The certification of the excise tax that is a responsibility of a taxable person for a specific Tax period is known as Excise Tax Audit.  It is an assessment of the checking of responsibilities that must be reported properly and paid within the payable date or not. In normal circumstances, Federal Tax Authority will convey five days earlier notice to the taxable person regarding Tax Audit. A surprise visit can be expected from the Tax Auditor of the top audit firm in UAE at any time in the case of suspected Tax Evasion.

The Scope of Excise Tax Audit in the UAE

It can carry out Tax Audit at any time whenever it feels necessary to do so. In order to carry out Tax Audit, two options are there

  • The premises related to the taxable person can either be visited by the Tax Audit
  • Or they can be called to the offices of the Federal Tax Authority

Who will be audited?
Federal Tax Authority will find out who should be audited and at what period. A person who has listed for Excise tax or believed to be registered for Excise Tax will get audited at the judgment given by the authority. It will be determined by the Tax Auditor based on the possible risk predicted by the Federal Tax Authority on behalf of tax evasion or errors. Do you want to consult registered Tax agent in UAE Click Here

Excise Tax Audit conducts
The Tax Auditor will prove the documents, records, premises of the taxable person and so forth, to check the correct taxable situation of the taxable person during the course of Tax Audit. The Tax Auditor has the right to get a copy or the original documents, goods or samples for their additional analysis. The tax auditor has the right to cooperate with the people of the company in various divisions similar to accounts, logistics, and store housekeeper etc., to understand the production and confirm certain dealings.

The record that needs to be maintained under UAE Excise Tax
There are certain records that need to be firmly maintained by a taxable person concerning Tax Audit.

  1. Records of all imported, created or stocked Excise Goods.
  2. Records of Excise Goods that comes under export.
  3. Verification of exported Excise Goods.
  4. Records of stock levels.
  5. Complete records of destroyed or lost Excise Goods.
  6. Tax Record on behalf of Due Tax on imported Excise Goods.
  7. Tax Record on behalf of Due Tax on produced Excise Goods.
  8. Tax Record on behalf of Due Tax on those Excise Goods that have been stored.
  9. Evidence regarding deductible tax:
    a) The tax that is paid on exported Excise Goods.
    b) The tax that is paid on Excise Goods basic to another Excise Good which is or is subject to tax.
    c) Amounts paid to the Federal Tax Authority mistakenly.

Authorities of a Tax Auditor
The Tax Auditor can ask for original records, samples of goods and copies of records during the course of a Tax Audit. These records include the invoices, tax calculation sheet and so forth.

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