A VAT and Excise Tax return compliance review is an independent, systematic examination of a business’s previously filed tax returns, accounting records, and supporting documentation — conducted before the Federal Tax Authority (FTA) initiates an audit. Its purpose is to identify errors, omissions, and compliance gaps early, so they can be corrected through a voluntary disclosure before FTA scrutiny — significantly reducing penalty exposure. At Abdelhamid & Co. Certified Public Accountants & Auditors L L C SP, we are licensed by the UAE Ministry of Economy (Local Auditors Record No. LC0106-01) and registered as a licensed FTA Tax Agent (TAN: 30003958 | TAAN: 20033908). This service is part of our broader UAE VAT and excise tax services. It connects directly to our voluntary disclosure service, return filing service, and reconsideration requests service. Learn more about our firm and our team. Under Cabinet Decision No. 40 of 2017 as amended (including Cabinet Decision No. 129 of 2025, effective 14 April 2026), the penalties for errors discovered by the FTA during an audit are significantly higher than those applicable when a business proactively files a voluntary disclosure: The compliance review is conducted against the requirements of: We verify that all taxable supplies have been correctly identified, classified, and reported at the right rate — standard-rated (5%), zero-rated, or exempt. We check for under-declared supplies, incorrect zero-rating claims (particularly for exports and international services), omitted supplies, and errors in the treatment of deemed supplies, gifts, and personal use. We review all input VAT claimed to confirm recovery was validly supported by compliant tax invoices, that the underlying goods and services are used for taxable business purposes, and that blocked input VAT categories (entertainment, employee benefits, motor vehicles) have not been incorrectly recovered. We examine issued and received tax invoices for compliance with the mandatory content requirements under the VAT Executive Regulations — including TRN, date, tax amount, and correct supplier and recipient details. Non-compliant invoices can invalidate input tax recovery. We verify that VAT has been correctly self-accounted on imports of goods and services under the reverse-charge mechanism, and that designated zone transactions have been treated correctly under FTA guidance. For Excise Tax registrants, we review declarations covering taxable imports, local production, and stockpiler positions. We also assess whether the business is maintaining tax records for the minimum required period — 5 years (or 15 years for real estate transactions) — and whether documentation is sufficient to withstand FTA scrutiny. We define the review scope based on the business’s industry, transaction volumes, and risk profile — determining which tax periods and transaction types carry the highest exposure and prioritising accordingly. We conduct transaction-level testing of a representative sample of supplies, purchases, and tax invoices, cross-referencing against submitted VAT returns and the EmaraTax filing history to identify discrepancies. We issue a detailed written compliance report identifying all errors, omissions, and areas of risk, quantifying the tax difference and estimated penalty exposure for each issue, and recommending the appropriate corrective action. Where the review identifies material errors requiring correction, we prepare and file the voluntary disclosure on your behalf via EmaraTax as licensed FTA Tax Agents, to take advantage of the reduced penalty regime before any FTA audit notification. Following the review and any voluntary disclosure, we provide ongoing compliance guidance to prevent recurrence — including review of internal VAT accounting processes, staff guidance, and periodic health checks aligned with VAT return filing periods. A compliance review is a voluntary, internal examination conducted by your tax agent before the FTA initiates any audit. An FTA audit is an official examination with formal powers to access records, issue assessments, and impose penalties. The key advantage of a compliance review is that errors discovered can be corrected via voluntary disclosure under a significantly lower penalty regime. For most businesses, an annual compliance review covering the preceding four quarterly VAT return periods is prudent. Higher-risk businesses — those with complex supply chains, large transaction volumes, or recent changes in business activity — may benefit from more frequent reviews. Under Cabinet Decision No. 129 of 2025 (effective 14 April 2026), a voluntary disclosure filed before FTA audit notification attracts only a 1% monthly penalty on the tax difference. If the same error is found by the FTA during an audit, an additional 15% fixed penalty applies on top of the monthly penalty. On a tax difference of AED 100,000, this is a saving of AED 15,000 in fixed penalties alone. VAT-registered businesses must maintain all tax records — including tax invoices, import documents, contracts, and accounting records — for a minimum of 5 years from the end of the relevant tax period. For real estate transactions, the retention period is 15 years. Failure to maintain adequate records carries a penalty of AED 10,000 per violation (AED 20,000 for repeat violations). Yes. A key part of the compliance review is identifying input VAT that may have been under-claimed — for example, due to missing invoices, incorrect blocking of input tax, or failure to claim on legitimate business expenses. Recovering under-claimed input VAT reduces the net VAT payable position. Yes. Where the client is registered for Excise Tax, our compliance review covers both VAT and Excise Tax returns, declarations, and records in the same engagement. The FTA may select businesses for audit based on risk profiling, inconsistencies in filed returns, large or unusual refund claims, industry sector patterns, or random selection. A proactive compliance review is the most effective way to address potential risk areas before the FTA initiates contact. 📞 Phone / WhatsApp: +971 50 794 8028 Abdelhamid & Co. Certified Public Accountants & Auditors L L C SP — Licensed by the UAE Ministry of Economy (LC0106-01) | Licensed FTA Tax Agent (TAN: 30003958 | TAAN: 20033908) Last reviewed: April 2026. Content reflects UAE law at date of review.VAT and Excise Tax Return Compliance Review Service in the UAE
Why a VAT compliance review matters
Key facts — VAT compliance review UAE
Legal framework
What the compliance review covers
1. Output VAT review
2. Input VAT recovery review
3. Tax invoice compliance
4. Imports and reverse-charge mechanism
5. Excise Tax and record-keeping compliance
Our VAT and Excise Tax compliance review service
1. Pre-review planning & scope setting
2. Detailed compliance testing
3. Compliance report & findings
4. Voluntary disclosure filing
5. Post-review monitoring & ongoing compliance
Why choose Abdelhamid & Co for VAT compliance reviews?
Frequently asked questions — UAE VAT compliance review
What is the difference between a VAT compliance review and an FTA audit?
How often should a business conduct a VAT compliance review?
What is the financial benefit of finding errors before an FTA audit?
What records does the FTA require businesses to maintain?
Can a compliance review help with input VAT recovery?
Does the review cover Excise Tax as well as VAT?
What triggers an FTA audit in the UAE?
Related services
Contact us for VAT compliance review services in the UAE
📞 Direct: +971 065 289 414
🌐 Office: Sharjah, Al Qasimia, Omran Tower, Office 302
Contact us
Timing: Sat–Thu: 8AM–6PM
Mobile\WhatsApp: 0507948028
Phone: 065610040
Email: info@abdelhamidcpa.com