UAE VAT Reconsideration

VAT Reconsideration

UAE VAT reconsideration allows a taxable person to appeal for the review of the decision made by FTA. All the companies in UAE must be aware of the tax laws to run their businesses smoothly. If the companies do not follow the tax laws issued by the Federal Tax Authority (FTA), they will get VAT fines and penalties.

There are many situations when the businesses follow the rules and regulations of FTA and still get fines and penalties. In such circumstances, the taxpayer is not convinced with the decision of FTA. In such cases, the taxpayer may apply for VAT Reconsideration.

What is UAE VAT Reconsideration?

Any business or a person who received a penalty from FTA can apply for VAT reconsideration in UAE within 20 business days after receiving the penalty. The authority will review the decision and might waive off the penalties if the business proves the case by UAE VAT reconsideration.

How to apply for UAE VAT Reconsideration?

UAE VAT reconsideration form is available on the FTA website. Businesses can submit VAT reconsideration online. If you wish to submit a reconsideration form about any decisions made by FTA then you must submit the application and any supporting documents in Arabic only. FTA will not look into any cases where an application or supporting documents are submitted in English.

Documents required for the VAT Reconsideration Form?

If you are not agreed with the penalty decision taken by the Federal Tax Authority (FTA), it is possible to request them to reconsider the decision. VAT reconsideration form can be submitted by the tax registrant, non-registrants, or by a tax agent. 

Before submitting a VAT reconsideration, you must prepare a strong case with evidence and justified reasons that why a penalty should not be imposed.

Following are the documents required for the submission of the UAE VAT reconsideration form:

1. Passport copy of the authorized signatory
2. Emirates ID of the authorized signatory
3. Proof of Authorization (POA or MOA)
4. Formal case study letter detailing the facts of the matter along with the supporting documentation with legal references

Response Duration of UAE VAT Reconsideration

For valid and complete Clarification requests, a response may take up to 40 business days. For incomplete requests, the FTA will request additional information, and a response can take up to 40 business days after the re-submission.

Xact Auditing is clearly well placed to assist clients with any reconsideration application, and has a wealth of local and international experience in assisting clients in precisely this area of the application of the VAT laws applicable to businesses operating in the region.

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