VAT Compliance Audit Services
A VAT compliance review looks at what you have already filed, the way an FTA auditor would. It finds under declared output tax, wrongly claimed input VAT and invoice errors while they are still cheap to fix.
- 1% a monthSelf correction
- 15% + 1% a monthIf the FTA finds it first
- At least 5 yearsRecords kept
How it works in the UAE
Since April 2026 the penalty gap between correcting an error yourself and having the FTA find it is wide: a voluntary disclosure costs 1% of the tax difference per month, while an error found after an audit notice carries a fixed 15% on top. A review before the FTA calls is the cheapest insurance a VAT registered business can buy.
We sample transactions across every return period, test them against the law and your contracts, and give you a written report with the tax effect of each finding and how to fix it.
What the service includes
VAT return review
Each filed return is reconciled to the general ledger and sales and purchase reports.
Transaction and record analysis
We test samples of sales and purchases for rate, place of supply and timing.
VAT documentation review
Tax invoices, credit notes and contracts are checked against the legal requirements.
Input and output VAT review
Blocked input tax, apportionment and reverse charge entries are tested.
Compliance risk assessment
Each finding is rated by tax at stake and penalty exposure.
FTA readiness support
We prepare voluntary disclosures and an audit file you can hand to an FTA auditor.
Who it is for
- Businesses that have filed returns without a specialist review
- Companies preparing for a sale, investment or bank review
- Anyone who has received an FTA query
- Businesses with mixed, exempt or zero rated supplies
How we work with you
Scoping
We agree the periods and areas to test.
Fieldwork
We review returns, ledgers and documents.
Findings
You receive a report with the tax effect of each issue.
Correction
We file voluntary disclosures and fix the process behind each error.
Documents we usually need
- All filed VAT returns
- General ledger and trial balance
- Sales and purchase registers
- Samples of tax invoices and credit notes
- Key customer and supplier contracts
We confirm the exact list after a short review, as requirements vary by authority and case.
Why early correction matters
| Situation | Penalty |
|---|---|
| Incorrect return not fixed in time | AED 500 |
| Voluntary disclosure of an error | 1% of the tax difference for each month |
| Error found by the FTA before you disclosed it | 15% of the tax difference, plus 1% a month |
| Required records not kept | AED 10,000, AED 20,000 for a repeat |
Source: Cabinet Decision No. 40 of 2017 on administrative penalties, as amended by Cabinet Decision No. 129 of 2025 (in force 14 April 2026). Checked November 2026. Rules change, so we confirm the position for your case.
Questions we hear often
How is a VAT compliance audit different from an FTA audit?
Ours is private and on your side. It follows the same tests, but the results come to you first so you can correct errors through voluntary disclosure.
How far back should the review go?
Usually all open periods. The FTA can generally assess tax up to five years after the end of a tax period, longer in cases of evasion.
What is a voluntary disclosure?
A form filed on EmaraTax to correct an error in a past return or refund claim. It is required when the error exceeds AED 10,000 of tax.
How long does a review take?
For a typical SME, two to four weeks depending on volume and how quickly records are available.
Related services
Get a fixed quote for vat compliance audit
Tell us a little about your business. We will reply within one business day with what is needed, the timeline and a fixed fee.
- Straight answers from qualified accountants and tax agents
- Fixed fees agreed before we start
- Office in Al Fahidi, Dubai, and support across the UAE
An adviser will be in touch shortly. For anything urgent, message us on WhatsApp or call +971 56 505 9557.