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A VAT audit is an official review of your company’s VAT returns and related financial records, conducted by or in accordance with the Federal Tax Authority (FTA) in the UAE. The goal is to verify whether your business is complying with UAE VAT laws and whether tax has been calculated, reported, and paid accurately.
Since the introduction of VAT in 2018, businesses in the UAE are legally required to:
Reconcile input and output tax correctly
Our external audit services follow globally accepted auditing standards and UAE regulations.
We provide:
We conduct a thorough review of your previous returns and records to spot red flags and fix discrepancies before FTA notices them.
We ensure all required documents (invoices, receipts, credit notes, import/export proofs) are organized and reconciled with your returns.
We guide you through FTA procedures and prepare your team for inquiries, documentation requests, and financial justifications.
If you’ve made errors in previous filings, our consultants assist in filing Voluntary Disclosures or Tax Reconsideration Forms as required.
The FTA can conduct surprise audits without prior notice. The best way to avoid financial and legal consequences is to perform periodic VAT audits through certified professionals.
Our VAT audit services are highly recommended for:
Ensuring your business is audit-ready can save you from costly penalties and compliance risks. Here are key steps every UAE-registered business should take:
Your accounting system should be capable of generating tax-related documents such as tax invoices, credit notes, VAT returns, and audit trails. Using FTA-accredited accounting software enables you to meet regulatory requirements and easily produce records upon request.
A robust internal control system ensures consistent compliance with VAT regulations. It supports timely filing, regular reconciliation, review of tax reports, and reduces the risk of misstatements or late submissions.
Under UAE VAT law, businesses must maintain all relevant financial records for at least five years after the end of the related tax period. These include:
Proper documentation is essential for a smooth audit process.
Late filing or delayed tax payments are among the most common VAT violations. Ensure returns are submitted before the due date and tax liabilities are cleared promptly to avoid fines or interest.
While not every business is audited, the Federal Tax Authority (FTA) reserves the right to conduct a VAT audit of any registered entity at any time to ensure compliance with UAE VAT laws.
VAT audits are conducted directly by the Federal Tax Authority (FTA) or its authorized representatives. Businesses can also hire licensed tax agents or audit firms to perform internal VAT health checks to ensure readiness before an official audit.
There is no fixed schedule. An FTA VAT audit can occur at any time, often without prior notice. The authority may conduct the audit at your business premises or request electronic/document-based submissions.
The Federal Tax Authority (FTA) is the official government body responsible for regulating, managing, and facilitating VAT audits and overall tax compliance in the UAE.
Under UAE VAT Law, companies are required to retain all relevant VAT documents for at least five years from the end of the tax period to which they relate. For real estate businesses, this duration extends up to 15 years.
When reviewing financial accuracy, businesses often encounter two terms: Financial Audit and Forensic Audit. Though both involve examining records, their purpose and approach differ significantly.
As a registered business under UAE VAT law, being prepared for a VAT audit is not just recommended — it’s critical. Here’s what you need to know to stay ahead and avoid costly surprises.
The UAE’s FTA doesn’t need a reason to conduct a VAT audit — but certain red flags significantly increase your chances. Here’s what to avoid:
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