VAT Audit Services
Registered Tax Agent Regulated by the FTA (Federal Tax Authority)
VAT Audit Services in the UAE
Audit-ready records, maintained year-round, not assembled the week an FTA notice arrives.
VAT audits in the UAE are conducted by the Federal Tax Authority to verify whether businesses are correctly reporting, filing, and paying VAT in line with Federal Decree-Law No. 8 of 2017. Audits may be risk-based, triggered by filing discrepancies, or conducted randomly. Farahat & Co. provides structured VAT audit support to help businesses prepare, respond, and remain compliant.
- Registered FTA tax agent, managing communication and representation throughout the audit process
- Full reconciliation review, checking VAT returns against accounting records before an audit even begins
- Voluntary disclosure support, correcting historical errors before the FTA identifies them
All VAT-registered businesses are required to maintain accurate records and audit-ready documentation at all times, whether or not they’ve been notified of an audit.
Our Specialists In VAT Audit Services
Romany Shayb
Senior VAT Consultant
Ahmad Ali Jourieh
Senior VAT Consultant
Nayomi Jayaweera
VAT Consultant
As a Trusted VAT Consultancy in the UAE, Farahat & Co. Offers the Following VAT Services:
What Is a VAT Audit in the UAE?
A VAT audit is a formal review conducted by the Federal Tax Authority to assess whether a business is complying with UAE VAT law. The FTA examines whether VAT has been correctly applied to transactions, input VAT has been properly claimed, returns have been accurately filed, and records have been appropriately maintained.
The audit typically involves reviewing financial statements, VAT returns, sales and purchase invoices, bank records, and supporting documentation to validate the accuracy of tax reporting. Maintaining well-organised, reconciled, and up-to-date VAT records reduces the risk of penalties, audit complications, and delays in VAT refund processing. Poor record-keeping, even where no intentional error has been made, can attract increased FTA scrutiny and operational disruption. Audit readiness should be treated as an ongoing compliance obligation, not a one-time exercise.
Which Businesses Need VAT Audit Support Most?
VAT audit support is particularly important for businesses where transaction volume, filing complexity, or record quality increases the likelihood of FTA review. It is especially relevant for:
- VAT-registered SMEs and LLCs with regular taxable transactions
- Free zone companies transacting with mainland clients
- Businesses with frequent or high-value VAT refund claims
- Businesses with large volumes of sales and purchase transactions
- Businesses with gaps in bookkeeping or VAT accounting records
Our VAT Audit Preparation Process
A structured approach to audit preparation ensures your records are accurate, complete, and ready for FTA review before an audit is initiated.
- Reconcile all VAT figures against accounting records and general ledgers
- Collect and review invoices, VAT returns, ledgers, and all required supporting documentation
- Identify and correct any gaps or errors in VAT records before the audit begins
- Prepare a comprehensive VAT audit file including supporting schedules and reconciliations
- Organise documentation in a structured format to enable efficient retrieval during the review
- Address any historical filing errors through voluntary disclosure before the FTA identifies them
Documents Required for a VAT Audit
- Trade licence or Certificate of Incorporation
- VAT registration certificate
- Filed VAT returns
- Sales and purchase invoices
- Official bank statements
- Accounting ledger and trial balance
- Customs and import/export documents, where applicable
Under Article 78 of the Federal Decree-Law on VAT, businesses must maintain and be able to provide records including information on supplies and imports, tax invoices and receipts, tax credit notes, information on non-deductible input VAT, export documentation, altered or corrected invoices, and sales documentation showing VAT paid. These records must be retained for a minimum of five years.
Common VAT Audit Mistakes and Risks
The FTA commonly identifies the following compliance issues during VAT audits. Addressing these proactively significantly reduces audit risk:
- VAT returns that do not reconcile with accounting records and general ledgers
- Missing or non-compliant tax invoices that do not meet UAE requirements
- Incorrect application of zero-rating, standard rating, or exemptions
- Input VAT claimed without adequate supporting documentation
- Failure to account for credit and debit notes in VAT filings
- Bank statements that do not reconcile with reported sales and revenue figures
- Missing customs and export documentation for zero-rated supplies
- Late filing of VAT returns or late payment of VAT liabilities
- Returns submitted without proper review, resulting in calculation errors or omissions
Why Choose Farahat & Co. for VAT Audit Support
VAT audits are a compliance reality for UAE businesses, and proper reconciliation, documentation, and audit readiness are essential to avoid penalties, delays, and financial risks. Since 1985, Farahat & Co. has provided VAT auditing services across the UAE.
- End-to-end support: from record-keeping and document preparation through to strategic guidance on audit outcomes
- Proactive compliance strategy: we assess your specific risk areas rather than applying a generic checklist
- Registered tax agents and certified auditors: working closely to ensure records are accurate, complete, and audit-ready
- Established track record: over four decades supporting UAE businesses across audit, accounting, and tax compliance