Challenge FTA’s Decisions: Submit VAT Reconsideration Form in the UAE
Business owners are required to have sound knowledge about the VAT/tax laws in the UAE as a failure to comply with the rules and regulations will attract hefty penalties. In the UAE, the Federal Tax Authority (FTA) is the competent authority that regulates the VAT laws and takes charge of the tax collections and imposition of penalties for non-compliance. However, if the businesses are not satisfied with the decisions made by the FTA (including the penalties), they can officially request the authority to revise it by filing a VAT reconsideration form as per article 27 of the UAE tax procedure law. The VAT reconsideration form should be submitted to the FTA in Arabic and hence the businesses require the assistance of reputed tax agents in Dubai, UAE.
What is the VAT Reconsideration Application?
The UAE government has introduced the tax reconsideration request option to address the grievances of the businesses that are not satisfied with the penalties and other decisions imposed on them by the FTA. The FTA is willing to accept the disagreements of the taxable persons regarding the penalties and also to revise its previous decision if the taxable person’s reconsideration request is valid. The VAT Reconsideration form is a request application submitted by the VAT registrant or tax agent to the FTA along with ample evidence to show that the decision on the penalty or other issues should be revised.
What are the Situations to Submit the VAT Reconsideration Form?
The taxable persons mainly submit the VAT Reconsideration form to the FTA to get a waiver on the penalties. There are many reasons for the FTA to impose VAT penalties on taxable persons. The following are the major reasons that attract VAT penalties in the UAE
- Delay in VAT Return filing
- Delay in Settlement of due tax
- Late registration of VAT
- Late deregistration of VAT
- Lack of Proper Records
- Submission of wrong documents/information
The UAE VAT reconsideration form can also be submitted when the taxable person disagrees over FTA’s decisions regarding tax assessments, VAT rate treatment, and exception of registration, etc. Consult with reputed tax consultants in Dubai, UAE to know more about the legal requirements.
How to Submit VAT Reconsideration Application?
The FTA mandates that the VAT reconsideration form should be submitted within 20 business days as of the receipt of the authority’s decision. The tax reconsideration request application can be submitted online through the FTA website. Tax agents in Dubai say that the FTA is generally responsive to the requests and tends to issue a waiver on the penalties if the application contains valid justification for the VAT reconsideration request.
Along with the application, all the supporting documents and evidence should also be in the Arabic language. Foreigners who are taxable persons often struggle with the language barrier and the knowledge about the laws. However, the assistance of the bets tax agents in Dubai makes the process hassle-free.
The FTA will review the request for reconsideration to see if the application has met all the requirements. The authority will issue its justified decision within 20 business days as of receiving the application. The FTA will inform the applicant about its decision on the request within five business days as of the issuance.
Steps to Follow if Business is Not Satisfied with FTA’s Review
As per the tax agents in Dubai, the FTA issues a waiver on its penalties or a favourable review of its decisions in most cases. However, situations may arise when the applicants are still not satisfied with the review decision made by the authority. In such cases, there are specific steps they can follow to resolve their disagreements over the FTA decision. The taxable persons can consult with the best tax consultants in Dubai to have in-depth knowledge about the procedure.
1. Tax Dispute Resolution Committee
The applicant can submit a request application to the tax dispute resolution committee if he is not satisfied with the review decision made by the FTA. The committee will examine the objection submitted and will make a decision within 20 days of receiving the application. The committee will inform the applicant about its decision on the objection within five business days as of its issuance.
The decision made by the tax dispute resolution committee is regarded as final if the total amount of the Due Tax and Administrative Penalties determined does not exceed AED 100,000. The taxable persons are not allowed to raise the tax disputes before the Competent Court without first submitting the objection to the Committee.
2. Federal Court Litigation
Taxable persons who are not satisfied with the decision made by the Tax Disputes Resolution Committee can appeal in the Competent Court. The decision made by the court on the tax disputes remains unchallenged. However, the taxable persons should submit the appeal to the court within 20 days after the Tax Disputes Resolution Committee has communicated its decision.
The Tax Procedures Law states that the appeal can be submitted to the Competent Court in the following instances:
- To Object to the Committee’s decision in whole or part
- If the Committee doesn’t issue a decision regarding the objection submitted
Choosing the Right Tax Agents in Dubai for VAT Reconsideration
Ensuring VAT compliance is a legal compulsion in the UAE or else the taxable persons have to face hefty penalties by the FTA. The FTA may penalize the taxable persons for various reasons including delay in VAT return submission, delay in settlement of due tax, late registration, and deregistration of VAT, etc. However, the taxable person can object to the decision made by the FTA by submitting a VAT Reconsideration request.
Submitting a VAT reconsideration request to the FTA requires sound knowledge about the tax laws and the Arabic language. However, foreign businesses may find this tough and in such cases, the assistance of reputed tax agents in Dubai becomes a necessity for the taxable persons. Jitendra Chartered Accountants (JCA) is one of the most reputed tax consultants in Dubai which has a team of highly qualified tax agents. JCA’s tax agents assist the businesses in properly preparing and submitting the reconsideration form to the FTA with amole evidence justifying the request