VAT Audit is the process where the National Bureau for Revenue (NBR) will assess the general compliance level of a taxable person with the VAT legislation and verify if the net amount of VAT declared and the amount paid by the taxable person is accurate. The Audit File enables the NBR to audit VAT returns.
The tax audit is conducted to ensure that the taxpayer has provided complete and accurate information regarding his income, deductions and taxes. This is to be conducted by a Chartered Accountant. The entity must maintain proper books of accounts that are to be audited by a Chartered Accountant.