Value Added Tax is levied on both goods and services. With the introduction of VAT in UAE with effect from 1st January 2018, there has been a shift in the way businesses, accounting and IT is being looked at in compliance to the newly introduced legislations.
VAT has marked a major impact on product costing, pricing of services, cash flow movements, procurement and supply chain decisions and implementing the required changes in the existing IT framework, accounting and financial reporting software that are being considered as major initial challenges. There is a need for new operating methods and models that need to be adopted and an essential requirement for employees to have comprehensive training programs to enhance their skill sets and adopt the newly introduced tax systems.
Design Develop & Train
Registration, Implementation & Compliance
Vat Compliance Audit
The objectives of Vat Compliance Audit are Accuracy, Correctness, Completeness and Validity. To obtain an understanding of the process applied in accounting for VAT. To Ensure that the process and procedures are adhered to; VAT returns have been properly completed and submitted in time, regular independent checking and reconciliation of tax data are processed through source systems, reviewing the reconciliation performance when accounting for the input and output VAT.
Select a sample of the accounts payable and verify the payment based on an original invoice clearly marked, see that the supplier is registered for VAT; the goods/services qualify as taxable supply. VAT is correctly calculated, invoices supporting all expenditure are checked and are valid tax invoices and that the company is reclaiming valid input tax. To make sure that the tax invoices have been issued within the time limit prescribed by the law.
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