We are now in the fourth year of VAT Implementation and it can be categorized as a ‘maturing’ VAT regime. Entities are supposed to be in the “Complied” Category.
As you are aware, FTA has commenced their VAT inspections or audits for many entities across the industries. If errors and non-compliances are identified during their inspection or audit, the Entities shall be subjected to penal provisions including recovery of unpaid VAT, fines and penalties.
The common non-compliances that we have seen in our practice are as follows:
- Incorrect VAT treatment
- Noncompliance of Tax documents
- Records are not kept as per VAT Provision
- Claiming ineligible Input Tax Credit.
- Loosing eligible Input Tax Credit
- Changes in the earlier interpretation due to FTA public clarifications/update/amendment
- In house staff not updated with recent VAT update/amendments
- VAT reported figure is not matching with Books of accounts.
Since VAT is a self-assessing tax, it is the responsibility of the VAT Registered entities to ensure the following:
- Correctness of VAT treatment
- Timely return filing and payment
- Completeness of VAT return
- Reconciliation of VAT reported figure with Books of accounts
- Tax document compliance
- Record keeping as per VAT Provision
- Compliance with recent amendments/update/public clarifications
In the light of the above, we recommend periodic VAT Heath check review which will help the organization in the following:
- Independent review of the past VAT returns
- Identification of non-compliance if any and recommendation of corrective action.
- Identify areas of improvement for better VAT compliance.
- Comfort to Business Owners on the VAT compliance
- Training to the inhouse team on the recent VAT update and amendments
How can MCA Help?
We can assist you in carrying out one-time / periodic VAT Health Check review which will help identify any non-compliances and aid future compliant practices. We have registered Tax Agent, have experienced team and extensive knowledge/experience base to help improve your VAT Compliance.
Telephone (Dubai UAE): +971 4 3319501
Working Hours: 9AM – 6PM, Sunday to Thursday