you help with VAT refund applications?

Accepted Answer

Yes, we verify VAT refund claims for accuracy and supporting documentation before submission to FTA. This reduces rejection risk and ensures you can substantiate all input tax recovery claims if questioned.

Question 10

What if we made VAT errors in previous years?

Accepted Answer

If you discover historical VAT errors, we recommend immediate voluntary disclosure to FTA to minimize penalties. We help quantify the error, prepare disclosure documentation, and manage the submission process to achieve the best outcome.

FTA-Approved VAT Audit Services in Dubai

What is VAT Audit?

Who Needs This Service?

Our VAT Audit Process

Why Choose Our VAT Audit Services

FTA Penalty Avoidance

Compliance Assurance

Voluntary Disclosure Support

Input Tax Optimization

Industry Expertise

FTA Audit Defense

Risk Mitigation

VAT Refund Verification

Process Improvement

Regulatory Updates

Industry-Specific VAT Services

VAT Audit Pricing

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