Will I be asked to produce any additional documents in case of an audit?
Besides the mandatory records and books of accounts, a business owner may be asked to provide additional documents like general ledger, annual accounts, VAT ledger, purchase day book, and invoices that have been issued and received. The business owner should keep an electronic copy of the original documents and records as mandated by the FTA.
According to the laws laid down by the FTA, business owners should maintain an accurate FTA Audit File (FAF) to be handed over to the tax auditor. An FTA Audit File (FAF) is a master file that contains all the necessary data to assess if a business is VAT compliant or not. If you’re using accounting software, it’s advisable to make sure that the software is capable of generating an FTA Audit File (FAF) when needed. Ideally, it’s generated during the tax return period in an invoice-level format and it should be in the (.csv) format. The FAF should contain the following information:
- Details regarding the firm: This includes company information like the Tax Registration Number (TRN), the name of the business owner in English and Arabic. If you choose to file your returns through a tax agency, then you should provide details like the Tax Agency name, Tax Agent’s name, Tax Agency Number (TAN), and Tax Agency Approval Number (TAAN).
- Supplier details: This includes the name and location of the supplier (by country or Emirate), and the Tax Registration Number (TRN) of the supplier, if applicable.
- Customer details:This includes the name and location of the customer (by country or Emirate), and the Tax Registration Number (TRN) of the customer, if applicable.