UAE tax audits boost revenues by over $1 bn in 2025

The Federal Tax Authority (FTA) increased tax audits by 46 % in 2025, helping raise UAE tax revenues by more than $1 billion. Revenue from VAT and excise duties grew to AED 46 billion ($12.5 bn), aided by the introduction of a 9 % corporate tax that expanded the tax net to almost all businesses.

The FTA is relying on artificial intelligence and e‑invoicing pilots to improve compliance and target audits more effectively. Mandatory e‑invoicing is planned for larger firms from 2027, which will provide near‑real‑time transaction visibility.

Meanwhile, businesses are adapting to the expanding tax framework. Guides highlight virtual bookkeeping services as a cost‑effective way to meet corporate‑tax and IFRS reporting requirements, outline the steps and costs for obtaining a Tax Registration Number (TRN) for VAT compliance, and explain the risks of import VAT and the reverse‑charge mechanism that shift VAT liability to UAE recipients. These resources aim to help companies avoid penalties, recover input VAT, and maintain proper documentation under the FTA’s stricter enforcement regime.