1. FTA Audit Preparation
Businesses must prepare for Federal Tax Authority (FTA) inspections on VAT and Corporate Tax compliance.
- Audit Scope: The FTA reviews VAT filings, tax returns, and financial records to ensure compliance.
- Documentation Requirements: Companies must maintain invoices, tax calculations, and transaction logs for audit readiness.
- Penalty Risks: Non-compliance can result in fines, tax adjustments, or legal consequences.
2. VAT Reconciliations
Businesses must ensure their VAT returns match accounting records and supporting documents.
- Input vs. Output VAT: Companies must reconcile VAT paid on purchases with VAT collected on sales.
- Error Detection: Identifies discrepancies, missing invoices, or incorrect tax calculations.
- Regulatory Compliance: Ensures VAT filings align with FTA guidelines to avoid penalties.
3. Tax Working Papers
Businesses must prepare and maintain proper schedules for tax-related balances and disclosures.
- Supporting Documents: Includes tax provisions, deferred tax calculations, and reconciliation reports.
- Audit Transparency: Well-organized tax papers ensure smooth audit processes and regulatory compliance.
- Financial Accuracy: Proper documentation prevents misstatements and tax disputes.