The Federal Tax Authority (FTA) in the UAE has implemented a structured and risk-based approach to VAT audits to ensure compliance with tax regulations. Rather than auditing businesses at random, the FTA targets entities showing discrepancies in VAT filings, unusual refund claims, or inconsistent reporting patterns. A VAT audit in the UAE involves a thorough review of financial records, VAT returns, and supporting documents to detect errors or non-compliance. Understanding the FTA’s audit strategy helps businesses stay prepared, reduce the risk of penalties, and maintain accurate tax practices.