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VAT Voluntary Disclosure Form 211

The Federal Tax Authority (FTA) has introduced a form 211 – VAT voluntary disclosure form. It will help the taxable persons to rectify the errors they committed in their UAE VAT Form 201which is already filed. It is an option given by the FTA for the tax periods to voluntarily disclose the errors one has committed.

This disclosure requirement has nothing to do with your VAT return or voluntary registration. The voluntary disclosure referred to is only to be used in the  circumstances if you later discover an error in a VAT return previously submitted.

What is meant by Voluntary Disclosure under UAE VAT Law?

Every Taxable person has an option to rectify the contents of the VAT Return (Form 201) which were already filed. By using the voluntary disclosure option, the taxable person can rectify the amount of tax disclosed by him previously. One can use the form 211 – VAT voluntary disclosure to inform the authority and rectify the same voluntarily before the authority finds it before a tax audit or through an assessment.

 

 

How to use the VAT Voluntary Disclosure Form 211?

Once the taxable person identifies the error or omission he made in his previous VAT return form 201, he can log in to the official portal of FTA by using their user name and password and access the VAT voluntary disclosure form 211 to rectify.

As shown in the above screen shot, the taxable person can select the respective periods wherein a voluntary disclosure is required by clicking the button submit form 211 to rectify the mistakes.

When can one use VAT Voluntary Disclosure Form 211?

If a taxable person makes an error or omission or a wrong treatment of tax by which the output tax payable or input tax recoverable is more than AED 10,000/- for a particular period then, he must use the VAT Voluntary Disclosure form 211 to inform the authority. The form will show the original figures disclosed under “as reported” and will give an option to edit the amount under separate box named “as current”. Further the reason for such discrepancy also should be disclosed.

Once the newly arrived figures are written in the respective boxes under “as current”, the total tax liability under box number 14 also gets changed. This will be the actual tax liability to be paid to the authority. Further, the taxable person should also upload the supporting documents for such voluntary disclosure. It includes a letter describing the background of the facts and a detailed description of the errors disclosed, the reason for voluntary disclosure as well as the impact on the relevant boxes of the tax return.

Penalty while using the VAT Voluntary Disclosure Form 211?

There are two types of penalties.

  1. Fixed penalty
  2. Percentage based penalty

Fixed penalty – if the tax payer uses the VAT Voluntary Disclosure form 211 for the first time, AED 3,000/- shall be levied. For every repetition in using the VAT Voluntary Disclosure form 211 AED 5,000/- shall be charged.

Percentage based penalty – if the tax payer discloses less than the actual tax liability in the return and subsequently uses Form 211 VAT Voluntary Disclosure form, the percentage-based penalty will be as follows:

  • If the taxable person makes a voluntary disclosure before the authority notifies (by way of tax audit or tax assessment), 5% of the tax amount which was not disclosed earlier will be the penalty.
  • If the authority notifies the taxable person for a tax audit and during the tax audit if he makes a voluntary disclosure by using VAT Voluntary Disclosure Form 211, he will be liable to pay 50% of the tax amount.
  • If the taxable person makes a voluntary disclosure after the authority notifies for a tax audit but before starting the tax audit, he has to pay 30% of the tax amount as a penalty.

What if the difference in tax amount identified is less than AED 10,000/-?         

If a taxable person makes an error or omission or a wrong treatment of tax by which the output tax payable or input tax recoverable is less than AED 10,000/- for a particular tax period, then he need not use the VAT Voluntary Disclosure form 211 to inform the authority. He can rectify such errors in the subsequent VAT Return without a separate disclosure.

For Example:

XYZ LLC is a company registered in Dubai and the tax paid is 1st January 2018 to 31st March 2018 and quarterly thereafter. For the first quarter, the total sale was AED 10,000,000/-  out of which 3,000,000/- was an export and the balance 7,000,000/- was standard rated supply. The total output VAT is AED 350,000/-. Recoverable input tax under standard rated expenses (5,000,000/-) was AED 250,000/-. Hence, net tax payable is AED 100,000/-.

Suppose, XYZ  LLC wrongly filed their VAT Return Form 201 – AED 6,000,000/-  as 5% taxable supply and AED 4,000,000/-  as export. In this case it will be showing AED 50,000/- as net tax payable to the authority.

What will be the penalty under voluntary disclosure scheme?

  1. If voluntary disclosure is filed for the first time without any notification from the FTA then fixed penalty is AED 3,000/- and percentage-based penalty will be AED 2,500/- (5% of AED 50,000/-)
  2. If the authority already sent a notification for a tax audit and if XYZ LLC discloses under VAT Voluntary Disclosure Form 211 before the authority starts a tax audit, then the fixed penalty is AED 3,000/- and percentage-based penalty will be AED 15,000/- (30% of AED 50,000/-).
  3. If the authority already started a tax audit and XYZ LLC discloses under the VAT Voluntary Disclosure Form 211 during the tax audit, then the fixed penalty is AED 3,000/- and percentage-based penalty will be AED 25,000/- (50% of AED 50,000/-)

Every taxable person should file their VAT Return with optimum precision within the time frame specified by the UAE VAT Law which is within 28 days from the end of each tax period. A taxable person should ensure that the VAT Return Filing is processed in a correct manner, so as to limit the frequency of using the VAT Voluntary Disclosure Form 211 to avoid penalties.

I strongly suggest to get your VAT Return filed by licensed tax consultants to avoid penalties and fines from FTA.

Nam Accountants can help you to deal on this matter. For more details and information call us now  : 971-558876440

or

Visit us : http://www.namaccountants.com/vat-consultants-in-uae.html

 

Audit & Assurance Services

Audit Firms in UAE

An audit is all concerning examining and evaluating a company’s monetary statements. Since these records are expected to point out the transactions that are done by the firm, an audit is executed to make sure the accuracy and fairness of those records.

An audit may be performed internally or externally. The previous may be achieved by the organization through facilitating it themselves with their own auditor or normally called ‘internal auditor’. The latter may be accomplished with the help of an auditor from a 3rd party that’s employed by the organization itself.

As one of the auditing firms in Dubai, we know that there are a couple differences between the two that can help you understand fully the two kinds of the audit. Auditors in Dubai prepare an annual financial statement in 3months prior to the end of the financial year.

Types of audit

  1. Internal audit
  2. Statutory Audit
  3. Internal audit

The first kind of audit is an internal audit. This can be the process whereby the activities and operations of the corporate are assessed and analyzed. All of those even the structure of the business and its staff are monitored and examined.

Internal audit is finished by an internal auditor who is from the organization itself with audit and assurance services, whichever is desirable to the organization that wants internal auditing. Internal auditors have broad information with reference to the business systems. They have to be so because they make sure that the approaches that they recommend can help the corporate to be efficient with its operations and flow of business.

  1. Statutory Audit

The scope of the statutory audit is well on the far side the regular auditing method wherever our expert auditors work at the side of you and searching for methods to enhance the work efficiency and productivity. Through our intimate with staff and associate partners, we bring value-addition to the statutory audit requirement.

Advantages Of The Financial Audit For Your Company in Dubai

Auditors in Dubai

Any individual who has a business or a company with many people who are responsible for finishing different tasks may face a risk of error. The audit is the best answer for bringing up every one of these mistakes if you have your company in Dubai. It can be exceptionally gainful for a company as it will improve the productivity of the business. The administration will better understand the working and financial arrangement of their company.

Improves communication:

Generally, higher specializes hand-off on the information which is given to them by the administration. This information is needed to make a crucial decision about the feasible arrangements of the company. There is a high possibility of mistake in the information collected and audit is needed to remove that error. The audited financial statements are imperative for the achievement of an organization because they give accurate and timely data about the financial situation of an organization. The administration will realize that the auditing committee will feature the mistakes

Better management:

Researches show that the organizations that experience the audit procedure are more beneficial and have better administration system when contrasted with the organizations that do not have the yearly financial audit. Determination of a perfect organization which will give the auditing services is a crucial thing for the accomplishment of your business. Experienced auditors have a lot of ability in the field and they will play out the procedure better. They will also enable you to identify the small opportunities which can frame as a major improvement in the near future.

Expert recommendations:

The auditors are prepared in a way that they focus on the fixing and change in the business processes. This procedure will reduce the measure of risk in the financial data. An auditor is a person who will give you the unbiased suggestion apart from his preferences. The organization may apply a few procedures for so long that they end up plainly perilous for the inner control. The auditor will enable you to recognize these type of risks. By keeping away from them, you will have the capacity to build up another and more powerful arrangement of strategies for your business.

AUDITING FIRMS IN DUBAI UNITED ARAB EMIRATES:

Audit Firms in Dubai, silicon oasis, JLT, Jebel Ali free zone, DMCC Dubai, UAE

Nam Associates is a one of the best auditing firm in Dubai, UAE. Our services, in a cost-effective and professional manner. We are proud to announce that we are one of the top most in

Audit and Assurance

We offer the complete range of Audit and assurance services to meet the business needs of the client in this global environment.

This segment is engaged in providing the following services

  • Internal Audit
  • Statutory Audit
  • Other Non-statutory Audit

Non-traditional audit approach to traditional auditing services and a vision beyond numbers

The world is changing – business ideas, interests, measures, innovation and that too at a fast pace. The customary audit approach which tends to concentrate on formal bookkeeping control components also needs a change or if nothing else we have faith in that. The consequences of these audits reviews frequently concentrate on territories considered irrelevant and n turn reflect a deficiency of the approach  – its inclination to concentrate on side effects rather than the genuine causes.

We as auditors tend to look past these conventional components and search for approaches to upgrade the administration’s we give.

Similarly essential, we understand the goals, openings, threats, and difficulties frequently confronted by our customers and help them to investigate the basic circumstances in a strong and comprehensive way.

 

AUDITORS IN UAE

Auditors in Dubai

Nam Accounts is a one of the best auditing firm in Dubai, UAE.Nam Accountants assist our clients to accomplish their goals by providing highest quality services in accounting, audit and related professional services in UAE. As an Auditors in UAE.The auditing is dividing into three types,

  1. Internal audit
  2. Statutory Audit
  3. Other Non-statutory Audit

The company management is responsible for the appointment of an external auditor. The main benefits of choosing right auditor is,

  • External audits assess its risk-management policies.
  • External audits help to deter fraud.
  • An external audit helps an organization to assess the state of its business
  • Appointing the right external auditors will ensure a thorough task of the company.

audit firm in dubai

AUDIT FIRMS: DUBAI, UAE

Audit Firms in DubaiNam Accountants help our customers fulfill their goals by giving highest quality services in audit, accounting, bookkeeping and related services. As the best auditing firm in Dubai and as a business set up specialists, we provide a solution for the Company set up, LLC Company Formation, Business setup in DMCC Dubai, company formation in UAE, company formation in free zones, branch, representative offices, offshore, free zones or mainland companies. We understand that expert way to deal with the customers’ necessities in an exceptionally responsive and with individual regard for each customer is profitable to our common achievement.

We are proud to announce that we are one of the top most in

Audit and assurance

The Auditing in the companies can be divided into three types, it depends on the owner of the business hat which sort he requires for his organization.

  • Internal Audit
  • Statutory Audit
  • Other Non-Statutory Audit

Auditors in Dubai

Internal Audit

This auditing service which gives independent assurance that an organization’s risk management, internal control processes, and governance are operating effectively.

Statutory Audit

Statutory Audit is same as any other audit. It conducted to ensure that all the financial details of the company are perfect without any scam.

Non-Statutory Audit

This includes auditing of non-corporate entities such and associations. It is a process of review and verification of a company’s business and it is not required by any law or statute.