VAT Audit

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

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 that 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 the count and the total value of transactions with input tax
• Review the process to identify the blocked input tax expenses and their posting in the ledgers
• Review the process of allocating input tax into taxable and exempt supplies.

Reverse charge mechanism validation

• All import 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 to concerned goods and services
• Review of goods and services on which RCM is being applied.
• Review of accounting entries 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