Expert VAT Audit Support Services in UAE (Dubai)
Facing an FTA VAT Audit? We provide comprehensive assistance to manage the process smoothly and protect your interests.
Get Audit Support NowWhat is a VAT Audit in the UAE?
A VAT audit in the UAE is a systematic examination conducted by the Federal Tax Authority (FTA) to verify the accuracy of your VAT returns and ensure compliance with UAE VAT regulations. These audits aim to validate that businesses are correctly implementing VAT procedures, maintaining proper documentation, and remitting the correct tax amounts.
The FTA typically initiates audits based on risk assessments, discrepancies in returns, or as part of routine compliance checks. The process generally follows these steps:
Initial Notification
You'll receive an official notice from the FTA informing you about the audit, its scope, and the initial information required.
Information Requests
The FTA will request specific documentation, including VAT returns, supporting invoices, accounting records, and other relevant financial data.
Field Visits & Verification
Tax auditors may conduct on-site visits to inspect your business operations, verify physical assets, and examine original documents.
Findings & Assessment
After reviewing all information, the FTA issues a preliminary findings report, which may include assessments for additional tax, penalties, or recommendations for compliance improvements.
VAT audits may be comprehensive, examining all aspects of your VAT compliance, or focused on specific areas such as input tax recovery, zero-rated supplies, or particular tax periods where discrepancies have been identified.
Potential Challenges During an FTA VAT Audit
VAT audits present various challenges for businesses in the UAE, which can impact operations, finances, and compliance standing if not managed properly.
Time & Resource Intensive
VAT audits require significant time commitment from your finance team and management, often disrupting normal business operations.
Complex Information Requests
The FTA may request extensive documentation spanning several years, which can be challenging to compile, especially if your record-keeping has gaps.
Technical Interpretation Issues
Disputes often arise from differing interpretations of VAT legislation, especially in complex areas like partial exemption or international transactions.
Potential Penalties
If errors or non-compliance are identified, substantial penalties can be imposed, ranging from 5% to 300% of the tax amount depending on the nature of the violation.
Precedent Setting
How you handle one audit can set precedents for future audits, making it crucial to approach each audit professionally and carefully.
Financial Impact
Beyond potential tax assessments, there may be administrative penalties for errors, late submissions during the audit process, or accounting corrections required.
Comprehensive Assistance Throughout the VAT Audit Lifecycle
Our end-to-end VAT audit support services ensure you navigate FTA audits efficiently and effectively
Pre-Audit Preparation & Review
We conduct thorough health checks of your VAT records, identify potential risk areas, and prepare documentation proactively before the FTA inspection.
Audit Management & Representation
Our experts act as your primary point of contact with the FTA, managing information flow, attending meetings, and representing your interests throughout the process.
Responding to FTA Queries
We assist in preparing clear, accurate, and timely responses to FTA information requests and inquiries, ensuring you provide appropriate information.
Reviewing Audit Findings
Our specialists analyze the FTA's preliminary findings, identifying areas of agreement or disagreement and preparing strategic responses.
Negotiation & Dispute Resolution
We assist in discussions with the FTA regarding findings and potential penalties, and advise on reconsideration or appeal processes if necessary.
Post-Audit Compliance
Our team helps implement any required corrective actions identified during the audit and establishes robust procedures to prevent future issues.
How We Support You During a VAT Audit
Our structured approach ensures no detail is overlooked during the audit process
Initial Consultation & Audit Scope Review
We begin by understanding the FTA's audit notice, assessing the scope and focus areas, and reviewing your current VAT position.
Strategy Development & Preparation
Based on our assessment, we develop a tailored approach to managing the audit, preparing necessary documentation and organizing your records.
Active Audit Management & Communication
We coordinate with the FTA auditors, manage information requests, attend meetings, and ensure all communications are handled professionally.
Findings Analysis & Response
Once the FTA issues preliminary findings, we analyze them in detail, prepare comprehensive responses, and develop appropriate strategies.
Resolution & Closure
We work towards an optimal resolution, negotiating where appropriate, and ensuring the audit concludes with clear actions and minimal impact.
Proactive Steps to Prepare for an FTA VAT Audit
The best defense against audit complications is preparation. Even if you haven't received an audit notification, taking these steps can help ensure you're always audit-ready.
Maintain Accurate Records
Keep comprehensive VAT records including invoices, credit notes, import/export documentation, and proof of compliance with the 5-year retention requirement.
Regular Compliance Reviews
Conduct periodic internal reviews of your VAT processes, calculations, and filings to identify and address potential issues before the FTA does.
Seek Professional Guidance
Engage VAT specialists to conduct pre-audit health checks, review your compliance framework, and advise on areas where your business may be at risk.
Pre-Audit Review Service
Our pre-emptive VAT audit review identifies potential compliance issues and prepares your business to confidently handle an FTA audit if it occurs. This service includes a comprehensive review of your VAT records, risk assessment, and practical recommendations for improvement.
Request Pre-Audit ReviewWhy Engage Inlex Partners for Your VAT Audit
Minimize disruption to your business operations during the audit process
Ensure accurate and appropriate responses to FTA inquiries and information requests
Leverage expert knowledge of UAE VAT law and FTA audit procedures
Potentially reduce penalties through proactive management and strategic negotiation
Receive objective assessment and professional representation with the tax authorities
Manage communication effectively between your team and the FTA auditors
"Our team has successfully supported numerous clients through FTA audits, helping them navigate the process with minimal business disruption and optimal outcomes."
VAT Audit Support: Common Questions
Find answers to commonly asked questions about our comprehensive business solutions.
Facing an FTA Audit? Get Expert VAT Audit Support Today
Don't navigate an FTA audit alone. Our tax specialists can help you manage the process efficiently, protect your interests, and achieve the best possible outcome.
Contact our VAT audit specialists directly:
Email Us
office@inlex-partners.com
Call Us
+971 52 956 8390
+971 52 956 8390