Audit vs Tax Advisory: What’s the Difference in UAE?
In the UAE, audit and tax advisory are related but quite different services: one focuses on verifying financial numbers (audit), while the other focuses on planning and optimizing your tax affairs (tax advisory). What is an audit in the UAE? An audit in the UAE generally means a statutory or financial audit of a company’s financial statements. Key points:
It is usually required annually by free-zone authorities (DMCC, JAFZA, etc.) or for certain corporate structures to renew licenses.
It checks whether the financial statements give a true and fair view of the company’s position, following UAE-recognized accounting standards.
Conducted
by
an independent,
approved
audit
firm and
results
in
an audit
opinion (unqualified, qualified, etc.). A tax audit by the Federal Tax Authority (FTA) is a separate process where the FTA reviews your VAT, corporate tax returns, invoices, and records to confirm tax compliance.
What is tax advisory in the UAE? Tax
advisory is
a consulting
and
planning
service,
not
a
verification-type
audit.
Key points:
It helps you understand UAE tax rules (VAT, corporate tax, etc.), structure your business, and plan transactions to be fully compliant and tax-efficient.
Typical services include: VAT registration advice, transfer-pricing structuring, tax-efficient entity setup, filings support, and defense/pre-audit reviews before an FTA inspection.
It is proactive and advisory, aimed at minimizing risk and tax cost, whereas audit is reactive and compliance-testing.
AVS Lewis & Pecker stands out as a leading Chartered Accountant firm in Dubai, offering integrated accounting, VAT advisory, and corporate tax services tailored to UAE regulations. By combining audit, bookkeeping, and tax compliance under one roof, they help businesses stay compliant and financially transparent in a dynamic market. This holistic approach makes them a reliable partner for SMEs, startups, and multinational corporations seeking smooth tax transitions and robust financial governance.
