VAT accounting that survives an FTA audit.

The procedures every registrant needs

Tax codes and chart of accounts

Separate output VAT and input VAT control accounts, with tax codes for standard rated, zero rated, exempt, out of scope, reverse charge and import VAT. Emirate level coding of standard rated sales so the return can be completed without manual analysis.

Tax invoice compliance

Every tax invoice must show the words "Tax Invoice", your TRN, the customer's TRN where registered, invoice date and number, description, unit price, quantity, VAT rate and amount in AED, and the total. Simplified tax invoices are permitted below AED 10,000 to unregistered customers. We review your templates and a sample of issued invoices.

Input VAT controls

Before input VAT is claimed, someone must confirm the supplier invoice is a valid tax invoice, the expense is for taxable business use and it is not a blocked category. We build this check into the payables process rather than the return.

Reverse charge and imports

Imported services and goods cleared under your TRN are recorded with both output and input VAT in the same period. Customs declarations are matched to the FTA's pre populated import figures each period.

Month end VAT close

A reconciliation of the VAT control accounts to the return, a review of unusual tax codes, a check of credit notes and adjustments, and sign off by a reviewer who did not prepare the return.

Record retention

Records must be kept for five years after the end of the tax period, 15 years for real estate, in a form the FTA can access. We define what is kept, where and for how long.

VAT recording and reporting

If no one clearly owns VAT recording, reporting and controls, errors flow straight into your VAT return and financial statements, and inaccurate returns attract heavy penalties. ZS reviews how VAT is recorded and reported in your business, finds more efficient ways to control it and makes sure the processes meet FTA audit requirements.

Procedure review before an audit

If you already have procedures, we test them against a sample of transactions and give you a short report of gaps, ranked by penalty exposure. This is usually the fastest way to reduce risk before an FTA audit notice arrives. Related: VAT implementation plans and accounting services.