What Drives the Cost of a VAT Health Check

A VAT review fee follows the work inside the scope

The FTA does not publish a standard private fee for a VAT health check. Its VAT legislation and guidance explain the return, records and tax treatment. The amount a consultant quotes instead follows the work requested: periods, transaction volume, ledgers, imports, reverse-charge entries, credit notes and unresolved corrections.

A useful quote names the records to be tested and the handover you will receive. It should say if the work covers one return or several, one entity or a group, a clean pre-filing check or correction support. The phrase ‘VAT review’ is not a scope by itself.

If you are deciding between quotes, ask each provider to mark the same return fields and documents. You can then compare work, exclusions and responsibility. If your records are not ready, say so. The condition of the file is part of the work, not a detail to hide until the review starts.

Transaction volume is only one cost driver

The first driver is the number of periods and entities. A quarter for one ledger is a different assignment from several periods across separate accounting systems. The reviewer must understand each cut-off, map tax codes and confirm that the VAT control account is not mixing unrelated postings.

Imports and overseas services add document matching. Credit notes add a second trail because the original invoice and reason for adjustment must be found. A correction from an earlier return adds decision work, since the affected period, original figure, corrected figure and tax difference have to be set out before a route is chosen.

We prefer a written scope before any price discussion, because it shows what the fee is buying. A low number with no period, record list or handover is not a comparison. Ask for the number of ledgers, return fields, samples or full-population checks, and correction work stated plainly.

• Tax period and legal entity stated before the quote is compared with another.
• Separate accounting systems listed with the exports each system must provide.
• Import, reverse-charge and credit-note work shown as distinct review activities.
• Correction support stated separately from the pre-filing reconciliation and handover.

Pay for a defined output, not a vague promise

The review scope should name the source records, reconciliations and exception handling. It should say if the work includes sales cut-off, purchase invoices, credit notes, imports, reverse charge, tax-code review and a final meeting. It should also identify work outside the assignment, such as rebuilding incomplete books or resolving a disputed contract.

The client supplies the return, ledgers, VAT control accounts, invoices, credit notes, customs files and a list of known issues. The consultant then tests the evidence and records what is missing. The FTA remains the authority for the return and the business remains responsible for the figures it submits.

Example only: a draft return shows AED 75,000 of output VAT and AED 28,000 of input VAT, so the draft payable amount is AED 75,000 - AED 28,000 = AED 47,000. If AED 3,000 of input is unsupported, recoverable input becomes AED 25,000 and the payable amount becomes AED 50,000. The example shows why correction work can change the assignment even when the ledger is closed.

• Return, trial balance and VAT control accounts supplied in matching period formats.
• Sales, purchase, credit-note and import records grouped by the agreed period.
• Known errors listed with the source document and affected return field.
• Handover format agreed before testing begins, including unresolved evidence requests.

The quote should expose the work before it starts

Ask for a short scope sheet attached to the quote. It should identify the tax period, entity or VAT group, accounting systems, records expected, tests performed and final deliverables. If sampling is used, the quote should say what is sampled and how exceptions are handled. If every transaction is checked, that should be stated too.

The table below gives a useful way to read a quote. It links a scope signal to the work it creates and the evidence the client should prepare. The exact fee is still a commercial matter between the parties. The point is to make the work comparable before a purchase decision.

A written boundary also protects the handover. It prevents a correction list from being mistaken for a rewritten ledger, and it prevents a record request from being mistaken for FTA approval. Keep the signed scope with the return file so the basis of the review is clear later.

No official source can price a file it has not seen

The FTA VAT pages confirm filing obligations, tax records and return treatment. No official FTA source gives a private consultant rate card or defines one universal health-check package. That is the boundary of the evidence. A provider who gives a precise fee without asking for the return and source pack is making a commercial assumption, not quoting from the FTA.

The same distinction applies to outcomes. A consultant can identify unsupported input, reconcile figures and prepare a correction list. The service does not become an FTA decision, a registered Tax Agent opinion or a statutory audit. The quote should say what advice is included and which approval remains with the business.

At the decision point, send the latest VAT return, trial balance, sales and purchase ledgers, import file and known exception list. Ask for a scope that names the work, the documents still needed and the handover. That gives you information about the price drivers without inventing a fee the facts cannot support.

• No fixed number should conceal missing records, extra periods or correction work.
• No quote should call an FTA requirement a private consultant deliverable.
• No handover is complete without open documents and named owners.
• No price comparison works until each provider marks the same review boundaries.