A VAT health check reviews past returns against underlying accounting records, tests input VAT recovery for proper documentation, checks the treatment of zero-rated and exempt supplies, and confirms invoicing meets FTA format requirements — surfacing errors while a voluntary disclosure is still an option. It's especially valuable for businesses that have never had a professional VAT review, or ahead of financing, investment or a change in ownership.

A diagnostic review of a business's VAT registration, past returns and supporting records against FTA requirements, to identify errors, under- or over-claimed VAT, and audit exposure.

Who needs it?
Businesses that self-file VAT returns, companies preparing for an FTA audit notice, businesses before a sale or investment round, and any VAT-registered entity wanting periodic assurance.

- Surfaces errors early, while voluntary disclosure options reduce penalty exposure

- Confirms input VAT claims are properly supported before the FTA checks

- Verifies invoicing and record-keeping meet FTA format standards

- Written report giving management and stakeholders assurance on VAT risk

1. Review registration status, filing history and payment record

2. Reconcile sample (or full) periods against accounting and invoice records

3. Test input VAT recovery, zero-rating and exemption treatment

4. Deliver a risk-ranked findings report with a remediation and disclosure plan

Cost Factor ~ Based on number of periods reviewed, transaction volume, and depth of testing (sample review vs full reconciliation).

Timeline ~ A single-year health check typically takes 1–2 weeks; multi-year or high-volume reviews take 3–4 weeks.

FAQs
1. Why would I need a VAT health check if my returns are always filed on time?
On-time filing doesn't mean the numbers on the return are correct — a health check tests whether input VAT claims, zero-rating and exemptions were applied correctly, which is exactly what an FTA audit tests. Filing on time with the wrong figures still exposes you to penalties.

2. Will a VAT health check help if the FTA later finds an error?
Yes — correcting an error yourself through a voluntary disclosure generally results in materially lower penalties than the FTA discovering it during an audit. A health check is what surfaces those errors while you still have that option.

3. How far back should a VAT health check go?
Most reviews cover the FTA's open assessment window, typically the last 5 years, though we can scope a shorter review for a specific concern. Businesses that have never had a review usually benefit from covering the full period.