Preparing for FTA Tax Audit
![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.
- 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
- 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
