UAE’s Value-Added-Tax (VAT) was implemented by the government at the beginning of 2018 and has now reached full maturity. Organizations submit their quarterly VAT returns to the Federal Tax Administration (FTA) either directly or through the assistance of external consultants. As FTA has begun auditing the Accounting and VAT records of entities in 2019 in accordance with UAE law, organizations are growing increasingly concerned about the information submitted to FTA in VAT returns. Organizations desire that their records pertaining to returns be reviewed by professionals to ensure that they are VAT compliant and will not incur losses in the form of tax-related penalties from FTA as outlined in the VAT law and guidance provided by the Ministry of Finance in the United Arab Emirates.

Here comes the role of VAT Audit specialists for Elucidation for Accounting (ElucidationAcc). Our experts have provided VAT review and audit services to a wide range of clients and are endowed with the necessary skills and knowledge to perform the service.

 Our approach to the VAT audit is as follows:

Examine the filed VAT returns, Tax amounts, and Penalties (if applicable) for correctness and completeness.

Analyze the accounting system and software established and implemented by the entity in terms of:

·        Completion of every transaction.

·        Invoice compliance with FTA-provided Tax invoice guidelines.

·        The legitimacy of input tax claims.

·        Correct entry of exempt and zero-rated sales.

·        Correct recording of sales return and purchase returns in accordance with FTA regulations.

·        Correct entries for problematic debts according to FTA regulations.

·        Compliance with FTA-specific guidelines pertaining to the entity’s operating industry is evaluated.

·        Delivering agreed-upon and time-bound deliverables to the entity’s executive leadership.

VAT/TAX

UAE implemented Value-Added-Tax (VAT) in 2018 under which all businesses providing taxable supplies above the mandatory threshold of AED 375,000 are required to register with Federal Tax Authority (FTA) and start charging 5% VAT from their customers, which must be remitted to FTA via quarterly filing of VAT returns.

The mandatory registration and quarterly returns created a need for professional and experienced tax agents and consultants that businesses can rely on to handle their overall tax matters, including but not limited to:

·        Registration for VAT.

·        Review of taxable activities and filing of VAT returns.

·        Requests for VAT refunds.

·        Requests for reconsideration.

·        Submission of Voluntary Disclosures on behalf of the organization and regular follow-ups with FTA.

·        VAT transactional advisory services.

Fortunately, Elucidation for Accounting (ElucidationAcc), after recognizing the aforementioned requirements of businesses in UAE, has taken the initiative to provide the solution through its specialized and well-trained professionals, and is offering all of the aforementioned services at very competitive rates to assist our clients in complex situations.