VAT & Excise Compliance

After registering under VAT/Excise, businesses are required to file periodic statutory declarations. VAT/Excise returns summarising all the taxable transactions that the business has made in that specific period, have to be filed as per the tax periods stipulated by the FTA for each entity registered with the FTA.

All the required information has to be recorded accurately on an ongoing basis. Further it is mandated for businesses to declare the VAT that has been charged on sales (output VAT). The VAT that has been paid (input VAT) by the company can be recovered, subject to the input tax recovery conditions provided in the relevant regulations.

It is imperative that VAT/Excise returns are accurately compiled based on the underlying accounting records and must accurately reflect the amount that is due to/from the government. Any errors in filing statutory returns not only attracts fines and penalties but may also lead to loss of reputation. Therefore, there is merit in investing time and energy to set the procedures and systems to manage tax compliance efficiently for an entity. Working on a base of sound VAT knowledge and complying with the relevant laws precludes an entity from a tax inspector’s investigation and unplanned tax bills.

Partnering with experts in the field can be the ideal solution in such a scenario. PKF’s tax team can review the tax computations prior to filing of VAT/Excise returns and ensure that an entity’s tax obligations comply with the relevant laws and regulations and there are no omissions or errors.

In addition to assistance with filing of VAT/Excise Returns, PKF’s team of experts can assist with on-going VAT/Excise compliance as required by law including:

  • Assistance with registration with the Federal Tax Authority;
  • Assistance in communication with the FTA for tax related queries and processes (such as refund application, voluntary disclosures) and during tax audits conducted by the FTA.

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