If you are a VAT-registered business, you can expect a VAT inspection at some point in time, by officers from the UAE’s Federal Tax Authority (FTA).
Do not panic. VAT inspections are routine checks conducted by the tax authority to review your VAT records and ensure whether they are correct or not. As such, it is best to be always prepared to ensure you avoid the potential of penalties imposed by the FTA.
Peter Whatley, a Partner at Gulf Tax Accounting Group (GTAG) is a former VAT-Inspector who helped roll out VAT in South Africa.
He has extensive Direct and Indirect Tax experience obtained at the South African Revenue Service where he led pre-VAT implementation education teams followed by a role in the post implementation VAT and Corporate Tax Inspectorate.
VAT INSPECTION PROCEDURE
- We will visit your business and carry out a VAT inspection, using proven tax audit techniques, just as it would be if a Federal Tax Authority officer conducted it.
- We will review the systems you have in place and advise you on any risks to highlight the areas that need particular attention.
- We will discuss the findings and provide you with a detailed report for you to act upon, leaving you fully confident and ready for a real FTA VAT inspection, thus putting your mind at ease.
THE FTA PENALTIES
| Description: | Penalty: |
|---|---|
| Lack of Proper Accounting Records | 1st Offence – AED 10,000 2nd Offence – AED 50,000 |
| Administrative Penalty | Up to 300% |
| VAT Fraud | Jail + 500% |
| Late Submission of VAT Returns | 1st Offence – AED 1,000 2nd Offence – AED 2,000 |
| Incorrect Submission of VAT Returns | 1st Offence – AED 3,000 2nd Offence – AED 5,000 |
| Incorrect Invoicing | Per Incident – AED 5,000 |
BENEFITS OF A MOCK VAT INSPECTION
Don’t get caught out!
From only AED 1,000 you can now reap the benefit of a Mock VAT Inspection, performed by a friendly Ex-Tax Inspector.
To avoid these hefty penalties, get in touch with us now using the form below or call +971 56 314 8567.