Receiving an audit notification from the Federal Tax Authority (FTA) can be a challenging experience for any business. Whether your company operates in Dubai or elsewhere in the UAE, an FTA audit requires careful preparation, accurate documentation, and a thorough understanding of UAE tax regulations.
At VAT Accounting UAE, we assist businesses in preparing for VAT audits by reviewing tax records, organising supporting documentation, responding to FTA information requests, and providing professional guidance throughout the audit process. Our objective is to help businesses manage audits efficiently while maintaining compliance with UAE tax legislation.
We provide audit assistance to businesses across Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Fujairah, Umm Al Quwain, and the rest of the UAE.
What Is an FTA VAT Audit in UAE?
An FTA VAT audit is an examination conducted by the Federal Tax Authority to verify whether a taxable person has complied with the UAE VAT Law and related regulations.
During an audit, the FTA may review:
- VAT returns
- Tax invoices
- Tax credit notes
- Accounting records
- Import and export documentation
- Bank statements
- Contracts
- Purchase records
- Sales records
- Supporting financial documents
The purpose of the audit is to confirm that VAT has been calculated, reported, and paid correctly.
Why Businesses Receive FTA Audit Notifications
An FTA audit does not necessarily indicate wrongdoing. Businesses may be selected for audit for various reasons, including:
- Routine compliance reviews
- Random selection
- Significant VAT refund claims
- Inconsistencies in VAT returns
- Large changes in taxable turnover
- Industry-specific compliance initiatives
- Previous compliance concerns
- Information received from other government authorities
Each audit is assessed independently by the Federal Tax Authority.
What to Expect During an FTA Audit
The audit process generally includes several stages.
Audit Notification
The FTA issues an official notification informing the business of the upcoming audit.
Document Request
The business is asked to provide relevant accounting and tax records.
Review of Records
FTA officers examine financial records and supporting documents.
Clarification Requests
Additional explanations or documentation may be requested where necessary.
Audit Findings
The FTA completes its review and issues its findings.
Where applicable, businesses may receive recommendations, assessments, or administrative penalties in accordance with UAE tax legislation.
Documents FTA Auditors Typically Request
Preparing documentation in advance can help the audit process proceed more efficiently.
Common documents include:
- VAT Registration Certificate (TRN)
- VAT Returns
- General Ledger
- Trial Balance
- Sales Invoices
- Purchase Invoices
- Credit Notes
- Debit Notes
- Bank Statements
- Customs Documentation
- Import and Export Records
- Contracts
- Payroll Records (where applicable)
- Fixed Asset Register
- Accounting Software Reports
Additional records may be requested depending on the business and the scope of the audit.
Tax Records Required: 5-Year Retention Rule
Under UAE VAT regulations, businesses are generally required to maintain relevant tax records for the prescribed retention period.
These records typically include:
- VAT returns
- Tax invoices
- Accounting books
- Import documentation
- Financial statements
- Supporting tax calculations
Proper record retention helps businesses respond efficiently during an FTA audit.
How We Prepare Your Business for an FTA Audit
Our consultants provide practical support before the audit begins.
Our services include:
- Reviewing VAT compliance
- Identifying potential documentation gaps
- Organising financial records
- Reviewing VAT calculations
- Checking invoice compliance
- Preparing supporting schedules
- Assisting with FTA document requests
- Coordinating with your finance team
Early preparation can reduce unnecessary delays during the audit process.
Audit Support & Representation
During the Audit: Our Professional Support
Throughout the audit process, we assist by:
- Coordinating responses to FTA requests
- Preparing supporting documentation
- Explaining VAT transactions
- Assisting during meetings with auditors
- Responding to technical tax queries
- Supporting ongoing communication with the FTA
If the audit identifies issues, we can also advise on available compliance measures and administrative reconsideration options where applicable.
FAQ's
An official review conducted by the Federal Tax Authority to verify VAT compliance.
No. An audit does not automatically lead to penalties. Outcomes depend on the audit findings and the facts of each case.
Yes. We assist with reviewing records, organising documentation, and supporting businesses throughout the audit process.
The duration varies depending on the complexity of the business, the volume of records, and the scope of the audit.
Yes. We support businesses in Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Fujairah, Umm Al Quwain, and throughout the UAE.