VAT Audit

Our VAT Health Check and Compliance services assist in identifying potential errors and non-compliance issues concerning VAT. Our goal is to identify areas for improvement, offer recommendations to mitigate risks, and enhance compliance to prevent penalties.

VAT Audit in the UAE: Prepare Yourself
A VAT audit in the UAE is conducted by the Federal Tax Authority (FTA) to examine the commercial records of businesses. It can occur at the business premises or the FTA’s offices, usually with prior notice. Taxpayers and their representatives must cooperate with FTA auditors. This audit is essential for verifying VAT liability, ensuring compliance with UAE VAT and Tax Procedures Laws, and confirming the settlement of outstanding taxes.

VAT Compliance Assurance
Why is a VAT Audit Necessary?
VAT operates on a self-assessment basis, meaning taxpayers are responsible for determining the correct amount of tax payable and recoverable input tax based on their business transactions during a specific period. To verify the accuracy of self-assessed declarations, the FTA employs tax audit procedures.

VAT Audit serve as a means to assess whether businesses are correctly fulfilling their VAT obligations and adhering to the law, ultimately contributing to a fair and equitable tax environment for all parties involved.

During an audit, if discrepancies are identified that result in underpayment of VAT or over-claiming of input VAT deductions, the FTA issues an assessment notice, demanding payment of the outstanding VAT along with associated penalties.