The short answer
The FTA can audit VAT, excise and corporate tax returns, usually within five years of the period concerned, and gives at least five business days' notice before an audit at your premises. Errors found during an audit cost more than errors you disclose first. We prepare the file, attend the audit and handle the assessment.
How much notice does the FTA give?
At least five business days before an audit at your premises, and the FTA can also audit at its own offices or anywhere you keep goods or records (MBG Corporate Services). Selection is mostly risk-based. Once the notice arrives, use the time to reconcile the returns under review to the ledger and gather contracts, invoices and customs documents.
How far back can the FTA audit?
Five years is the default limit for audits and assessments. Since 1 January 2026, a refund claimed late in that window can extend the FTA's right to audit that claim by up to two years (PwC summary of Federal Decree-Law No. 17 of 2025). Records must therefore be complete and retrievable for every open period.
“The amended law will come into effect on 1 January 2026.”
Should I disclose errors before the audit?
Usually yes. Since 14 April 2026 a voluntary disclosure attracts 1% a month on the tax difference, but disclosing after an audit notice adds a fixed 15% (Al Tamimi summary of Cabinet Decision No. 129 of 2025). Errors the FTA finds itself can lead to assessments with late-payment penalties at an annualised 14%, so a pre-audit review that finds and fixes errors first is usually worth the cost.
What happens after the audit?
The FTA notifies its results and, where it finds tax due, issues an assessment you can review (MBG Corporate Services). If you disagree, the reconsideration clock starts from that notice. See how FTA disputes work.
Frequently asked questions
Can the FTA visit without notice?
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For audits at your premises it gives notice; inspections in suspected evasion cases follow different rules.
Who should attend the audit?
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Someone who knows the books and the business, with your tax agent. Answers should be accurate and documented, not improvised.
Does a tax audit mean I did something wrong?
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No. Many audits are risk-based or routine. Good records usually make them short.
Sources
- Tax audit framework, risks and consequences in the UAE — MBG Corporate Services. Checked 17 October 2026.
- UAE: Significant legislative updates to tax procedures, VAT and excise tax laws (Federal Decree-Laws No. 16 and 17 of 2025) — PwC Middle East. Checked 16 October 2026.
- UAE introduces comprehensive tax penalty reform, effective 14 April 2026 (Cabinet Decision No. 129 of 2025) — Al Tamimi & Company. Checked 16 October 2026.
- Ministry of Finance to implement amendments to the Tax Procedures Law starting early 2026 (Federal Decree-Law No. 17 of 2025) — UAE Ministry of Finance, 29 November 2025. Checked 16 October 2026.