Staying compliant with UAE VAT laws is essential for every registered business. Even minor errors in VAT calculations, invoicing, or return filing can lead to penalties from the Federal Tax Authority (FTA). This is where a VAT Health Check becomes crucial.
A VAT Health Check helps businesses identify compliance gaps, strengthen VAT processes, and avoid costly mistakes—ensuring financial accuracy and full alignment with UAE VAT regulations.
What Is a VAT Health Check in the UAE?
A VAT Health Check is a thorough review and assessment of your company’s VAT-related activities, records, and reporting. It examines whether your business is:
- Charging VAT correctly by appropriately classifying nature of supplies including Standard Rated, Zero Rated, Exempt or Out of Scope Supplies
- Claiming eligible input tax (subject to conditions specified in VAT regulations)
- Maintaining proper documentation
- Filing VAT returns accurately and on time
- Applying the correct VAT treatments for supplies
- Complying with Reverse Charge Mechanism (RCM)
- Following VAT record-keeping requirements
The goal is to detect potential risks early and ensure your VAT processes are efficient, accurate, and compliant.
Key Steps Involved in a VAT Health Check
A professionally conducted VAT Health Check includes a structured review process:
1. Review of VAT Registration & TRN Details
Ensuring your registration details and tax obligations align with your business activities.
2. Verification of Tax Invoices & Documentation
Assessment of invoices, contracts, and supporting records for compliance with FTA standards.
3. Review of Output Tax (Sales)
Checking if VAT is correctly charged on taxable supplies and exemptions are properly applied.
4. Review of Input Tax (Purchases & Expenses)
Evaluating input tax claims to ensure only eligible expenses are reclaimed.
5. Analysis of Reverse Charge Mechanism (RCM)
Ensuring imports of goods and services are treated correctly under RCM rules.
6. Review of VAT Return Filings
Examining previous VAT returns (Form 201) for accuracy, consistency, and completeness.
7. Reconciliation of Accounting Records
Matching accounting data with VAT filings to identify mismatches or errors.
8. Identification of Non-Compliance & Risk Areas
Highlighting incorrect VAT treatments, missing documentation, or exposure to penalties.
9. Recommendations & Corrective Actions
Providing clear solutions to fix errors, strengthen processes, and ensure full FTA compliance.
Benefits of Conducting a VAT Health Check
A VAT Health Check provides multiple advantages for businesses in the UAE:
- Avoids penalties and non-compliance issues
- Improves accuracy in VAT calculations and return filing
- Strengthens internal VAT procedures and controls
- Ensures proper input tax recovery and prevents overpayment
- Identifies VAT refund opportunities
- Prepares your business for potential FTA audits
- Reduces financial risks through proactive compliance measures
- Enhances decision-making with clean financial data
Regular VAT Health Checks keep your business protected, compliant, and audit-ready.
How Finexus Advisory Helps You With VAT Health Check
At Finexus Advisory, we offer comprehensive VAT Health Check services conducted by a team of experienced, certified Chartered Accountants with deep knowledge of UAE VAT laws.
Here’s how we support your compliance:
✔ Expert Review by Qualified Professionals
Our Chartered Accountants thoroughly examine your VAT processes, records, and filings to ensure complete accuracy.
✔ Detailed Assessment & Gap Analysis
We identify errors, non-compliance issues, incorrect VAT treatments, and risks that could trigger penalties.
✔ End-to-End VAT System Evaluation
From tax invoices to accounting entries, we review every part of your VAT cycle.
✔ Clear Corrective Action Plan
We provide actionable recommendations to fix errors and streamline VAT procedures.
✔ Support With Voluntary Disclosure (if required)
If material errors are found, we guide you through safe and compliant correction via FTA-approved methods.
✔ Ongoing VAT Advisory & Compliance Support
We help maintain compliance with regular health checks, return filing assistance, and continuous monitoring.
Why Choose Finexus Advisory?
- Skilled team of Chartered Accountants and VAT specialists
- Vast experience across multiple industries
- Strong understanding of UAE VAT regulations
- Practical, business-focused solutions
- Transparent and professional approach
- Commitment to accuracy, compliance, and efficiency
At Finexus Advisory, our expert tax consultants provide comprehensive VAT registration, filing, and advisory services across the UAE. Whether you’re a start-up or an established company, we ensure that your VAT processes are accurate, compliant, and stress-free.
VAT registration
VAT De-registration
VAT return filing
VAT Health Check
VAT Refund
VAT Exception
Need expert advice to analyze your cash flow and determine if the cost of lost Input Tax recovery outweighs the benefit of simpler compliance? Finexus is providing expert services, contact us
