VAT Health Check

“If you don’t make time for your wellness, you will be forced to make time for your illness” – Whoever said it, said it right!
Overall VAT readiness and compliance – Your need. We recognize!

VAT is a complex tax affecting every aspect of your business in the UAE and the worldwide market – calls for close attention.

VAT is a transaction-based indirect tax which is levied at each step of the supply chain. End consumers generally bear the VAT cost while registered businesses collect and account for the tax, in a way acting as a tax collector on behalf of the Federal Tax Authority. Hence, businesses are responsible for declaring their tax correctly through a VAT return and pay it in a timely manner.

As a self-assessing tax, it is the responsibility of the taxpayer to ensure they are accounting for the right amount of tax and at the right time.
A tax audit is when the FTA decides to examine your tax return a bit more closely and verify your revenue and expenditures. The FTA carries out tax audits at varying intervals, and in case any errors are identified, the business is liable to pay the outstanding tax, penalties retroactively, and interest wherever applicable.

Under ever-changing market and business circumstances, staying up front in dealing with business regulations, and the thorough knowledge of UAE VAT Law and Accounting aspects in that regard, we say a proper preparation in advance can wipe out the risk factor in the VAT Returns you file and the tax audit the authority rightfully initiates.

Your VAT Registration is not a hassle any more!

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What is VAT Health Check?

VAT health check is a form of preventive tax control and a comprehensive review of the organization’s overall VAT readiness and compliance procedures. MS tailors our professional VAT health-check services to find any VAT related issues before the FTA does and thereby assists our clients in mitigating associated tax risks.

What do we do?

1. Understanding The Client & Their Specific Methodology

Based on the understanding of your particular demands, management activities, and industry-specific issues, we perform an independent review of the client’s tax filings. We intend you to feel more secured about your tax filings.

2. Hold Discussions, When Required

To understand specific concerns and to propose timely solutions to intricate issues or doubts on treating various issues.

3. Deciding On The Scope Of Work

Depending on your requirements, explain and agree about the scope of work and detailed procedures that will be applied. We have always assured transparency in our work.

4. Gathering & Analysis of Data

Coordinate with your accounting department to obtain all vat filings of a period and related documents. We then review your accounting records, the correctness of calculation, recording of tax liabilities, and tax compliance of data presented in the company’s financial records, documentation, and tax records. We also compare your VAT returns with your annual accounts. These reviews help organizations to validate their VAT treatments for proper accountability in business transactions, while also ensuring the accuracy of the information reported to the FTA.

5. VAT Review & Verifications

Check the tax filings to ensure that they are in compliance with VAT law UAE. Reconcile tax figures against accounting figures to make sure that there are no missing transactions for tax-filing purposes. This will help identify irregularities and errors in the application and interpretation of tax regulations and address those issues most effectively by developing appropriate solutions. We ensure that as a business your handling of VAT is in line with current FTA VAT laws and regulations and you are free from clerical errors.

6. Best Use Of VAT & Relevant VAT Schemes

We perform a comprehensive review of tax reconciliation to ensure all opportunities to reduce tax liability or to obtain a refund of overpaid tax are identified. We Assist with application for rulings or interpretations by tax authorities on issues in question to minimize risks of uncertain tax liabilities from a possible challenge by the tax authorities. This will also lead to the elimination of any double-payment of Value Added Tax, or the possibility of undercharging the end-user, further benefiting the organization.

When do you need a VAT Health Check?

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When you want to clearly understand the correctness of your tax filings and all potential tax risks before the official tax inspection so that you can be well prepared for the tax inspection to minimize tax penalties.

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You find some mistakes of tax filings and want an independent review to detect all other errors if any.

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When you feel that there may be undetected tax risks somewhere due to typical characteristics of your business, or you do not have enough confidence in tax filings of previous periods

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When proper compliance with the legislation and ensuring to make the best use of VAT law and existing VAT Schemes are things, you look forward to.

Now you know, it is imperative that businesses should be proactive and take all the necessary steps to minimize non-compliance risks and errors.

Our VAT Health Check services promise you an outcome of indicating and quantifying possible risks, recommendations to mitigate the tax risks, and framing that real and good picture towards the tax authority with respect to your VAT compliance status. Because we’re concerned about your business! And we know: Getting it right can save you money, getting it wrong can be very costly!

We build a bespoke service for our clients. Whether they want to advance an idea, a capability, or the world at large, MS is with you every step of the way.

Mohammed Shafeek

Founder & CEO, MS

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