The Federal Tax Authority (FTA) is the official tax regulatory body of the United Arab Emirates. It is responsible for implementing and collecting taxes and non-compliance fines to individuals or businesses.  The authority imposes penalties if a taxable entity fails to implement VAT laws as per standards. However, the companies have an amazing opportunity to apply for VAT penalty reconsideration in UAE if they are not satisfied with the authority’s reason for charging fines. Our VAT consultants in Dubai, have sound knowledge of authorities and tax laws in the UAE that help you to submit FTA reconsideration form in the best manner. 

What is a VAT Reconsideration Form?

The VAT reconsideration form is an official request to the FTA to reconsider their decision of imposing a penalty. The regulatory authorities enable registered businesses to submit applications in Arabic. As per article 27 of the UAE tax procedure law, the VAT penalty reconsideration should be submitted with required documents and information to the FTA. There is a proper way of doing this, we will discuss FTA standardized procedures in this regard. 

Reasons for Filing a VAT Penalty Reconsideration 

The UAE government revised VAT fines and penalties in 2021 to relieve individuals or businesses in the case of non-compliance. But many times companies unintentionally fail to follow the tax procedure law of the state which attracts sanctions or penalties. Then taxable persons must submit the FTA reconsideration form with a valid reason for reviewing the penalty decision. The disagreement is only approved if the applicant provides evidence with the reconsideration request. There are many circumstances in which FTA can levy VAT penalties on the taxable entity.

  • Inaccuracy/ delay in filing VAT Return 
  • VAT late payment penalty
  • Delay in VAT registration
  • Errors in VAT voluntary disclosure
  • Late deregistration of VAT
  • Submission of false information/ documents
  • Lack of maintenance of bookkeeping records

There are situations in which the taxable entity can apply for the VAT penalty reconsideration when they are unsatisfied with FTA assessments, exemption from registration, VAT rate treatment, etc. The professional way of resolving these issues is to hire a team of professional tax experts in Dubai that fully understand the UAE legal requirements.

Entities Subject to FTA Penalty Reconsideration

The VAT penalty reconsideration form can be submitted by any legal or natural person, who wants the authorities to review their VAT non-compliance decision. A Registrant/ Non-registrant and a certified Tax Agent can apply on the official portal of the Federal Tax Authority (FTA).  The authority just requires logical reasoning and evidence for applying a reconsideration request.

How to Apply for VAT Penalty Reconsideration?

Appealing for VAT penalty reconsideration in the UAE is a critical procedure that needs expertise and knowledge of the country’s tax laws. The vat reconsideration form is available on the official portal of the Federal Tax Authority. You must know some essential guidelines by authorities before requesting the VAT reconsideration: 

  • VAT penalty reconsideration form can be accessed only on the official website of FTA.
  • The complete process is online, so the applicant must have hard and soft copies of the documents. 
  • Application and all proof for disagreement must be in the Arabic language because authorities will not look into it if the supporting documents are in English.
  • The reason is very clear and logical (why you rejected the FTA decision), in this situation, you must take advice from the best VAT consultants in UAE
  • The applicant should also explain which alternative treatment he/she believes should have been applied to its case.

Supporting Documents Needed for VAT Reconsideration 

For making your case strong, you must prepare a list of valid documents for VAT penalty reconsideration in the UAE. It helps authorities to accept your appeal as soon as possible and waive off your VAT fines. In order to submit the UAE VAT reconsideration form, the following documents are needed:

  1. Authorized Signatory Passport copy 
  2. Emirates ID of the authorized signatory
  3. Authorization Proof (POA or MOA)
  4. A formal case letter along with legal references

Time Frame of VAT Penalty Reconsideration 

As per Article-27 of Federal Law No. (7) Of 2017 on Tax Procedures, VAT penalty reconsideration application should be submitted within 40 days of getting penalized by FTA. After submission of the application, the FTA shall respond on the VAT penalty reconsideration within 20 business days. In this time frame, regulatory authorities will reconsider its decision, evaluate the case and verify all the supporting documents. If the applicant’s appeal is accepted, then he/she receives a confirmation email from FTA and the penalty amount will be reversed in the applicant’s FTA account.

Get Assistance from Bestax Chartered Accountants 

The Bestax Chartered Accountants and VAT consultants in Dubai assist taxable persons in multiple VAT compliance services. It includes VAT registration or deregistration, VAT voluntary disclosure, VAT return filing and VAT refund, etc. A failure to comply with any of those activities may attract heavy fines and penalties. We help you in all processes of preparing your documents, submitting the VAT penalty reconsideration form, and proofing your case with strong evidence. We also assist you to  translate documents for clients to remove the language barrier. We promise you 100% guaranteed results and make this process hassle-free. Just contact us 

Email: info@bestaxca.com
Mobile: +971 56 7981808