Blog Single

The FTA is auditing more businesses than ever. Whether it’s VAT, Corporate Tax, or Excise Tax — audits are now a real operational risk for UAE businesses.

Here’s exactly what happens, what triggers an audit, and how to be ready.

What Triggers an FTA Audit?

• Inconsistencies between VAT returns and financial statements
• Large or unusual refund claims
• Industry-wide compliance campaigns (the FTA runs sector sweeps)
• Tip-offs or complaints from third parties
• Random selection — yes, it happens
• Late filings or payment history

The Audit Process: Step by Step

Step 1: Notice of Audit
The FTA issues a formal notification. You’ll receive it via EmaraTax. It will state the tax period(s) under review and the type of tax.

Step 2: Document Request
The FTA will request records including: VAT returns and workings, tax invoices (issued and received), import/export documents, accounting records, bank statements, contracts.

You typically have 5 business days to respond to initial requests.

Step 3: The Audit Visit (or Desk Review)
Some audits are conducted remotely (you upload documents via EmaraTax). Others involve FTA officers visiting your premises.

During a visit: Be professional. Have everything organised. Designate one person (ideally your accountant or tax consultant) as the point of contact.

Step 4: Findings and Assessment
If the FTA finds discrepancies, they’ll issue an Assessment. You’ll receive details of the additional tax liability and any penalties proposed.

Step 5: Objection (if needed)
You have 20 business days to object to an assessment by filing with the FTA. If that fails, you can escalate to the Tax Disputes Resolution Committee (TDRC).

Common Audit Findings

• Underreported output VAT (missing invoices)
• Overclaimed input VAT (blocked items, missing invoices)
• Wrong treatment of zero-rated or exempt supplies
• Failure to account for reverse charge on imported services
• Incorrect period reporting

How to Be Audit-Ready at All Times

• Reconcile your VAT return to your accounting records every quarter before filing
• Keep all tax invoices — physical and digital — for minimum 5 years
• Maintain a VAT filing calendar and never miss a deadline
• Conduct an internal VAT health check annually
• Appoint a qualified tax agent

Facing an FTA audit or want a pre-audit health check? FSH Financial Consultants provides full FTA audit support. Contact us at info@fshconsultants.com