UAE VAT compliance checklist: 30-point self-audit for SMEs.

Section 1 — Registration compliance (6 checks)

• TRN on all documents — Your Tax Registration Number must appear on every tax invoice, credit note, and debit note. Check your invoice templates, ERP settings, and PDF layouts.
• Registration threshold current — If you have grown, recheck: taxable supplies over AED 375,000 in any rolling 12 months = mandatory registration. Voluntary threshold from AED 187,500.
• Group members listed — If you operate a VAT Tax Group, confirm all current group members are on the EmaraTax group registration and any new entities have been added.
• Trade licence activity matches VAT activities — FTA cross-checks declared activities against your trade licence. Mismatches trigger queries on ‘scope of taxable activities’.
• Deregistration trigger monitored — If taxable supplies have fallen below AED 187,500 for 12 consecutive months, mandatory deregistration applies within 20 working days of trigger.
• No historical registration gap — Confirm the date you first crossed the threshold and that registration was filed within 30 days. A gap triggers AED 10,000 penalty plus retroactive output VAT.

Section 2 — Invoice compliance (8 checks)

• Words ‘Tax Invoice’ clearly stated on every VAT invoice (not just ‘Invoice’).
• Sequential invoice number — must be unique and traceable in your accounting records.
• Issue date and supply date — both must appear if they differ.
• Supplier TRN visible — your TRN on every outgoing tax invoice.
• Customer TRN (for B2B) — required for standard-rated B2B supplies where the customer provides their TRN.
• Line-item VAT amount in AED — cannot be stated as percentage only.
• Simplified invoice threshold — for B2C supplies under AED 10,000, a simplified tax invoice (fewer fields) is allowed, but you must have a policy on which format applies where.
• Credit and debit notes reference original invoice — adjustments must cite the original tax invoice number and date.

Section 3 — Return filing (6 checks)

• Filing deadline met every period — 28th of the month following the tax period. A quarterly filer for Jan–Mar files by 28 April. Late filing = AED 1,000 first time / AED 2,000 if repeated within 24 months.
• Nil returns filed — even if there are no transactions in a period, a nil VAT 201 must be submitted. Nil return = VAT 201 with zeros; not submitting is a late filing.
• Output VAT correctly categorised — standard-rated (5%), zero-rated (0%), exempt, and out-of-scope supplies are each reported in separate boxes.
• Input VAT only for business supplies — private/personal use is not claimable. If a car is used 40% privately, only 60% of the VAT on fuel and maintenance is recoverable.
• RCM output and input correctly netted — imported services trigger a self-supply (output VAT) and, if taxable use, an equal input VAT recovery in the same period.
• Voluntary disclosures filed for discovered errors — if you find a mistake in a prior period, filing a VD reduces the penalty. Under the post-14-April-2026 regime: 1%/month on the tax difference if filed before FTA notifies you.

Section 4 — Records and systems (10 checks)

• All invoices stored — both issued (sales) and received (purchase) invoices, in PDF or original format. Email is acceptable if retrievable.
• 5-year retention applied — from end of the relevant tax period. Real estate and capital asset records: 10 years.
• Bank statements match VAT return — FTA cross-references declared output VAT against bank deposits. Unexplained receipts suggest underreported supply.
• Import documents match RCM entries — customs declarations, freight invoices, and service agreements for foreign services should tie to your RCM output entries.
• Capital asset register maintained — for any asset ≥ AED 5,000, track acquisition cost, input VAT claimed, and actual taxable use each year for the 5- or 10-year adjustment window.
• Mixed-use apportionment method documented — if you make both taxable and exempt supplies, your partial exemption calculation method must be on file and applied consistently.
• Free-zone supply classification current — if you supply to or from designated zones, check each supply against FTA’s current DZ list and goods vs services rules.
• Employee expense claims VAT-reviewed — entertainment expenses are blocked; fuel may be partially blocked; hotel and subsistence for business travel is recoverable.
• Related-party transactions at arm’s length — FTA can challenge below-market intercompany pricing. Document the basis of related-party prices.
• Contract amendments reviewed — long-term contracts signed pre-VAT or at wrong rates should be checked for whether an amendment is needed to correctly pass VAT to customers.