In 2025, VAT audits by the FTA have become more structured and data-driven. Companies are selected based on risk profiles, inconsistencies in previous returns, or sector-specific red flags. Key sectors under increased scrutiny include logistics, digital services, and professional consultancies.

Auditors now review:

• VAT return trends over time
• Large input tax reclaims
• Differences between VAT and financial records
• Delayed or missing invoice submissions

To prepare, businesses should conduct internal VAT health checks every quarter. Ensure all invoices meet FTA standards, and that tax codes are correctly applied in your accounting system. It’s also advisable to keep digital records and backups for at least 5 years.

Audit Preparation Checklist:

• All tax invoices are formatted correctly and archived.
• VAT returns match ledger entries and trial balances.
• Input VAT claims are substantiated by actual usage and not duplicated.

The best defense against an audit is consistent, transparent, and accurate VAT reporting.