Why VAT Audit is Required?

VAT is the self assessment tax by the taxable person. FTA accepts any amount reported by Taxable Person and assumes that the reported figures are correct, to check the validity of these reports FTA will come up with VAT Audit. Generally the Taxable person by filing the VAT return assumes that this is the last step of VAT Compliance, but from the FTA point of view this is the first step for them, on the basis of VAT returns FTA issues VAT Audit intimation. FTA issues notices to the taxable person for VAT Audit with specified deadline to intimate them for ready with all the reports and documents, and the date when the Audit will start.

Source: gccfintax.com

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