What Causes an FTA Tax Audit in the UAE?
Every business in the UAE must meet tax requirements. If a company doesn’t comply, the FTA can choose to audit the business. The management must ensure that every tax task runs smoothly and accurately. When a company ignores its tax duties, it might face penalties or heavy fines.
The following factors often cause FTA tax audits:
Common Factors That Lead to FTA Tax Audits
1. Ignoring Registration or Deregistration Rules
A company must follow all tax registration and deregistration laws. If a business skips, delays, or ignores these rules, the FTA may start a tax audit or give a penalty.
2. Missing or Delayed VAT Returns
When a company doesn’t file its VAT returns on time, it risks non-compliance. Mistakes or delays in returns, wrong transaction categories, or using the wrong VAT treatments will all increase audit risk.
3. Incorrect Tax Invoices and Credit Notes
Companies must create tax invoices and credit notes in the exact format required by VAT law. Wrong or incomplete documents are a common audit trigger.
4. Weak Supporting Documents for Voluntary Disclosures
If a company submits a voluntary disclosure (an update to a previous VAT return), it must attach full supporting papers. Weak, missing, or unclear documents can raise a red flag for auditors.
5. Signs of Tax Evasion or Suspicious Activity
If the FTA notices unusual patterns or possible tax evasion, it will likely start an audit to check for mistakes or fraud.
Records to Keep Ready for FTA Tax Audit
To pass an audit, every company should keep these important records:
- Company policies and procedures for tax management
- A list of tax mapping for all transactions
- Tax invoices and credit notes for every supply and purchase
- Documents showing imports and exports
- Calculations and files for each VAT return and disclosure
- VAT registration and deregistration certificates
- Any other papers that the FTA or law might request
Stay Updated with FTA Guidelines and Training
Businesses must stay up to date with new rules and updates from the FTA. You should always read the latest FTA circulars, notices, and publications. Employees should join tax training sessions regularly. Training helps staff understand new rules and apply the right compliance steps in their work.
Mubarak Al Ketbi (MAK) Auditing shares the latest tax updates and helps businesses follow every FTA requirement. With this guidance, you can avoid most common compliance mistakes.
Why Choose Mubarak Al Ketbi (MAK) Auditing for Tax Support?
Mubarak Al Ketbi (MAK) Auditing gives expert tax advice. The team can check your VAT compliance and review your tax records. The specialists support companies with:
- Regular VAT compliance reviews
- Timely tax accounting and reporting
- Answers to your tax questions
- Guidance for organizing company records
- Preparation for FTA audits
- Sharing all FTA updates and changes
How Mubarak Al Ketbi (MAK) Auditing Can Help You
If you don’t want to get caught off guard, let Mubarak Al Ketbi (MAK) Auditing support your tax compliance journey. The expert team helps you build a solid process to avoid audit risks and fines.
- Expert VAT and tax compliance advice
- Review and organization of your records
- Timely alerts about FTA rules and circulars
- Support for FTA audit preparation
- One-hour free consultation for new clients
For more information:
- Visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
- Contact/WhatsApp: +971 50 276 2132
