VAT Impact on Company Profit in UAE: Key Factors Businesses Must Understand
19-Jan-2026
TAX Auditors in Dubai
Trusted tax auditors in Dubai offering
audit support and compliance services
for businesses across the UAE.
TAX Auditors in UAE
As per the Tax Procedures Law No.7., a tax audit is a process conducted by the FTA to analyse the commercial records or data of the taxable persons who are doing business in the UAE.
The FTA conducts a full audit on a taxable person to check that the taxable person complies with the UAE VAT Law and the Tax Procedures Law. By conducting a tax audit, the FTA verifies that the taxable person has paid all of his or her obligations and that any taxes owed are collected and delivered to the government within the timeframe specified. Pre-audit and post-audit help are provided by tax agents registered with the Federal Tax Authority in the UAE to ensure VAT compliance. Do not approach tax agents who are not registered with the FTA.

We at Reyson Badger are a registered VAT consulting firm that provides Tax Auditing services in Dubai and the UAE. We are always ready to provide you with Tax-related advice and tax audit services.
How Does the FTA Process Tax Audits in Dubai, UAE?
FTA appoints officials with the task of performing a tax audit in the UAE. During a tax audit in the UAE, tax auditors from the FTA will examine tax returns and any pertinent information. According to the Tax Procedures Law, the Federal Tax Authority (FTA) can conduct a tax audit at any time for any reason.
Even though the FTA does not require a specific reason to conduct tax audits in the UAE, as per Article 16 of Federal Decree-Law No. 28 of 2022 on Tax Procedures, they will issue a written notice at least ten business days prior to conducting the Tax Audit, except in specific cases where prior notice is not required (such as suspected Tax Evasion). As per Article 17 of the same Decree-Law, a tax audit is usually conducted during the FTA’s official working hours
The tax processes law mandates that the company, its legal staff, and tax consultants in Dubai, UAE, offer the FTA tax auditors all necessary support. If the tax auditors discover any inconsistencies or suspicious data during the audit, they can request a re-audit. Companies can seek the counsel of registered tax agents in Dubai, UAE, to ensure compliance.
The Role of Tax Auditors in Compliance
Tax auditors in the UAE play a vital role in ensuring businesses comply with the country's complex tax laws and regulations. Here's how they help:
Identifying Tax Risks
- They pinpoint potential areas where a business might face tax issues.
- They conduct a risk analysis for tax audit and potential penalties.
Analysis of Financial Reports
- They give detailed attention to financial reports, tax returns, and other supporting documents.
- They catch errors, omissions, or inconsistencies that can result in tax issues.
Maximising Tax Planning
- They consult on how best to minimise taxes through tax planning while remaining compliant.
- They assist the business in identifying legitimate tax deductions, credits, and incentives.
Solve Tax Disputes
- They represent clients in tax disputes with the Federal Tax Authority (FTA).
- They negotiate with tax authorities to solve issues and try to minimise penalties.
Tax Law Updates
- They maintain updated trends on the latest prevailing tax laws and regulations.
- They offer timely advice to clients concerning new tax developments.
What are the Records that Should be Maintained for Tax Audits in the UAE?
Taxable entities must maintain certain records to simplify a tax audit. Tax registrants must preserve the following records and give them to the tax auditor during the audit, according to Article (78) of the Federal Decree-Law on Value Added Tax:
- Records of all supplies and imports
- Tax invoices and other papers about the receipt of goods and services
- All tax credit notes and documents received
- All tax invoices and documents that have been issued
- Records of products and services disposed of for reasons unrelated to business, as well as records of tax paid on the same
- Records of Goods and Services purchased but not deducted from the Input Tax
- Export records of goods and services
- Records of adjustments or corrections made to accounts or tax services
Types of Auditors in the UAE
The UAE has a diverse range of auditors, each with specific roles and responsibilities. Here are some of the main types:
Government Approved Auditors : Professionals who are licensed to practice public accounting. Many of them are assigned by government authorities to audit public sector entities or private companies which are subject to certain government regulations.
Bank-Approved Auditors : These auditors are approved by specific banks to carry out the audit of companies that have financial transactions with such banks. Their principal responsibility is to provide assurance about the health and dependability of the company for lending purposes.
Internal Auditors: These are employees of an organisation who undertake to assess the internal controls of the organisation, risk management processes, and its efficiency in operations. They give independent assurance to both the management and the board of directors.
External Auditors : They are independent auditors hired by the companies to carry out an unbiased audit of a company's financial statements. They ensure that its financial statements are accurate and reliable and comply with applicable accounting standards.
Reyson Badger as Tax Consultant in the UAE
A VAT-registered business should assign a licensed auditor who is a registered with the Ministry of Economy to audit the financial affairs. A skilled tax consultant will ensure that even the tiniest details are included in the filing of Returns and the business is free from any negative attention from the FTA. We at Reyson Badger are one of the best Tax auditors in the UAE who can efficiently handle your tax-related issues.
Please get in touch with us right now for a free consultation.
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