Introduction
Every company in the UAE must follow tax rules. The government collects tax to build roads, support health care, and grow the economy. A tax audit is one way to check if companies follow the rules. The Federal Tax Authority (FTA) conducts the audit to see if a business pays the right tax at the right time.
A tax audit looks at accounts, records, and VAT filings. It helps to stop fraud and ensures compliance. Choosing an approved auditor makes the process smoother. Since January 2018, when VAT was introduced in the UAE, all registered businesses must keep accurate records for a tax audit.
Importance of a Tax Audit in UAE
A tax audit protects the government and the business at the same time. For companies, it ensures accuracy in VAT filing. For the FTA, it confirms compliance. An audit brings many benefits:
- Avoids costly penalties
- Allows reimbursement of input tax
- Helps reclaim VAT on imported goods under Reverse Charge Mechanism
- Reduces errors in VAT returns
- Improves credibility of the business and builds goodwill
Core Purpose of Tax Audit
An auditor’s main duty is to check the accuracy of tax reports. The core purposes are:
- Inspecting business premises
- Reviewing financial documents inside the premises
- Checking company assets and accounting methods
- Confirming VAT return filing records
This ensures that all financial and tax processes stay transparent.
Pre-Tax Audit Requirements
Before an audit starts, a company must prepare well. A business needs to:
- Follow UAE tax laws and VAT rules
- Keep updated accounting and bookkeeping records
- Retain invoices, ledgers, and receipts safely
- Maintain proper VAT return filing reports
- Be ready to show all documents to auditors
If a business doesn’t follow these points, the FTA can apply penalties. That’s why companies choose an approved firm like Mubarak Al Ketbi (MAK) Auditing for compliance support.
Process of a Tax Audit in UAE
1. Receiving the Notice
The FTA issues an official notice to start the audit. It includes:
- The premises for inspection
- Parties involved in the audit
- Date and time of audit
Auditors must also show credentials before starting.
2. Commencement of Audit
The auditor checks financial books, VAT returns, and supporting documents. During this step, auditors may request extra records. Businesses can review auditor IDs before allowing access.
3. Completion of Audit
The audit happens during business hours. Once finished, the auditor prepares a draft report.
4. Drafting Results
The report includes:
- Key observations
- Errors or penalties
- Audit rankings
- Guidance for corrections
The FTA has the right to order a re-audit if required.
Role of Mubarak Al Ketbi (MAK) Auditing
Mubarak Al Ketbi (MAK) Auditing is one of the trusted firms in Dubai for tax audits. The team ensures smooth audit handling and proper VAT compliance. Our auditors help businesses by:
- Preparing accurate VAT return filings
- Offering clear training for staff on tax rules
- Filing VAT with complete documentation
- Reviewing each entry for accuracy
- Advising on long-term tax planning
Besides tax audit support, we also provide:
- CFO advisory services
- Accounting and bookkeeping outsourcing
- Due diligence checks
- Payroll management
- Accounting software solutions
What Can Help – Mubarak Al Ketbi (MAK) Auditing
Mubarak Al Ketbi (MAK) Auditing supports businesses with tax audits, VAT filing, and compliance checks. Our experts give reliable advice and clear reports to guide your company.
- Visit us at: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
- Call or WhatsApp: +971 50 276 2132
