Assistance in Excise Tax Audit
Facing an Excise Tax audit? Stratify provides expert guidance, ensuring compliance, accurate documentation, and minimal disruptions to your business operations
Excise Tax Audit
Excise Tax Audit is a review conducted by the Federal Tax Authority (FTA) to ensure that businesses dealing with excise goods comply with UAE tax laws. It involves scrutinizing the records, returns, and tax payments of a business to verify whether the correct amount of excise tax has been declared and paid. Businesses involved with excise goods, such as tobacco, energy drinks, and sugary beverages, are subject to such audits.
Process of Excise Tax Audit
The Excise Tax Audit process typically follows these steps
FTA Notification
The FTA informs the business about the audit, specifying the time frame and the scope of the audit
Preparation
The business gathers all relevant documents, including tax returns, invoices, and records of excise goods
FTA Review
FTA auditors will examine the documents provided, validate the tax payments, and check compliance with excise tax laws
Site Visit
The FTA may conduct a site visit to inspect the business premises, stock, and excise goods
Audit Conclusion
Based on the audit findings, the FTA may either confirm compliance or identify discrepancies.
Penalties
In case of non-compliance, penalties or fines may be imposed by the FTA
Documents Required for Assistance in Excise Tax Audit
To successfully navigate an excise tax audit, businesses need to provide the following documentation:
Excise Tax Returns
Copies of all filed excise tax returns for the audit period, showing compliance with periodic filing requirements and accurate reporting of tax liabilities.
Purchase and Sales Invoices
Detailed records of all purchases and sales involving excise goods, providing a clear audit trail of transactions impacting excise tax obligations.
Customs Declarations
Documentation for imported or exported excise goods, required to verify compliance with customs and excise tax regulations on cross-border transactions.
Stock Registers
Comprehensive records of excise goods in stock, including manufacturing, distribution, and storage data, ensuring transparency in inventory management.
Tax Payment Receipts
Proof of all excise tax payments made to the Federal Tax Authority (FTA), validating the business’s adherence to tax payment deadlines and accuracy.
Contracts and Agreements
Relevant contracts with suppliers or customers related to excise goods, aiding in verifying terms of sale, procurement, and distribution.
Warehouse Records
Detailed documentation of excise goods stored in warehouses, if applicable, to provide the FTA with insights into storage practices and inventory levels
How Stratify Can Help You
At Stratify, we offer comprehensive assistance to ensure you are fully prepared for any Excise Tax Audit. Our expert team provides the following services:
Pre-Audit Review
Document Compilation
FTA Communication
We liaise with the FTA on your behalf, handling any queries or issues that may arise during the audit process
Compliance Support
Our team ensures that your business complies with UAE excise tax laws and regulations, minimizing the risk of penalties
Post-Audit Follow-up
After the audit, we assist you in addressing any findings, including resolving discrepancies and avoiding future non-compliance
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Our Other Excise Tax Services
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Stratify Corporate services is an independent and international organisation with a specialization in crafting sustainable solutions and strategies
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Ensure full compliance with UAE’s Value Added Tax regulations through tailored advisory, registration, filing, and VAT health check services.
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Corporate Tax
Navigate UAE’s corporate tax landscape with strategic tax planning, filing, and compliance support to optimize your tax position.
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Excise Tax
We assist businesses in understanding and complying with excise tax regulations, including registration, filing, and audit preparation.
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Accounting Outsourcing
Streamline your financial operations by outsourcing your accounting needs, from bookkeeping to financial reporting, for efficient management.
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Customs
Simplify import-export procedures and ensure compliance with UAE Customs regulations through advisory, registration, and customs reconciliation services.
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Company Formation
Start your business in the UAE with expert guidance on company incorporation, licensing, and compliance with local regulations.
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Audit & Assurance
Our audit and assurance services provide reliable financial insights, ensuring transparency and compliance with regulatory requirements.
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Economic Substance
Anti-Money Laundering
Protect your business by staying compliant with UAE’s AML regulations, with risk assessments, monitoring, and reporting solutions.
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Frequently Asked Questions
What triggers an Excise Tax Audit?
An audit can be triggered by inconsistencies in tax filings, random selection by the FTA, or if the business deals extensively with excise goods.
How often can the FTA audit my business?
The FTA can audit a business within five years of the relevant tax period, but this can be extended in cases of suspected tax evasion.
What happens if I fail to comply with the audit?
Non-compliance can lead to fines, penalties, or further investigations by the FTA.
How long does an Excise Tax Audit take?
The duration depends on the complexity of your business and the scope of the audit. It can take several weeks or longer if issues arise
How can I avoid penalties during an audit?
The best way to avoid penalties is to maintain accurate records, file excise tax returns correctly, and ensure full compliance with UAE tax laws. Our pre-audit services at Stratify help mitigate risks
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At Stratify, we understand the complexities of excise tax compliance and audits. Let us help you ensure that your business is fully compliant and prepared for any audit, saving you from penalties and operational disruptions
