During due diligence, buyers should verify the seller’s VAT compliance by reviewing VAT registration status, past VAT returns and filings, payment history, any outstanding VAT liabilities or audits, and correspondence with the Federal Tax Authority. Confirming proper invoicing and documentation practices ensures full compliance and reduces post-acquisition tax risk.

During due diligence in the UAE, buyers should review the seller’s VAT registration status, past VAT returns, FTA correspondence, and supporting invoices to confirm all taxes were correctly collected and remitted. It’s also wise to check for pending audits, assessments, or disputes with the FTA. Emotionally, this step can feel tedious but is crucial overlooking VAT issues can turn a smooth acquisition into a financial and legal headache, so doing it thoroughly brings peace of mind that you’re not inheriting hidden liabilities.