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A VAT audit in the UAE is an essential process where the Federal Tax Authority (FTA) reviews a business’s VAT records to ensure compliance with the VAT laws introduced in 2018. This audit involves examining VAT returns, tax invoices, and accounting records to verify the accuracy of reported VAT liabilities and claims. Businesses must maintain meticulous records to withstand an FTA audit. Professional accounting firms in the UAE offer VAT audit services to help businesses prepare for these audits, ensuring that all documentation is accurate and compliant. Proper preparation for a VAT audit minimizes the risk of penalties and enhances overall tax compliance.
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