Compliance Hygiene for
Audit Readiness
Most VAT issues do not arise from the 5% rate. They arise from weak controls, missing documentation, and poor reconciliation discipline.
This VAT Health Checklist helps UAE businesses confirm that their baseline VAT framework is structurally sound, consistent with UAE VAT law and Federal Tax Authority (FTA) expectations.
What This Checklist Covers
Covers registration, invoicing, returns and records
Registration & Setup
- VAT registration status matches actual business activities and trade license
- Mandatory and voluntary registration thresholds are monitored on an ongoing basis
- VAT treatment is clearly defined for key revenue streams (5%, 0%, exempt, out of scope)
Invoicing & Documentation
- Tax invoices contain all mandatory particulars (supplier name, TRN, VAT rate and amount)
- Credit notes are correctly linked to original tax invoices
- Export and zero-rated supplies are supported with complete evidence
- Supplier invoices are validated before claiming input VAT
VAT Returns & Reconciliations
- VAT return figures reconcile with general ledger and sub-ledgers
- Reverse Charge Mechanism (RCM) transactions are correctly identified and reported
- VAT returns and payments are submitted on time with internal approvals
- Errors discovered post-filing are addressed through a documented voluntary disclosure process
Records & Governance
- VAT records are retained for statutory periods
- VAT roles and responsibilities are clearly assigned
- High-risk expense categories are flagged for review
Who This Is For
How to Use
Complete the checklist internally.
Mark each item as In Place / Needs Attention / Not Applicable.
Address gaps before they become audit issues.
Get the VAT Health Checklist
Contact us for the full checklist and a short call about your answers.
Need Review?
If multiple risks apply, a confidential VAT risk review can identify exposure before FTA does.
All engagements handled with strict confidentiality.
What does the VAT Health Checklist do?
This checklist helps you test whether your VAT set-up is sound before an FTA audit or a period of growth. It covers registration and set-up, invoicing and documentation, VAT returns and reconciliations, and records and governance.
How to use it
- Go through each area and answer honestly for how things work today.
- Note every item where the answer is no or not sure; those are your gaps.
- Prioritise the gaps with the largest VAT amounts or audit risk, and fix those first.
VAT Health Checklist: questions and answers
Who is this checklist for?
CFOs, finance managers and owners of VAT-registered businesses in manufacturing, trading and services who want to strengthen VAT controls before an audit or expansion.
What does a VAT health check cover?
Registration and set-up, tax invoices and credit notes, return preparation and reconciliation to the ledger, and record keeping and governance.
What should I do with the gaps I find?
Fix process and documentation gaps first. Where a gap may have led to an under-declaration, check whether a voluntary disclosure is needed before the next return.
Is the result tax or financial advice?
No. The result is an estimate for planning, based only on the figures and answers you enter. It is general information, not legal, tax or financial advice. For a decision, have your position reviewed against your full facts.
Related
Want a second opinion on your result? WhatsApp 058-2754282 or send a request.
General information only, not legal or tax advice.
Valorin is an independent advisory firm, not affiliated with the FTA or MoF.