A business or individual that receives a tax penalty from FTA can apply for a VAT reconsideration in UAE within 20 business days of receiving the penalty. Providing proof of the reasons for VAT reconsideration would allow the authority to review the decision and waive the penalties for late VAT payments.
The FTA's website provides a form for VAT reconsideration. Companies can submit VAT reconsideration through the website. However, they must submit the reconsideration form and supporting documents in Arabic to appeal any decisions made by FTA. The FTA won't consider a request or supporting documents submitted in English.
It may take up to 40 business days to respond to a valid and complete Clarification request. FTA will ask for additional information if incomplete requests are submitted, and it can take up to 40 business days for the FTA to respond.
Various documents are required for the VAT reconsideration form in UAE, and it's best to seek guidance from a qualified tax consultant such as AMCA to ensure you have a comprehensive list and all necessary details. AMCA Auditing can provide expert advice and assistance to help you navigate the VAT reconsideration process smoothly.
AMCA Auditing excels at assisting clients with any reconsideration applications. In addition, we have extensive experience assisting clients in applying VAT laws that are useful to businesses operating in the region.
UAE generates new income from VAT. As a result, high-quality public services can continue to be provided. Additionally, it will reduce UAE's reliance on oil and hydrocarbons as a revenue source.
As of 1 January 2018, VAT was introduced across the UAE.
Businesses are responsible for keeping careful records of their income, costs, and associated VAT charges. VAT is charged to all registered businesses and traders at the prevailing rate and is incurred on the goods and services they purchase from suppliers. Differences in these amounts are reclaimed or paid to the government.