VAT reconsideration is a procedure that businesses can apply for if they are unhappy with the penalties assessed by FTA. This procedure is made possible through Federal Law No. (7) Of 2017 on Tax Procedures. The purpose of VAT reconsideration is to address the grievances of businesses and may lead to a waiver of the penalties. If you are looking for VAT reconsideration services in UAE, read this article once.
Tax registrant:
There are several reasons a Tax registrant may want to reconsider VAT registration. Some businesses find that voluntary registration can make them look larger and more stable. Others may find that it makes them more competitive and may help them secure a bidding contract. In addition, voluntary registration can affect pricing structures.
Non-registrant:
A VAT reconsideration is an opportunity to get a penalty decision reconsidered by the Federal Tax Authority (FTA). This process is available to both tax registrants and non-registrants. It is important to submit a strong case and include supporting documentation to be successful. In many cases, the FTA will ask for additional information and can take up to 40 days to respond.
Process of applying for VAT reconsideration:
If you have been notified by the VAT Authority that you have received an incorrect VAT invoice, you may be entitled to a VAT reconsideration. The FTA will examine your application and background and decide within twenty working days. If your Clarification request is incomplete, the FTA will request more information. Once the FTA has made its decision, you will be notified within five days of the decision.
Timeframe:
If you have paid too much VAT and you are looking for relief, you can apply for VAT reconsideration. You can apply on the official portal of the Federal Tax Authority. The application informs the authority that you have made an error in filing your VAT refund or return. It also tells the authority that you are not happy with the decision of the FTA to levy VAT penalties against you. This proactive approach helps you to get the tax penalties removed.
Form:
If you’ve received a VAT penalty and believe you’ve complied with the laws, you may wish to consider filing a Form for VAT reconsideration with the FTA. The FTA is a federal agency that can assist in the process. However, it cannot guarantee the outcome of your application.
