Tax audit in Dubai · VAT review and FTA support
Preventive review of VAT and Corporate Tax compliance, early risk detection and preparation for inspections by the Federal Tax Authority, with Spanish-speaking support. Peace of mind and security for your company.
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Four types of tax audit.
VAT Tax Audit.
We review the correct application of VAT in the UAE: filed returns, accounting records, supporting documentation and compliance with applicable rates.
Preventive Audit.
We analyse your tax position before any official inspection exists. We identify risks, propose corrections and bring you back to full compliance.
Preparation for the FTA.
When an inspection is already scheduled: preparation of the file, document review and technical support throughout the Federal Tax Authority visit.
Internal Audit.
We evaluate your internal tax processes to ensure proper controls: invoicing flows, internal controls, document archiving and segregation of duties.
How we carry out the tax audit.
Six structured steps: from the initial analysis of your structure to post-audit corrective support.
- 01
Initial analysis
We assess your tax structure and the applicable tax obligations based on your licence, activity and registered address.
- 02
VAT return review
Verification of the correct application of VAT in invoices, filed returns and associated accounting records.
- 03
Records verification
Analysis of issued and received invoices, account reconciliation and verification of supporting accounting documentation.
- 04
Risk identification
Detection of potential errors, inconsistencies or future penalties before they materialise.
- 05
Audit report
Presentation of findings and specific recommendations, prioritised by financial impact and likelihood of penalty.
- 06
Corrective support
Advisory on remediation: amended returns, reconciliation with the FTA and adjustments to internal processes.
Benefits of a tax audit.
Regulatory compliance
Ensures your company is aligned with current local tax regulations and recent FTA updates.
Penalty prevention
Anticipates contingencies that could lead to automatic fines, interest and cumulative administrative penalties.
FTA readiness
If the FTA initiates an inspection, your company is already prepared: documentation in order, returns reviewed, risks mitigated.
Tax optimisation
Identification of legitimate optimisation opportunities: unused deductions, incorrectly applied rates, possible exemptions.
Operational peace of mind
You free up management bandwidth to focus on the business, knowing that taxation is under control.
Financial credibility
Improves reputation with banks, investors and partners. A documented audit as proof of sound tax governance.
What we detect through the audit.
Incorrect rate application, omitted transactions, calculation errors or returns filed outside the deadline.
Invoices that do not meet formal requirements, absent contracts, insufficient export evidence.
Late returns trigger automatic fines that accumulate quickly. The FTA does not excuse delays.
Confusing exports, zero-rating and exemption creates distortions in the return and in input VAT recovery.
The FTA publishes updates regularly. Failing to follow them means applying outdated rules and facing penalties.
Imports, intra-UAE services and transactions with designated Free Zones have specific reverse-charge rules.
Who should get audited?
Companies with a TRN.
All VAT-registered companies should conduct periodic tax audits to stay ahead of FTA inspections.
Free Zone QFZP.
Companies seeking Qualifying Free Zone Person status need rigorous audits to maintain the 0% Corporate Tax regime.
International Companies.
Cross-border operations, imports and exports: areas with greater VAT complexity and higher error risk.
Before an inspection.
If the FTA has announced an inspection or you detect irregularities, an urgent audit allows you to correct issues before the official examination.
Documentation analysed.
Tax documentation
- VAT returns
- All returns filed in the audited period.
- Corporate Tax return
- Annual return filed with the FTA.
- ESR Reports (2019-2022)
- Notifications and reports only if the audit covers financial years between 2019 and 2022; ESR repealed by Cabinet Decision 98/2024 from 2023.
- Tax records
- Official books required under UAE regulations.
Accounting documentation
- Issued invoices
- Representative sample with formal verification.
- Received invoices
- Justification of deducted input VAT.
- Contracts
- Commercial contracts and tax clauses.
- Bank statements
- Reconciliation with accounting records.
- Additional documentation
- Any document required by the FTA.
Tax audit with LorcaBase.
We combine FTA experience with a holistic perspective. We do not just audit: we bring you back to full compliance and prepare you for the future.
Tax auditors
Team with experience in VAT reviews, Corporate Tax and complex cross-border cases.
Remote process
Most of the audit is carried out remotely through secure channels. Minimal operational disruption.
Actionable report
Findings prioritised by impact, with concrete recommendations and clear next steps.
Remediation
If errors are detected, we file amended returns and represent you before the FTA where appropriate.
Holistic view
Coordinated with accounting and taxation: one firm, one point of contact, one complete perspective.
Reports in your language
All reporting in Spanish or English. No approximate translations in a field as technical as taxation.
Complement with these services.
Corporate taxation.
Corporate Tax, VAT, QFZP, economic substance and transfer pricing with a comprehensive and preventive approach.
Discover → XIX · VATVAT Registration.
FTA VAT registration processing: mandatory threshold 375K AED, voluntary from 187.5K AED.
Discover → XVIII · AccountingFull accounting.
Monthly closings, IFRS, financial reporting and QFZP substance, FATCA, CRS compliance.
Discover → XII · CorporateCorporate solutions.
Visas, banking, licences and ongoing administrative management for companies in the UAE.
Discover →Key terms of tax audit in Dubai.
Quick reference of the concepts you will encounter during a tax audit or FTA inspection in the UAE.
Tax Audit▸
Tax audit carried out by the FTA. Reviews records, returns and supporting documentation to validate VAT and Corporate Tax compliance.
FTA▸
Federal Tax Authority. UAE Federal Tax Authority. Competent body for VAT and Corporate Tax. Collects, audits and penalises.
VAT▸
Value Added Tax. UAE VAT at 5% on goods and services. Mandatory registration above 375,000 AED in annual sales or voluntary from 187,500 AED.
Corporate Tax (CT)▸
Corporate Income Tax of 9% on profits above 375,000 AED. In force since June 2023.
TRN▸
Tax Registration Number. Tax registration number assigned by the FTA upon VAT or Corporate Tax registration. Mandatory on invoices and returns.
Voluntary Disclosure▸
Procedure before the FTA to regularise errors or omissions in filed returns. Reduces penalties if filed before inspection.
Tax Assessment▸
Tax assessment issued by the FTA after an inspection. Determines the amount owed in taxes, penalties and interest.
Tax Reconsideration▸
Administrative procedure to request the FTA to review a tax decision. 40-business-day deadline from notification.
Statute of Limitations▸
Tax statute of limitations. In UAE the FTA may audit up to 5 years back (15 years in case of tax evasion).
Tax Records Retention▸
Legal obligation to retain accounting and tax records for 5 years (7 years for real estate).
Administrative Penalty▸
Administrative penalty issued by the FTA. Fixed or percentage amounts based on infringement (late registration, errors, non-payment).
IFRS▸
International Financial Reporting Standards. Mandatory accounting framework in UAE to prepare financial statements that serve as the Corporate Tax base.
QFZP▸
Qualifying Free Zone Person. Regime for Free Zone companies meeting substance requirements and qualifying activities. Allows maintaining 0% Corporate Tax on qualifying income.
ESR▸
Economic Substance Regulations. Regulations that between 2019 and 2022 required certain companies to demonstrate real economic activity in the UAE. Repealed by Cabinet Decision 98/2024 for financial years starting on or after 1 January 2023; substance requirements were transferred to the Corporate Tax regime, especially for Qualifying Free Zone Persons. ESR notifications and reports only apply to financial years between 2019 and 2022.
Audit Trail▸
Traceable documentation of each transaction: invoice, contract, payment, accounting entry. Essential when facing an inspection.
AED▸
Emirati Dirham, official currency of UAE. Fixed exchange rate approximately 1 USD = 3.67 AED.
What people ask us most.
Is a tax audit mandatory in the UAE?
It is not mandatory in all cases, but highly recommended to get ahead of FTA inspections and minimise the risk of penalties.
Which taxes are reviewed in a tax audit?
Primarily VAT, although Corporate Tax obligations, tax records, filed returns and invoicing compliance under UAE regulations are also reviewed.
How often is a tax audit recommended?
The recommended approach is annually, or before a known FTA inspection. For regulated sectors or cross-border operations, a semi-annual review is advisable.
Does a tax audit prevent FTA inspections?
It does not prevent them, but it ensures the company is prepared and has proactively corrected any risks before the FTA identifies issues.
Can it be done remotely?
Yes, most of the process can be carried out remotely: we share documents through secure channels, analyse them at our offices and issue the report by email.
What happens with errors that are detected?
Recommendations are drafted to correct them and, where appropriate, we coordinate the submission of amended returns to the FTA before any official inspection takes place.
The trust of those who already work with us
Audit before you get audited. Gain time, peace of mind and control.
Book an initial consultation with no commitment. We will design an audit scope tailored to your company's size and complexity, with a clear timeline and deliverables.
Book a consultation →Dubai Marina, UAE