Preparing for FTA Tax Audit

Preparing for FTA Tax Audit

7/18/2022
Preparing for FTA Tax Audit
  • When?
    • VAT was first implemented in the UAE last January 1, 2018. With the year 2023 fast approaching, VAT will reach its 5th year of implementation starting January 1, 2023.
      • Wastage
      • Deficient
      • Shortage of the expected quantity
  • FTA audit timeframe
    • The FTA may only conduct tax audits 5 years from the end of the relevant tax period, except in proven cases of Tax Evasion by the FTA where the FTA has 15 years.
  • What to expect?
    • There may be a substantial surge in the number of tax audits for the taxable periods in 2018 as this is the last chance for the FTA to conduct its audit.
  • Taxpayer preparations
    • To avoid and minimize the deficiency taxes and penalties that the FTA may impose during a tax audit, taxpayers may take the following preventive steps.
      • Preparation of the documents
      • Checking the previously filed VAT
      • Performing reconciliations
  • How can Crowe help?
  • Crowe can assist Companies in performing VAT Health Checks to identify issues and check compliance of the previously filed VAT returns with the VAT regulations.
  • Crowe can assist Companies in the correction of previously filed VAT returns by submitting Voluntary Disclosures or applying the necessary corrections in the current tax period VAT returns

Contact Us

Markus Susilo
Markus Susilo
Partner, Tax Advisory
Michel-Ruitenberg
Michel Ruitenberg
Director – Tax Advisory