FTA audit readiness review
A mock audit of VAT and corporate tax records, finding issues before the FTA does.
Tax Audit Services in the UAE: FTA Tax Audit Support, Readiness Reviews and Audits for Corporate Tax
A UAE tax audit is a review by the Federal Tax Authority of a business's VAT, excise or corporate tax records to confirm returns are correct. The FTA can audit at its office or your premises and can generally assess tax for five years after a tax period. SGA World helps businesses prepare for FTA audits, files voluntary disclosures and provides audited accounts for corporate tax.
- Ministry of Economy and Tourism approved auditor
- 500+ clients
- Dubai & Abu Dhabi
"Tax audit" means two different things in the UAE, and businesses often need help with both:
1. An FTA tax audit: the Federal Tax Authority reviews your VAT, excise or corporate tax records to check your returns. 2. An audit for corporate tax: the statutory audit of your financial statements that corporate tax rules require for some companies.
SGA World provides tax audit services in the UAE for both. We run FTA audit readiness reviews, support you during an FTA audit, prepare voluntary disclosures to correct errors, and provide the audited financial statements needed for corporate tax. Tax representation before the FTA is provided through our associate, Saif Chartered Accountants, an FTA-registered tax agency.
- VAT, excise and corporate tax
- FTA audits
- General period the FTA can assess
- 5 years
- Find and fix errors first
- Readiness
- For QFZPs and revenue above AED 50m
- Audited accounts
At a glance
Tax Audit Services: Key Points
- Law: FTA tax audits follow the Tax Procedures Law (Federal Decree-Law No. 28 of 2022, as amended).
- Time limit: the FTA can generally audit and assess within 5 years of the end of a tax period; an audit notice can extend this.
- Records: keep accounting and tax records for at least 5 years for VAT and 7 years for corporate tax.
- Voluntary disclosure: correcting errors before an audit notice usually means lower penalties.
- Corporate tax audit: audited financial statements are required for QFZPs and companies with revenue above AED 50 million.
- Representation: provided through Saif Chartered Accountants, an FTA-registered tax agency.
Our services
What Do Our Tax Audit Services Include?
Support during an FTA audit
Preparing information, reconciliations and explanations requested by the FTA.
Voluntary disclosures
Correcting errors in filed returns and calculating the tax and penalties.
Reconsideration requests
Challenging FTA assessments or penalties with a reasoned request.
Audits for corporate tax
Statutory audits for QFZPs and companies above AED 50 million revenue.
Transfer pricing support
Documentation for related-party transactions the FTA may review.
FTA tax audits
What Happens During an FTA Tax Audit?
An FTA tax audit usually follows these stages:
1. Notice: the FTA notifies the business of the audit and the period covered; routine audits are generally notified in advance. 2. Information request: the FTA asks for records such as ledgers, invoices, contracts, customs documents and reconciliations. 3. Review: auditors examine the records at the FTA's office or at your premises, and may ask questions. 4. Findings: the FTA shares its findings and may issue a tax assessment and administrative penalties. 5. Response: the business can accept, or file a reconsideration request and, if needed, escalate to the tax dispute resolution bodies.
Well-organised records and a clear audit trail make each stage faster and reduce the risk of assessments.
What the FTA checks
What Does the FTA Usually Review in a Tax Audit?
| Area | What the FTA looks at | Common issue |
|---|---|---|
| Output VAT | Sales, tax invoices and VAT treatment | Wrong rate or missing supplies |
| Input VAT | Purchase invoices and recovery | Blocked expenses claimed, no valid invoice |
| Imports and reverse charge | Customs records and imported services | Reverse charge not reported |
| Zero-rating | Export evidence | Missing proof of export |
| Corporate tax | Taxable income and adjustments | Non-deductible items not added back |
| Related parties | Pricing and disclosures | No arm's length support |
How we work
How Do We Support You Through a Tax Audit?
Step01
Assess
Review the FTA notice, scope and deadlines.
Step02
Reconcile
Reconcile returns to the ledgers and identify any errors.
Step03
Prepare
Organise the documents and explanations the FTA requests.
Step04
Correct
Prepare voluntary disclosures where errors are found.
Step05
Respond
Support meetings and responses through our associate tax agency.
Step06
Close
Review findings and, where appropriate, prepare reconsideration requests.
Why SGA World
Why Choose SGA World for Tax Audit Services?
Auditors who know what the FTA looks for
We test your records the way an FTA auditor will, before they do.
Ministry-approved audit firm
SGA World is a Ministry of Economy and Tourism approved audit firm, so our reports are accepted where it matters.
Audit and tax in one team
Auditors, VAT, corporate tax and transfer pricing specialists work together, so nothing falls between advisers.
Qualified chartered accountants
A team of chartered accountants qualified in India and the UK, focused on UAE rules.
500+ clients
Mainland and free zone companies, from start-ups and SMEs to regional groups.
Listed with major UAE banks
Our audit work is recognised by major UAE banks for facilities and account reviews.
Audits for corporate tax
Which Companies Need Audited Accounts for Corporate Tax?
Under the corporate tax rules, audited financial statements are required for:
- Qualifying Free Zone Persons, whatever their revenue, to keep the 0% rate;
- taxable persons with revenue above AED 50 million in the tax period.
The audited accounts are the starting point for the corporate tax computation, so the audit should be planned well before the 9-month filing deadline. See our external audit and corporate tax registration and filing services.
Worked example
Example: A Readiness Review Before an FTA VAT Audit
A Dubai distributor received an FTA notice covering two years of VAT returns.
Our readiness review found:
- AED 85,000 of input VAT claimed on staff entertainment, which is blocked;
- reverse charge not applied on imported marketing services;
- export sales zero-rated without complete proof of export for some shipments.
The company filed a voluntary disclosure for the errors it could fix, gathered export evidence for the rest, and entered the audit with reconciled returns. The final assessment was limited to the disclosed amounts, avoiding larger penalties.
What to prepare
What Records Should You Have Ready for a Tax Audit?
Returns
VAT, excise and corporate tax returns for the periods under review.
Ledgers
General ledger, sales and purchase ledgers, and trial balances.
Invoices
Tax invoices, credit notes and supplier invoices.
Customs
Import and export declarations and shipping documents.
Contracts
Key customer, supplier and related-party agreements.
Reconciliations
Returns reconciled to the books, with explanations.
Fees and timing
How Much Do Tax Audit Services Cost?
Fees depend on the taxes and periods under review, transaction volume, the quality of records, the number of FTA requests and whether disclosures or reconsideration requests are needed. Readiness reviews are usually a fixed fee; audit support may be fixed or time-based. FTA deadlines are short, so contact us as soon as a notice arrives.
Avoid problems
Common Mistakes in an FTA Tax Audit
Ignoring the FTA deadline
Penalties and assessments on incomplete information
Sending unreconciled data
Raises more questions
Not correcting known errors first
Higher penalties
Missing export evidence
Zero-rating denied
Blocked VAT claimed
Assessments and penalties
No one coordinating the response
Inconsistent answers
Tax audit desk
Prepare for an FTA Tax Audit With Confidence
Received an FTA notice, or want to check your position first? Tell us the taxes and periods involved.
We handle
- Readiness reviews
- FTA audit support
- Voluntary disclosures
- Reconsideration requests
- Audits for corporate tax
Location: Dubai & Abu Dhabi
Talk to Our Team
Our offices in Business Bay, Dubai and Al Bateen, Abu Dhabi support clients across the UAE.
Dubai
Office 1923, The Exchange Tower, Business Bay, Dubai
Abu Dhabi
Khalidiya Towers M-B6, W10, Al Bateen, Al Khalidiyah, Abu Dhabi
Talk to an auditor
Tell us your company type, jurisdiction and deadline. We will confirm the scope, timeline and fee.
- WhatsApp us+971 50 627 3556
- Call us+971 4 570 1795
- Email us[email protected]
- Book an appointmentChoose a time that suits you
Prefer a form? Send us a detailed enquiry.
Who prepared this page
Written and reviewed by SGA World's audit and tax team
This guide is prepared by chartered accountants at SGA World Auditing Accounting L.L.C S.P.C in Business Bay, Dubai, a Ministry of Economy and Tourism approved audit firm, and checked against Federal Tax Authority legislation and guidance. It is reviewed whenever the rules change.
- Last reviewed 14 October 2026
- Chartered accountants from India and the UK
- FTA representation through Saif Chartered Accountants
Have a question about your company?
Tell us your activity, jurisdiction and deadline. A chartered accountant will reply.
Ask an expertFrequently asked questions
Tax Audit Services – FAQs
Short answers to the questions UAE businesses ask us most. Still unsure?
Talk to our team01.What is an FTA tax audit?
A review by the Federal Tax Authority of a business's tax records to confirm that its VAT, excise or corporate tax returns are correct.
02.How far back can the FTA audit?
Generally up to five years from the end of the relevant tax period. Where the FTA issues an audit notice, the period can be extended so the audit can be completed.
03.Will the FTA tell us before a tax audit?
Routine audits are generally notified in advance. In exceptional cases, such as suspected evasion, the law allows audits with shorter or no notice.
04.Where does an FTA tax audit take place?
At the FTA's office or at the business's premises, depending on the case.
05.What happens after an FTA tax audit?
The FTA shares its findings and may issue a tax assessment and penalties, which the business can challenge through a reconsideration request.
06.What is a voluntary disclosure?
A formal correction of an error in a filed tax return. Filing it before an audit notice usually results in lower penalties.
07.Which companies need audited accounts for corporate tax?
Qualifying Free Zone Persons and taxable persons with revenue above AED 50 million.
08.How long must tax records be kept?
At least five years for VAT and seven years for corporate tax, in a form the FTA can review.
09.Can SGA World represent us before the FTA?
Tax representation is provided through our associate, Saif Chartered Accountants, an FTA-registered tax agency.
10.What is a tax audit readiness review?
A mock audit that reviews your records and returns the way the FTA would, so errors can be corrected first.
11.Can FTA penalties be reduced?
Penalties may be reduced through timely voluntary disclosures or challenged through a reconsideration request where there are grounds.
12.What should we do when an FTA notice arrives?
Note the deadline, gather the records requested, reconcile returns to the books and get advice before responding.
References:Federal Tax Authority · UAE Ministry of Finance · UAE Legislation portal — reviewed 14 October 2026
