Businesses that function in the UAE must have thorough knowledge about the Tax Laws in the region. A failure to comply with the VAT/Tax regulations will attract heavy penalties. The Federal Tax Authority (FTA) is the Governing Authority that regulates tax laws, tax collections and penalties for non-compliance.

However, if the businesses are not satisfied with penalties imposed by FTA, they can officially request the Authority to revise it by filing a VAT reconsideration form (as per Article (27) of the Federal Law No. (7) of 2017 on Tax Procedures). This option is to address the grievances of the businesses that are not satisfied with the penalties levied or other decisions imposed on them by the FTA and to get a waiver on the penalties.

The request for reconsideration must be submitted via the FTA’s website within 20 business days from the date of being notified of the decision being reconsidered. The request form must be duly filled in Arabic for submission, otherwise it will be rejected. Along with the application, all the supporting documents and evidence should also be submitted in the Arabic language. You can avail assistance from experienced Tax agents in Dubai to address the language barrier and gain expert knowledge on the tax regulations.

FTA may levy penalties on businesses for the following reasons:

• Failure to file VAT Returns within the time frame
• Delay in settlement of due tax
• Late VAT registration
• Late VAT deregistration
• Lack of proper records or structured documentation
• Submission of erroneous documents/ incorrect information

The UAE VAT reconsideration form can also be submitted when the taxable person disagrees over FTA’s decisions such as VAT rate treatment, exception of registration and other tax assessments.

Documents required to file the VAT Reconsideration Form:

• VAT Registration certificate
• Emirates ID for the responsible person for registration
• Passport copy for the responsible person for registration
• Registered Mobile number and Memorandum of Association to verify the authorized person.
• The amount of penalty
• The date of the penalty
• A detailed case summary

NOTE: The FTA will not look into any case where the application or supporting documentation submitted is in English.

Clarify your queries with reputed tax consultants in Dubai, UAE to know more bout the legal obligations.