The Federal Tax Authority is the regulatory body in the UAE in charge of the VAT laws and to collect the taxes and penalties on behalf of the government. The business firms and entrepreneurs are responsible to be aware of the tax laws of the country in order to ensure the smooth running of the company. If a business entity fails to follow the tax laws issued by the Federal Tax Authority, they will need to pay the fines and taxes. Tax payments and penalties decided by the FTA, as per the current tax laws, are to be mandatorily paid by the business entity. But there are instances where in a VAT registrant or a taxpayer disagree with the decisions of the FTA, they can apply for a VAT reconsideration.
UAE VAT Penalty Reconsideration
The taxpayer who received a penalty from the Federal Tax Authority can apply for a VAT penalty reconsideration in the UAE for the review of the authority. It should be submitted within the 20 business days after receiving the penalty. The authority will review the decision and will remove the penalties if the taxpayer could prove his stand through the UAE VAT reconsideration. It actually gives an opportunity for a taxpayer to appeal for the review of the decision made by FTA.
Process of applying for the UAE VAT Penalty Reconsideration
The VAT penalty reconsideration can be submitted through online. VAT reconsideration form is available on the website of the Federal Tax Authority. The concerned business entity can submit their application through the website and should provide the supporting details in Arabic only, English will not be acceptable in such cases.
Documents required to submit the VAT Penalty Reconsideration
When a taxpayer is not convinced with the decisions taken by the FTA, taxable person can submit their request for the VAT reconsideration. The VAT reconsideration forms can be submitted by the tax registrant, non-registrant or by a tax agent and this submission must be supported by strong evidence and relevant documents to prove why a penalty should not be imposed on them.
The following are the documents required for the submission of UAE VAT reconsideration;
- The certificate of VAT registration
- Emirates ID
- Passport copy
- Proof of authorization
- Formal letter of case study explaining the reasons along with supporting documentation with legal references
Date and amount of penalty, registered mobile number and memorandum of association are some of the important details which should provide along with the above-mentioned documents. FTA will respond within the 40 business days. And they will request for additional information for incomplete information. And the response from FTA after the re-submission of application will also take up to 40 business days.
How MAATS can help your business?
As part of making an appeal for the reconsideration of penalties, a notice has to send. It should be done within 20 days from the date of notice or letter issued by FTA informing about the penalty amount which should be paid. The appeal should be written in Arabic and should send within 20 days itself, late applications can be rejected. Approaching a tax consultancy to ensure the timely reconsideration process is inevitable. Our experts in MAATS have years of experience in tax consultancy services and will make you experience the ease of procedure in the VAT reconsideration processes. MAATS assisting clients for all their VAT penalty reconsideration processes from the submission of the application to the final discussion with the FTA representatives. We continue to help our clients to be VAT compliant and offering a wide range of VAT related services for companies across the UAE.
