Tax Audit Support Dubai
17/09/2026
YOUNG AND RIGHT ACCOUNTING & TAX CONSULTANCY
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A VAT audit in UAE is a review of a business's VAT records, returns, transactions and supporting documents to assess whether its VAT reporting and compliance are accurate. The Federal Tax Authority (FTA) may review information such as tax invoices, sales and purchase records, input VAT, output VAT, accounting records and VAT returns.
For VAT-registered businesses in Dubai and across the UAE, maintaining accurate records throughout the tax period is important. Businesses should be able to connect the figures reported in their VAT returns with the underlying invoices, accounting entries and transaction records.
Young and Right provides accounting, VAT and tax support for businesses in Dubai and the UAE, helping businesses organise VAT records, reconcile transactions and prepare for VAT-related reviews.
A VAT audit in UAE is a compliance examination carried out by the FTA to review a taxable person's VAT position and relevant records.
During a VAT audit, the FTA may examine whether a business has correctly:
The scope of an audit can vary depending on the circumstances and the information being reviewed.
The FTA's VAT guidance explains that businesses should maintain sufficient records to allow VAT amounts to be traced from source documents, such as invoices, through to the final VAT return.
VAT compliance is an ongoing responsibility for registered businesses. A VAT audit provides a way for the tax authority to examine whether the business has correctly followed applicable VAT requirements.
For businesses, proper VAT record keeping can help with:
A well-organised VAT system also makes it easier for a business to identify potential errors before submitting its VAT return.
The exact scope of an FTA audit depends on the business and the audit circumstances. However, several areas may be relevant.
The FTA may compare VAT return figures with the business's accounting records and supporting documents.
Sales invoices and transaction records may be reviewed to determine whether supplies have been correctly treated for VAT purposes.
Purchase invoices and other supporting records may be reviewed, particularly where the business has claimed input VAT.
The business may need to demonstrate that input VAT claims are supported by appropriate documentation and meet the applicable recovery requirements.
The FTA may examine whether VAT has been correctly charged and reported on taxable supplies.
Businesses should retain appropriate tax invoices and other relevant VAT documentation.
The FTA states that VAT-registered persons must retain tax invoices and alternative documents received and issued, along with tax credit notes and other specified records.
Accounting information such as ledgers, profit and loss accounts, balance sheets and supporting transaction records may also be relevant.
A business should maintain documentation that supports its VAT position.
Common records include:
Where applicable, businesses may also need customs, import, export and other supporting documentation.
The FTA's VAT guide lists records of supplies and imports, tax invoices, tax credit notes, exports, adjustments and corrections among the records VAT-registered persons should maintain.
VAT-registered businesses generally need to retain the required VAT records for at least five years after the end of the relevant tax period. In certain circumstances, the FTA may require records to be retained for a longer period, including where there is an ongoing tax audit or dispute.
The FTA also states that records should be maintained in a way that allows the Authority to check the information used to prepare a tax return and that records must be readily available in a legible format when requested.
Businesses should also monitor current FTA legislation and record-keeping requirements because UAE tax rules and administrative requirements can be amended.
A VAT return is a periodic tax submission made by a VAT-registered business to report relevant VAT information.
A VAT audit is a review of the business's VAT compliance and supporting records.
For example, a business may submit a VAT return showing:
During an audit, the FTA may examine the invoices, accounting records and transactions supporting those figures.
Therefore, submitting a VAT return is only one part of VAT compliance. Businesses should also maintain the documentation that supports the figures reported.
VAT reconciliation involves comparing VAT information in the accounting system with the VAT return and supporting documents.
A reconciliation can help identify:
Regular reconciliation can make it easier to identify issues before an FTA audit or information request.
Businesses can encounter problems when their VAT records are incomplete or inconsistent.
Common issues include:
A transaction may have been classified incorrectly for VAT purposes.
Input VAT claims may lack appropriate supporting documentation.
The figures in the accounting system may not match those reported in VAT returns.
Input VAT may be claimed without satisfying the applicable requirements.
Businesses may fail to correctly account for VAT on taxable supplies.
Incomplete or poorly organised documentation can make it difficult to demonstrate how VAT figures were calculated.
Differences between bank records, sales ledgers, purchase ledgers and VAT reports can create additional questions during a review.
Businesses can take several practical steps to improve their VAT audit readiness.
Check previously submitted VAT returns and identify unusual figures or unexplained changes.
Compare input VAT and output VAT with the underlying accounting records.
Review sales and purchase invoices for completeness and consistency.
Check whether transactions have been classified appropriately based on the applicable VAT rules.
Maintain invoices, contracts, payment records, customs documents and other relevant evidence in an accessible system.
Check whether VAT adjustments and corrections have been properly recorded and supported.
The accounting records should allow relevant VAT amounts to be traced from source documentation through the accounting system to the VAT return.
Businesses should not assume that an audit or information request will follow a particular process in every case. The applicable procedures depend on the relevant tax legislation and the FTA's communication.
For this reason, businesses should maintain their VAT records continuously and ensure that relevant documents can be retrieved when required.
The FTA's current VAT legislation and guidance should be checked for the applicable procedures and requirements.
The outcome depends on what the FTA finds during its review.
A business may receive requests for additional information or clarification. If discrepancies or non-compliance are identified, the applicable tax assessment or penalty procedures may follow under UAE tax legislation.
Businesses should carefully review any communication received from the FTA and respond within the applicable deadlines.
Where a business disagrees with an FTA decision, it should review the applicable reconsideration or dispute-resolution procedures and obtain professional advice where appropriate.
Young and Right provides accounting and VAT support to businesses in Dubai and across the UAE.
For businesses preparing for a VAT audit, Young and Right can assist with areas such as:
The exact scope of support depends on the business's VAT position and the nature of the FTA review.
For businesses looking for VAT audit support in UAE, maintaining a clear audit trail and organised VAT documentation can help create a more structured compliance process.
Ensure your VAT records, returns, invoices, and supporting documents are accurate and properly maintained. Get professional VAT audit support to identify potential discrepancies, strengthen compliance, and prepare your business for FTA requirements.
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