Introduction

In 2026, the Federal Tax Authority (FTA) continues to intensify corporate tax and VAT audits across the UAE.
For businesses, ensuring full compliance isn’t optional — it’s critical. A single filing error or missing document can lead to severe penalties or even license suspension.

At MHK Accounting & Taxation Services LLC, we explain how to prepare your company for an FTA audit in 2026, stay compliant, and maintain a clean tax record.

What Is an FTA Tax Audit?

An FTA Tax Audit is a detailed review conducted by the Federal Tax Authority to ensure that a business has properly declared and paid all due taxes, including VAT and Corporate Tax.

Audits may be scheduled or surprise visits, where officials review invoices, accounting records, and tax filings for accuracy and compliance.

Purpose:

• Verify accuracy of VAT & Corporate Tax returns
• Detect non-compliance or tax evasion
• Ensure businesses follow UAE Tax Law and FTA procedures

FTA Audit Triggers in 2026

FTA typically selects businesses for audits based on data discrepancies or red flags such as:

• Inconsistent VAT or corporate tax filings
• Unusual refund claims
• Delayed or missed tax return submissions
• Sudden changes in revenue or input tax credits
• Anonymous reports or risk-based screening

💡 Example:
A Freezone trading company reporting high refunds for three consecutive quarters was flagged for an FTA audit — leading to re-evaluation of its supplier invoices.

Documents Required During FTA Audit

Here’s what businesses must keep ready at all times (preferably digital and organized):

FTA Audit Process (Step-by-Step)

1. Notification Letter: FTA informs your company via official email or letter.
2. Document Request: List of required financial records is shared.
3. On-Site or Remote Audit: FTA officials review all documents.
4. Findings Report: FTA issues an audit report with results.
5. Response Period: Businesses can clarify discrepancies.
6. Penalties (if any): Applied for proven non-compliance.

How to Stay 100% FTA Compliant

✅ Maintain accurate bookkeeping (digital + paper trail)
✅ File VAT and Corporate Tax returns on time
✅ Reconcile invoices and bank records monthly
✅ Store documents for minimum 5 years (as per UAE law)
✅ Conduct internal mock audits with MHK before official FTA visits

How MHK Accounting Helps You Stay Audit-Ready

At MHK Accounting & Taxation Services LLC, we help businesses across UAE Mainland and Freezones prepare for FTA audits and maintain full compliance.

Our services include:

📑 FTA Audit Preparation & Representation
📊 Corporate Tax & VAT Reconciliation
🧾 Documentation & Filing Review
💻 FTA-Approved Accounting Software Setup
⚖️ Advisory on Dispute Resolution and Appeals

Conclusion

As FTA audit regulations evolve in 2026, businesses must focus on transparency, accuracy, and digital recordkeeping.
Partnering with experienced tax advisors ensures you stay compliant and avoid penalties.

At MHK Accounting UAE, our experts help clients maintain clean financial records, pass audits confidently, and meet every FTA standard.

References

• Federal Tax Authority (FTA) Official Portal
• UAE Corporate Tax Law 2023 (MoF)
• FTA VAT Guidelines & Compliance Updates 2026

FAQ

Call-to-Action

📢 Facing an upcoming FTA audit? Don’t risk non-compliance.
Let MHK Accounting & Taxation UAE help you prepare, file accurately, and stay fully compliant with UAE’s 2026 regulations.

Book Your FTA Audit Consultation Now