A VAT Audit in the UAE is a comprehensive and structured examination conducted by the Federal Tax Authority (FTA). This audit serves to evaluate whether a business complies with the Value Added Tax (VAT) regulations established under the UAE VAT Law. The primary goal of the VAT audit is to ensure that businesses are correctly managing their VAT obligations, including charging, collecting, and remitting VAT as required by law.
This meticulous process involves a detailed review of a business's financial records, VAT returns, tax invoices, and other supporting documentation. The FTA aims to validate that VAT is being accurately applied on taxable supplies, zero-rated supplies, exempt supplies, and imports or exports, as applicable to the nature of the business.
Any business that has registered for VAT with the FTA and meets the criteria for VAT audit.
All VAT-registered businesses in the UAE, regardless of size or industry, may be audited by the Federal Tax Authority (FTA) to ensure compliance with VAT laws, including correct tax collection, reporting, and record-keeping.
Businesses with high revenues, frequent VAT refund claims, inconsistent filings, or complex transactions involving mixed supplies are more likely to undergo targeted audits. Industries such as real estate, retail, and e-commerce often face higher scrutiny.
The FTA also conducts random audits to monitor compliance across sectors and investigates non-registered businesses exceeding the mandatory VAT threshold of AED 375,000 to identify potential cases of non-compliance or tax evasion.
We provide expert VAT audit services to help your business navigate the complexities of VAT compliance. Our services include:
To comply with a VAT audit, businesses must provide:
