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VAT Voluntary Disclosure

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VAT Voluntary Disclosure In UAE

The Federal Tax Authority (FTA) encourages individuals and businesses to apply accurate VAT implementation and tax calculations on goods and services. If an entity fails to levy UAE tax laws then he/she has to pay a hefty amount of non-compliance fines. However, the regulatory authority gives you an opportunity to rectify your mistakes by submitting a VAT voluntary disclosure in UAE. It’s a proactive approach to telling FTA about any error in tax-paying or collecting. Our well-qualified tax experts in Dubai are dedicated help companies with VAT voluntary disclosure submission and saving them from unnecessary penalties.

What Is VAT Voluntary Disclosure? 

A VAT voluntary disclosure is an official form provided by the Federal Tax Authority (FTA). It enables registered businesses to notify authorities about mistakes, errors, and changes in submitting a VAT Return or applying for a VAT Refund in Dubai. The taxable person has to fill out the “VAT211” with all supporting documents within 20 business days after knowing the mistake. Here we will discuss the FTA voluntary disclosure guide on the application and submission of the request.

Is VAT Voluntary Disclosure Necessary In UAE?

As per Federal Law No. 7 of 2017 on the Tax Procedure Law as well as the Cabinet Decision No. 36 of 2017 on the Executive Regulations on Federal Law No. 7 on Tax procedures each registered entity has to submit the voluntary disclosure to the FTA when an entity realizes that they’re not paying the correct amount of taxes. The Federal Tax Authority has a team of expert VAT auditors who identify tax mistakes while conducting tax assessments and tax audits. This is advisable for business owners to notify authorities before they impose non-compliance penalties. The timely submission of VAT voluntary disclosure form 211 will decrease the number of fines. Voluntary disclosure of VAT also fosters good relationships with tax authorities.

Circumstances For A VAT Voluntary Disclosure

Under Article 8 of Cabinet Decision No. 36 of 2017 on the Executive Regulation of Federal Law No. (7) of 2017 on Tax Procedures, a business must submit a VAT voluntary disclosure in the following scenarios:

  1. When an individual or business finds inaccuracy in their tax assessment or VAT return filing, specifically when the payable tax is being less than the required. In the amount of more than AED 10,000, in this situation, the entity must submit the VAT return voluntary disclosure to the FTA.
  2. If a registered business identifies mistakes in their tax assessment or VAT return filing, specifically when the payable tax is being less than the required. To the amount of not more than AED 10,000, then they must submit the VAT return voluntary disclosure to the relevant authorities to rectify errors.
  3. As soon as a Taxable Person becomes aware that a tax refund application has been submitted incorrectly, and the refund amount is more than the correct amount. So, the entity must notify the authority before FTA levies non-compliance VAT fines and penalties.

Entities Not Subject To VAT Voluntary Disclosure

Business entities are not required to submit a voluntary disclosure for VAT if the Payable Tax does not exceed AED 10,000, the taxable person can fix the error in the next tax return.

VAT Voluntary Disclosure Time Limits

All registered businesses in the United Arab Emirates can apply for VAT Voluntary disclosure in a specified time frame defined by the FTA. The taxable person must submit the VAT voluntary disclosure within 20 business days of starting from the date of being aware of such errors.

How To Submit A Vat Voluntary Disclosure In UAE

An online Voluntary Disclosure form can be submitted via the eServices section of the Federal Tax Authority’s website under the VAT section. The VAT voluntary disclosure 201 for VAT return appears. Just click on the ‘Submit Voluntary Disclosure’ button. The form has prepopulated boxes about the basic details of the taxable person and tax period. The applicant must add the verified supporting documents along with the updated information about the VAT refund/return. The authorities may ask you for further details through email. It’s a critical process because if a taxable person fails in the submission of the voluntary disclosure, then the authorities don’t accept the appeal and also impose an additional penalty on top of it.

Take Advantage Of Our VAT Consultants

It is essential for business owners to understand the VAT laws in the United Arab Emirates. However, if the taxable person identifies mistakes and omissions in VAT return/ refund, then it’s a golden opportunity for them to notify authorities before FTA addresses you. In this situation, you can hire our VAT consultants to avoid penalties. Bestax Chartered Accountants and VAT consultants in Dubai help you in preparing and submitting your application for VAT voluntary disclosure. Our tax advisors have sound knowledge and experience in VAT return filing and VAT refund calculation. Our team of experts reviews all of your previous records reviews errors & notifies authorities in the best manner. We assist you in all follow-up queries until your application is approved by the FTA. Contact us today to save your business from being penalized!

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However, I was the head of the finance department yet still found it difficult to conduct a financial audit in accordance with UAE regulations. Although, due to the competence and experience of BextaxCA's qualified auditors, all my concerns have been resolved

ylie Johnson

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As per FTA requirements, the Bestax Chartered Accountants in UAE assisted me with VAT registration and filing. I personally consult with their tax experts to ensure they have the expertise necessary to provide timely answers

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