Tax Audit

Tax Audit service in Dubai

Tax Audit service in Dubai is one of the compliances examine to verify a person’s VAT liability is correct by way of examining various records which are continue by the taxpayer. It is basically a government’s assessment of a company regarding their responsibility as a taxable entity. 

The government also assesses a company whether they are following definite responsibilities that apply to their business as per the tax laws (VAT Law, Excise Tax Law, etc.). An auditor may be carry out at the taxable individual business premises known as ‘field tax’ or in the workplace of the FTA. Generally, earlier notification of an audit will be given to the taxpayer.

Tax procedure

The FTA authorities will inspect the returns and other details. There is requirement is not a specific reason for the FTA to conduct an audit of a company. They can conduct it for any cause or whenever they want. A notice will be issue to the company, at least 5 days before the scheduled audit date. It will contain characteristic, such as the audit schedule, place, involved parties, cause (if anything particular), etc. The auditor/s and the firm will meet at the scheduled place at the schedule time and the action will begin. 

The auditor may ask for business data, in original and/or copies, and take samples of merchandise and other assets as available at the place at the time. The audit is require to be conduct during the official FTA working hour, unless the Director-General decides to conduct the  Internal Audit of a business exterior regular hours, in an exceptional case. The Company subject to a Tax Audit service in Dubai along with their lawful representatives and tax agents.

What is the timeline for Tax Audit?

All the VAT register business will not be audited and there is no fixe frequency in which the tax  will be conduct. From time to time, the FTA will select the businesses who are require to be audit. The decision to audit the businesses totally is at FTA’s discretion. The following are few of the factors which are consider in selecting the business for audit.

  • How big or complex the business
  • compliance past of the business
  • The propensity of late submission of returns
  • Instances of incorrect return filing and so on

For example, a large business selling a high volume of wares and having a poor compliance data is more likely to be subject to a Tax Audit service in Dubai than a little business with a strong compliance record, as the risk to the tax income is greater.