Definition

An FTA Inspection is a formal review conducted by the UAE Federal Tax Authority to ensure a business complies with VAT and Corporate Tax laws. It may include visiting premises, reviewing records, and verifying transactions.

Key points

• Can occur with or without prior notice.
• Inspectors may seize records or request clarifications.
• Results may lead to a tax assessment or penalties.
• Businesses have the right to respond or appeal.

Practical example

The FTA conducts a surprise inspection at a retail outlet to confirm VAT is being correctly applied on sales receipts.

Why it matters

Being prepared for inspections ensures smooth operations and demonstrates professional tax compliance.