VAT Health Check

A VAT Health Check is an independent review of how your business handles Value Added Tax across its sales, purchases, records and returns. It examines whether VAT is being charged, recovered, recorded and reported correctly under UAE VAT law and Federal Tax Authority (FTA) guidance, with the aim of identifying errors, gaps and risks before they turn into penalties or queries during an FTA audit.

Since VAT was introduced in the UAE at the standard rate of 5%, every registered business is responsible for applying the correct treatment to its transactions and filing accurate returns. Over time, however, system changes, new activities and staff turnover can lead to mistakes that go unnoticed. A periodic health check, or VAT review, gives owners and finance teams clear, independent assurance about where they stand and what needs to be put right.

What's Included

Our VAT Health Check examines the areas that most commonly affect compliance and VAT exposure for UAE businesses:

• Review of VAT registration details, tax group status where relevant, and the accuracy of information held by the FTA.
• Testing of output VAT to confirm that supplies are correctly classified as standard-rated, zero-rated, exempt or out of scope.
• Examination of input VAT recovery, including blocked items, partly recoverable costs and the supporting documentation required to claim it.
• Checks on tax invoices, credit notes and records to confirm they meet FTA format and content requirements.
• Reconciliation of filed VAT returns to the accounting records to identify discrepancies and unreported amounts.
• A written report setting out findings, the potential impact of each issue, and practical recommendations to correct them.

How It Works

We carry out the engagement in clear, manageable stages so your team always understands the position and the next steps:

1. Scoping: we discuss your business activities, structure and VAT history to define the scope of the review.
2. Information gathering: we request VAT returns, accounting records, sample invoices and relevant contracts.
3. Review and testing: we test your VAT treatments, recovery positions and records against current UAE VAT law and FTA guidance.
4. Reporting: we deliver a findings report highlighting errors, risks and their potential impact, with recommended actions.
5. Support: we help you correct issues, submit voluntary disclosures where needed, and strengthen processes for future returns.

Who Needs a VAT Health Check

This service is valuable for any VAT-registered business that wants certainty about its compliance. It is especially relevant for:

• Businesses that have never had their VAT processes independently reviewed since registration.
• Companies with mixed supplies, where standard-rated, zero-rated and exempt sales sit side by side.
• Organisations that have changed accounting systems, expanded activities or restructured operations.
• Businesses concerned about past errors who want to identify and correct them before the FTA does.
• Owners and finance teams who want independent assurance ahead of a potential FTA audit or review.

Why Choose ADS Auditors

ADS Auditors is an FTA-registered tax and audit firm based in the UAE, with experience supporting businesses across mainland and Free Zone jurisdictions. Our specialists stay current with UAE VAT legislation and FTA guidance, so our reviews reflect the rules as they apply today. We focus on practical, business-aware advice, explaining findings in plain terms and helping you act on them. By bringing tax, accounting and audit expertise together under one roof, we give you a complete and reliable view of your VAT position and the support to keep it compliant.