A VAT health check is super essential for every business, to ensure authenticity and compliance of organizational processes, under the VAT guidelines – and thus successfully submit accurate numbers for VAT returns.
A VAT health check assures the organization of fair treatment on VAT, given the transparent audit trials and reconciled accounts. A health check begins after discussing the business, identifying the areas that need focus, and reviewing the VAT workings and systems being used. In the UAE, the Federal Tax Authorities are authorized to perform tax audits – thus it’s important for every business to be VAT compliant, to ensure no penalties on your business.
How is a VAT health check conducted?
A VAT health check is conducted by first independently reviewing the client’s tax filings to get a true and fair view of their business. Post this, if there are any questions, it’s put forward to the clients. After gathering all the past and present information, a thorough study is undertaken on the accounting records, the calculations, the tax liabilities, tax compliance, and tax records. Annual VAT returns are compared with the accounts, to ensure they provide the same numbers. It’s all about knowing if VAT is fairly treated by an organization and reports accurate information to the FTA.
A VAT health check is a must for every business. But why? A VAT health check conducted by qualified VAT firms in the UAE helps you:
- Identify opportunities to maximize your VAT returns
- Highlights all areas of concern, helping you mitigate risk in the most efficient manner
- Reviews your VAT liability, helping you optimize it.
- Identify if the maximum VAT benefit is being achieved by your business
- Constantly reviews your VAT systems to identify arising opportunities or improvements
- Find errors or gaps before the FTA, thus potentially mitigating any penalties or defaults
If you are finding any discrepancies in your business, and looking for a VAT health check, reach out to TRC Pamco, a VAT consultancy in the UAE. They provide Health check services with their vast experience and knowledge on the subject matter.