FTA can examine your VAT records that are to be preserved by you to verify the tax liability. Tax Audit is done in order to ensure that the claims made by you on the amount of tax payable or claims for refunds on your VAT declarations are correct
For large or complex businesses and those businesses with a past compliance history are likely to be subject to a tax audit. So based on the risk of your business on the public revenue FTA determines how often tax audit has to be performed.
Will I be informed beforehand?
FTA will inform you about the tax audit before 5 business days, and it will be conducted during the FTA’s normal business hours at your office or place where you conduct business or keep records.
If suspected of tax evasion you won’t be getting any prior notification on tax audit.
On receiving the audit notification, you should offer full assistance and facilities to the tax auditor while auditing is being carried out. You must also ensure that:
- Tax records are accessible
- Relevant premises are accessible
- Relevant staffs are present
If you fail to provide the required facilities and assistance there will be penalties apply for it. You can check out more about VAT penalties here.
Tax audit reports will be notified to you within 10 business days of the audit.
After the tax audit if any underpayment of VAT is being discovered, then FTA can issue an assessment to require payment of the relevant VAT, along with penalties.If you have any doubt about tax auditing, call us on 00971-4-331-2332.
Download VAT guide below and clear all your doubts