Businesses in the UAE registered under VAT must adhere strictly to the VAT laws established by the Federal Tax Authority (FTA). The FTA periodically conducts audits to scrutinize the tax structures and payments of firms. Non-compliance can result in hefty penalties. To avoid such consequences, companies can conduct VAT health checks through experienced VAT consultants like Unicorn Global Solutions in the UAE.
What is a VAT Health Check?
A VAT health check is an independent review of a company’s VAT procedures and structures to ensure compliance with VAT laws. This process, conducted by professional VAT consultants, helps firms file accurate VAT returns on time. By conducting a VAT health check, businesses can avoid substantial penalties from the FTA.
The Pivotal Role of the VAT Health Check in the UAE
The VAT health check is crucial for identifying and rectifying errors in VAT procedures or return filings before they are detected by the FTA. Key benefits of VAT health checks include:
– Ensuring transactions comply with VAT law.
– Evaluating the effectiveness of VAT control procedures.
– Detecting errors early and taking corrective measures.
– Keeping VAT records up-to-date.
– Preparing for FTA audits.
– Ensuring accurate VAT calculations and record maintenance.
– Reconciling accounts and VAT records.
– Preventing tax evasion and ensuring timely submission of accurate tax returns.
– Assisting in availing eligible VAT return refunds.
– Ensuring VAT is charged correctly across different scenarios and zones in the UAE.
Activities Involved in VAT Health Checks in the UAE
Professional tax consultants like Unicorn Global Solutions conduct several activities during a VAT health check:
– Assessing accounting and VAT records, ensuring their reconciliation.
– Reviewing and ensuring timely filing of VAT returns, and detecting any errors.
– Evaluating VAT documents and financial records, cross-checking transaction accuracy.
– Verifying administrative compliance with documents uploaded on the FTA portal.
– Maintaining important VAT records for FTA audits.
– Identifying VAT-related opportunities.
– Ensuring VAT invoices comply with legal requirements.
– Verifying correct input and output VAT amounts.
– Implementing effective VAT accounting strategies to improve compliance.
Why Should Firms in the UAE Conduct VAT Health Checks?
Similar to a personal health check-up, a VAT health check for firms can ensure the correctness and compliance of VAT procedures, detecting any errors early. Although optional, conducting a VAT health check provides peace of mind regarding the VAT activities of your business in the UAE.
Why Choose Unicorn Global Solutions for VAT Health Checks in the UAE?
Unicorn Global Solutions has been providing professional tax consultancy services for over a decade, making it one of the leading accounting firms in the UAE. Our team of experts offers personalized VAT-related services, ensuring solutions tailored to your firm’s needs. Conducting a VAT health check with Unicorn Global Solutions ensures your business stays compliant and avoids penalties.
To learn more about our services and how we can help your business with VAT health checks, contact Unicorn Global Solutions today. Text us on WhatsApp or call us today.
