The process begins with an official notification from the FTA, which includes:
→ Purpose: specification of the tax areas subject to review (for example, VAT or corporate tax).
→ Timeline: a defined period allocated for the audit. It is crucial to strictly adhere to these deadlines.
→ Documentation: a detailed list of required documents to be submitted to the auditors. This list may vary depending on the type of audit and the nature of the business.

This is the most critical stage, requiring careful and thorough preparation. The FTA examines the taxpayer’s records to identify discrepancies, non-compliance, or accounting errors.

VAT audit:
→ A complete and accurate record of all financial transactions for the audited period.
→ Reconciliation of bank statements, accounting records, and VAT reports.
→ Supporting documents for each transaction (invoices, payment confirmations, contracts, etc.).
→ Financial statements, including the balance sheet and profit and loss statement.
→ A properly maintained and regularly updated VAT register.

The audit may be conducted remotely (based on submitted documentation) or on-site, with auditors visiting the company’s office.

Corporate tax audit:
→ All tax returns submitted for the relevant period.
→ Originals and copies of contracts, agreements, payment records, completion certificates, and other documents confirming the company’s financial activities.

Such audits are typically conducted through scheduled meetings with auditors.

Upon completion of the review, the tax authority issues an audit report that includes:
→ The outcome of the audit, indicating whether any violations were identified.
→ Recommendations for improving accounting practices and ensuring compliance with tax regulations.
→ Penalties (if violations are found), determined based on the severity and category of the breach.