On this page
- What you need to know now
- Treat the 2019 announcement as historical context
- Reconstruct the return from the underlying records
- Review exceptions and missing evidence openly
- Control the response and retain what was submitted
- A practical way forward
- Frequently asked questions
- Official sources & further reading
What you need to know now
This 2019 audit announcement is historical. For a current FTA review, organise the records behind each return, reconcile the figures and respond to the specific notice and period under review.
The original annual announcement is retained below; it does not establish a current audit timetable or selection policy.
- Keep the notice, correspondence and response dates together.
- Reconcile returns to the general ledger and supporting transactions.
- Identify missing records and unresolved differences before responding.
Treat the 2019 announcement as historical context
The original article discusses the early years of UAE VAT and an audit programme reported at that time. Its examples do not establish a current selection policy, notification period or audit timetable. For a present review, read the actual FTA notice and identify the taxpayer, tax and periods covered.
Create a notice summary before gathering documents. Record what has been requested, the response date, delivery channel and person authorised to communicate. This keeps the team focused on the real request rather than assembling unrelated records because an old article lists them. Obtain advice promptly where the scope or procedure is unclear.
Reconstruct the return from the underlying records
An audit file should allow a reviewer to trace a reported figure back to the ledger and source transaction. Start with the return workpaper, then identify the reports and adjustments used to produce it. Explain differences between revenue in the financial statements and sales reported for VAT rather than expecting the totals always to match without qualification.
Prepare schedules for material areas such as imports, exports, credit notes and input-tax claims. Each schedule should state the source, period and reconciliation method. A collection of invoices without an index is less useful than a clear trail showing which documents support the amounts under review.
Review exceptions and missing evidence openly
Identify gaps before submitting the file. A missing contract, an unexplained tax code or a difference in customs data should have an owner and an investigation note. Keep original records and distinguish a later explanation from a document created at the time of the transaction.
For example, if a customer credit was issued after the reporting period, explain when and why it arose and how it was treated. Do not force the original period to agree by removing the difference. A documented chronology helps the adviser assess whether a correction, further evidence or a different explanation is appropriate.
Control the response and retain what was submitted
Agree who prepares, reviews and authorises the response. Check that entity names, periods and totals are consistent across the explanation and attachments. Save the submitted version and confirmation, then track subsequent questions against the same issue register so that answers do not contradict earlier information.
After the review, address the underlying process weaknesses rather than only closing individual requests. Better invoice routing, reconciliation ownership or tax-code approval may prevent the same issue recurring. An organised file supports an accurate response, but it does not guarantee that no assessment will be made.
YOUR NEXT STEPS
A practical way forward
- 01
Understand the request
Identify the taxpayer, tax, periods, records requested and the response deadline in the actual notice.
- 02
Prepare the evidence
Assemble ledgers, returns, invoices, contracts, reconciliations and explanations for material differences.
- 03
Review the response
Check completeness and consistency, agree responsibilities and retain the submitted version and confirmations.
CLEAR ANSWERS
Frequently asked questions
Does this article describe the current audit programme?
No. It records a 2019 announcement. Current action should follow the relevant FTA notice and legislation.
Does a complete file guarantee no assessment?
No. A well-organised evidence file supports an accurate response, but the outcome depends on the facts and applicable rules.
Read the original article First published 2 January 2019 · retained for context
This earlier article is preserved for context. Its rates, deadlines, approvals and announcements may have been superseded. Use the current guidance and official references on this page for your next step.
Firms should be ready for audits in 2019
Tax audits 2019: UAE businesses should be ready for tax audits by the FTA in order to check their resources and accuracy of record-keeping.
The FTA has been sending notifications to companies that they will be audited five working days after the date of the e-mail sent to them, for January 1, 2018-to-April 30, 2018 and May 1, 2018-to-July 31, 2018 tax periods.
VAT audit can be a huge upheaval for anyone who is not prepared and maintained tax records in compliance with guidelines issued by the FTA.
The businesses must prove that every expense claimed within the business is legitimate and their appropriate documents are in place. Besides expenses, each revenue is accounted for accurately and due tax is calculated and paid on timely basis.
The FTA has increased its focus on VAT compliance for businesses in recent months and issued guidelines to matters of concerns to clear out the position. Recently, there has also been a request by a few businesses for tax audits covering between one to two tax periods.
Tourist VAT refund:
The UAE launched the first phase of the tourist VAT refund scheme on November 18, allowing visitors to claim VAT refund on the purchases made in the UAE from the country’s three busiest airports – Dubai, Abu Dhabi and Sharjah – while flying out of the country within 90 days.
From December 16, phase two was rolled out from seven other locations: three airports – Al Ain International Airport, Al Maktoum International Airport and Ras Al Khaimah International Airport; two sea ports – Zayed Port in Abu Dhabi and Port Rashid in Dubai; and four land ports – Al Ghuwaifat Border Post in Abu Dhabi, Hili Border Port and Al Madheef Border Crossing in Al Ain and Dubai’s Hatta Border Exit.
By December 10, the total number of retail outlets linked to the refund scheme had reached 6,903 with 3,800 digital transactions on average being processed daily.
The UAE expects to generate Dh12 billion in revenues through VAT in 2018 and Dh20 billion in 2019, helping the government to diversity its revenues away from the petrodollars as decline in crude prices prompted the UAE, and other oil-producing nations, to look at alternatives amidst volatility in prices.
However, the UAE rolled back VAT on investments made in precious metals such as gold, silver and platinum, used in trade in accordance with internationally-accepted standards with a purity of 99 per cent or more.
Imposed as part of the framework agreed upon by the GCC states, certain segments in key sectors such as healthcare, education and transport were exempted under the new tax regime.
VERIFY THE DETAIL
Official sources & further reading
- FTA — Current tax legislation
- FTA — Maintaining Corporate Tax supporting records
- FTA — Decision 4 of 2026: accounting records and commercial books
Source checks support this general guide. Your treatment depends on the facts, tax period and applicable legislation.
