Common Audit Triggers
🔴 High Risk
- Large or frequent VAT refund claims
- Significant revenue with no VAT output
- Industry-specific red flags
- Whistleblower tips
🟡 Medium Risk
- Late filing history
- Inconsistent VAT returns
- Industry-wide audit waves
- Related-party transactions
The Audit Process
1
Notification Letter
NBR sends formal audit notification specifying the tax periods under review. You typically get 15 days to prepare.
2
Document Request
Detailed information request: VAT returns, invoices, contracts, bank statements, and accounting records.
3
Fieldwork
NBR auditors may visit your premises, interview key staff, and perform sample testing of transactions.
4
Draft Assessment
NBR issues draft findings. You have the right to respond, clarify, and provide additional evidence before finalization.
5
Final Assessment
Official assessment with tax, penalties, and interest. You can object within 30 days if you disagree.