New VAT Audit Protocols in UAE: What Businesses Should Expect in 2025

The FTA has proposed major amendments in the VAT Executive Regulations that shall take effect in March 2025 and alter the way organizations in the UAE prepare and have VAT audits. Such amendments indicate the intent of the government to improve compliance, transparency, and proper reporting.

For companies, understanding the new VAT audit UAE protocols is crucial to ensure compliance and avoid penalties.

Key Updates in VAT Audit Protocols 2025

1. Stringent Record-Keeping Obligations: To ensure adherence to the law of taxation, businesses now have to keep detailed records of all taxable supplies and imports with supporting documentation. The new regulations underline the fact that a lack of documentation may trigger audit problems or fines.

2. Clarified Deadlines for Amendments: In case mistakes are found in VAT returns, the companies will have to provide corrections within a fixed period of time as set by the FTA. Delays in compliance could trigger audit scrutiny.

3. Enhanced Deregistration Oversight: The amendments strengthen the fact that businesses seeking to be tax deregistered will be scrutinized more by the FTA. Deregistration approvals can be given by showing that all VAT liabilities, including current and previous filings and payments, are fully paid.

4. Expanded Scope of FTA VAT Audits: FTA officers now have broader authority to request detailed transaction-level data during VAT audits. This expansion ensures that underreporting, non-disclosure, or misclassification of supplies can be swiftly detected.

Why These Changes Matter for Businesses

The new rules emphasize the attention of FTA to accuracy and accountability. Failure to comply might lead to fines, postponement of refunds or deregistration. Engaging a VAT consultant in Dubai can help businesses:

• Ensure VAT returns are error-free.

• Maintain audit-ready documentation.

• Handle FTA queries with confidence.

Ensure VAT Compliance in 2025 with AMCA Auditing

The new VAT audit protocols in the UAE represent a clear shift towards greater regulatory oversight in 2025. Businesses that act early to strengthen compliance will not only avoid penalties but also build long-term trust with regulators.

At AMCA Auditing, we specialize in guiding the business through the FTA VAT audit, from record-keeping and compliance checks to providing support for deregistration. Stay ahead of the 2025 changes—contact AMCA today to ensure your VAT journey is seamless and penalty-free.

FAQs

1. What is a VAT audit in the UAE?

A VAT audit is an official review by the FTA to verify businesses are properly calculating, reporting and paying VAT.

2. How often can the FTA conduct VAT audits?

There is no fixed frequency; the FTA can initiate an audit based on risk assessment, suspected non-compliance, or random selection.

3. What records should businesses maintain for a VAT audit?

Companies must keep invoices, contracts, import/export documents, and all supporting VAT calculations for at least the statutory period required by the FTA.

4. Can a VAT consultant in Dubai help with VAT audits?

Yes, consultants assist in preparing audit-ready records, representing businesses before the FTA, and ensuring compliance with the updated 2025 protocols.