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VAT Audit Services in Dubai
Get a thorough examination of your company’s VAT accounting practices and return filings
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Is Your Business VAT Compliant?
Comprehensive VAT Audit for Your Business in Dubai
Ensure compliance with the FTA’s guidelines on document management, tax collection, payment, and input tax claims.
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Need Assistance during a VAT audit in Dubai?
Look no further than Beaufort Associates, an accounting, tax, and advisory firm led by a UK Chartered Accountant with Big 5 experience.
Why Choose Our VAT Audit Services in Dubai?
Some key advantages of opting for our VAT audit services:
- Expert-led review
- Accurate documentation checks
- Practical compliance guidance
- Actionable reports
Understanding VAT Audits in Dubai, UAE
What is a VAT Audit in Dubai?
A VAT audit is a review conducted by the Federal Tax Authority (FTA) to verify whether a person has complied with the Tax Procedures Law and the applicable VAT rules. During an audit, the FTA may review VAT returns, accounting records, invoices, electronic records, assets and supporting documents.
The FTA generally gives at least 10 business days’ notice before conducting a tax audit, except in specific cases permitted by law. Businesses and their representatives are required to provide facilities and assistance to the tax auditor during the audit.
Legal Reference
Federal Decree-Law No. (28) of 2022 on Tax Procedures, Articles 16, 17, 20 and 21
Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures, Articles 15, 16, 17 and 18
Documents Commonly Relevant for a VAT Audit in Dubai
Documents commonly relevant to a VAT audit may include:
- Filed VAT returns and VAT tax records
- Issued and received tax invoices, tax credit notes and supporting documents
- Sales, purchase, import and export records
- Customs declarations and supplier invoices for imports
- Records of purchases where input tax was not deducted
- Records of corrections or adjustments to accounts or tax invoices
- Accounting records, commercial books and electronic accounting data
- Any additional records requested by the FTA for the audit scope
Legal Reference
Federal Decree-Law No. (8) of 2017 on Value Added Tax, Article 78
Cabinet Decision No. (52) of 2017 on the Executive Regulation of Federal Decree-Law No. (8) of 2017 on Value Added Tax, Articles 71 and 72
Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures, Article 17
Federal Tax Authority Decision No. (4) of 2026 on the Rules and Requirements for Maintaining the Information Contained in Accounting Records and Commercial Books, Articles 2, 3 and 4
How Can a Professional VAT Audit Service Provider Help?
There are several key areas that the FTA focuses on during a VAT audit. VAT experts like Beaufort Associates can help you ensure these areas are in order:
Evaluation of VAT Returns: We meticulously compare your filed VAT returns to your accounting records to guarantee accuracy and consistency.
Input Tax Assessment: We closely examine your input tax claims to ensure you’re not claiming blocked inputs or non-recoverable taxes.
Output Tax Evaluation: Our team ensures that zero-rated, exempted, and standard-rated taxes are calculated correctly as per UAE tax regulations.
Accounting System and Software: We advise on using compliant accounting software to minimize errors and streamline VAT return filing.
What Our VAT Audit Review Covers
Our VAT review follows the movement of tax information from the underlying transaction to the accounting ledger and the filed VAT return. We select procedures appropriate to the identified risks and agreed engagement scope; a review is not a guarantee that every error will be detected.
VAT Return-to-Ledger Reconciliation
We reconcile reported output VAT and input VAT to sales and purchase ledgers, tax control accounts and relevant general ledger balances. Unexplained adjustments, manual journals and differences between VAT periods are identified for investigation. Where relevant, we trace selected amounts to invoices, credit notes and payment records.
Output VAT and Supply Classification Testing
We examine selected sales transactions to assess the application of standard-rated, zero-rated, exempt or out-of-scope treatment. The review considers supporting contracts, invoices, evidence of the place and nature of supply, and the tax point used for reporting. Particular attention is given to exceptional transactions and material manual adjustments.
Input VAT Recovery Review
We test selected input VAT claims against supplier tax invoices, the nature and purpose of expenditure, and the applicable recovery restrictions. Where a business makes both taxable and exempt supplies, we consider whether an input tax apportionment methodology is relevant and properly supported. The review also addresses expense categories that may be blocked or subject to special rules. For transactions to which the rules effective from 1 October 2026 apply, we also consider supplier and supply verification requirements and the updated conditions for recovering VAT on certain employee expenses.
Imports, Reverse Charge and Cross-Border Transactions
We compare selected import entries, customs information and supplier documentation with accounting records and VAT return reporting. The review considers reverse charge obligations for relevant imported goods and services, and whether evidence supports the VAT classification of cross-border transactions. Different rules can apply depending on the transaction facts. For transactions subject to the 2026 VAT amendments, we also consider the supporting documentation required when the reverse charge mechanism applies.
Credit Notes, Adjustments and Prior-Period Errors
We review credit notes, cancellations, discounts, bad debt adjustments and material journal entries for consistency with the underlying evidence and VAT reporting. Where discrepancies are found, we assess the nature of the error and recommend further evaluation of the applicable correction or voluntary disclosure procedure. Whether a voluntary disclosure is required must be assessed separately under the applicable correction rules and the facts.
VAT Records, Digital Audit Trail and Internal Controls
We assess whether the business can retrieve the records needed to support filed VAT returns, including invoices, transaction listings, tax reconciliations and accounting system exports. We also examine practical control gaps, such as inconsistent tax codes, missing review evidence and undocumented manual changes. Record retention periods depend on the relevant law and circumstances.
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Frequently Asked Questions
A VAT audit is a review conducted by the Federal Tax Authority (FTA) to verify compliance with the VAT Law and Tax Procedures Law. It may include reviewing VAT returns, tax invoices, accounting records, electronic records and supporting documents for relevant tax periods.
Legal Reference
Federal Decree-Law No. (28) of 2022 on Tax Procedures, Article 16
Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures, Article 17
The FTA may conduct tax audits to verify whether a person has complied with the Tax Procedures Law and the VAT Law. Before deciding to audit, the FTA may consider factors such as protecting the tax system, compliance responsibility, expected tax revenue and administrative burden.
Legal Reference
Federal Decree-Law No. (28) of 2022 on Tax Procedures, Article 16
Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures, Article 15
Not necessarily. A VAT audit notice does not automatically mean there is a confirmed error. It means the FTA is reviewing the relevant VAT records, so the business should be ready to explain and support the figures submitted.
Legal Reference
Federal Decree-Law No. (28) of 2022 on Tax Procedures, Articles 16, 17 and 20
Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures, Article 17
No. An FTA VAT audit is an official examination carried out by the Federal Tax Authority under the Tax Procedures framework. A private VAT compliance review is a professional assessment of a business’s records, filings and controls, performed to identify possible issues and improve audit readiness.
Disclaimer: This page sets out our understanding of VAT audits based on the legislation and guidance in force at the date of last review. The position may change, and the application to a particular set of facts may require further analysis. Nothing on this page constitutes professional, legal or tax advice. Beaufort Associates accepts no liability for action taken or not taken in reliance on this page. Please contact us for advice tailored to your circumstances.
Sources
Primary sources referenced on this page:
- Federal Decree-Law No. (8) of 2017 on Value Added Tax, as amended.
- Cabinet Decision No. (52) of 2017 on the Executive Regulation of Federal Decree-Law No. (8) of 2017 on Value Added Tax, as amended.
- Federal Decree-Law No. (28) of 2022 on Tax Procedures, as amended.
- Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures, as amended.
- Cabinet Decision No. (40) of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE, as amended.
- Federal Tax Authority Decision No. (4) of 2026 on the Rules and Requirements for Maintaining the Information Contained in Accounting Records and Commercial Books.
- Federal Tax Authority VAT Guide | Taxable Person | VATG001, used as practical support for VAT record examples where relevant.
We have referenced the legislation in force as at the last review date. The UAE tax framework is evolving; later changes may affect the position. Speak with us for advice on your specific circumstances.
Reviewed by: Mian Muneer ud din, Managing Partner - UK Chartered Accountant (FCA from ICAEW) with 35 plus years of experience
Last reviewed: 28 Oct 2026 · Next scheduled review: 28 April 2027
This page does not constitute professional advice. See our full Terms of Use.
