A clean audit trail means that for any transaction in your books, you can produce: the original document (invoice, receipt, contract), the accounting entry, and the bank record showing payment. UAE VAT law requires businesses to maintain records for a minimum of five years. Under corporate tax law (Federal Decree-Law No. 47 of 2022), the same minimum applies. Cloud accounting software like Xero or QuickBooks creates an audit trail automatically if used correctly.
Watch out: Deleting or modifying accounting entries after the fact — even with good intentions — breaks the audit trail and is a red flag in any FTA inspection. Use credit notes and correcting journals instead.
See also: Bookkeeping, Audit, Bank Reconciliation
