Tax audits are carried out by the Federal Tax Authority (FTA) based on the Tax Procedures Law (Federal Decree-Law no. 7). This involves the examination of commercial records and any data generated by the taxable persons conducting business in the UAE. During a tax audit, the FTA makes sure that the taxpayer is complying with the provisions of the UAE VAT Law as well as the UAE Tax Procedures Law. The main objective of a tax audit is to ensure the taxable person has paid all the liability and every tax due will be collected and provided to the government within the set time period.
The FTA need not give any specific reason to conduct Tax Audit on an entity. However, it will issue a notice about the audit at least five days beforehand. Thus, it is advised that the entity maintains all records and prepares itself for an audit.
As a VAT advisor, DARTC can assist you in preparing and maintaining the required documents for VAT audit, ensuring everything is in compliance with the laws and regulations, and following the standards defined by law before VAT audit is conducted by the FTA.