VAT Audit: What Documents Will Be Checked?
Introduction
A VAT audit by the UAE’s Federal Tax Authority (FTA) involves a thorough review of your business's records to verify whether you are correctly applying VAT laws and regulations. One of the most crucial aspects of the audit process is document verification — which is why maintaining the right documentation is essential.
Here, we explain which documents FTA typically checks during a VAT audit, how long you need to retain them, and how to stay prepared.
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🧾 Why Documentation Matters in a VAT Audit
The FTA uses documentation to:
• Verify input and output VAT accuracy
• Confirm tax invoice compliance
• Assess refund claims and exemptions
• Cross-check data across multiple filings and periods
🔎 Failure to maintain proper records can result in administrative penalties — even if your VAT amounts are accurate.
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📋 List of Documents Checked During a VAT Audit
Below is a comprehensive list of documents the FTA usually reviews:
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1. Tax Invoices
• Sales invoices issued with correct TRN, VAT amount, and mandatory fields
• Purchase invoices to support input VAT claims
• Credit and debit notes issued/received
🕒 Retain for at least 5 years (15 years for real estate)
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2. VAT Return Filings
• All VAT returns submitted via EmaraTax (Form VAT201)
• A summary of payable/receivable VAT
• VAT payment receipts and bank confirmations
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3. Sales and Purchase Ledgers
• Detailed customer and supplier lists
• Chronological listing of all transactions
• Clear indication of VAT charged or paid
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4. Chart of Accounts and General Ledger
• Accounts where VAT transactions are recorded
• Reconciliation with VAT return figures
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5. Input VAT Working
• Summary of input VAT claimed per period
• Justification of recoverability
• Records of blocked input VAT (e.g., entertainment, personal expenses)
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6. Export and Import Records
• Customs declarations
• Import/export bills
• Shipping documents for zero-rated supplies
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7. Fixed Asset Register
• VAT impact of capital assets
• Proof of input VAT recovery on fixed assets
• Asset purchase invoices
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8. Bank Statements
• Proof of VAT payments made to the FTA
• Proof of receipt of customer payments
• Confirmation of transaction values in returns
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9. Contracts and Agreements
• Sales and purchase contracts
• Lease agreements
• Agency or service contracts affecting VAT treatment
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10. Inventory and Stock Reports
• Stock reconciliation reports
• Inventory movement logs (especially for traders and retailers)
• Adjustments for damaged/obsolete stock with VAT implications
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11. Employee Expense Records (if applicable)
• Staff reimbursements
• Entertainment or travel expenses
• VAT applicability and segregation of personal vs business
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12. Voluntary Disclosure Records
• Form VAT211 submissions
• Correspondence with the FTA regarding corrections
• Payment records of additional tax or penalties
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📂 Format of Documents Required
FTA may request documents in:
• PDF or scanned copies
• Excel format for ledgers and summary sheets
• Arabic translation, if originals are in other languages
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⚠️ Penalty for Not Maintaining Proper Records
Violation Penalty Amount
Failure to maintain records AED 10,000 (1st time), AED 20,000 (repeat)
Failure to submit on time AED 5,000
Incorrect or misleading documents AED 5,000–50,000 depending on intent
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🧠 Best Practices to Stay Compliant
• Maintain digital and backup copies of all key VAT records
• Automate VAT reports using accounting software (like Finabooks)
• Perform quarterly internal audits of VAT documentation
• Use consistent file naming and organized folders
• Get a pre-audit health check from a VAT consultant
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🤝 Need Help Organizing VAT Audit Documents?
At Sheikh Anwar Accounting & Auditing LLC, we offer:
• VAT documentation audits
• Pre-audit assessments
• On-site and remote FTA audit support
• VAT recordkeeping templates and training
📧 Contact: info@sa-auditors.com
🌐 Website: www.sa-auditors.com
📞 +971-XX-XXXXXXX
