Accounting Gate (AG) is a specialised Audit, Accounting and taxation firm. We are dedicated in offering services of audit, assurance, taxation, bookkeeping, feasibility study, set-up new business, accounting software, tax services, preparing financial statements and other accounting and management consultancy services for public and private companies across the UAE.
If you want your business to run smoothly than handover your accounts and VAT related task to us. We are assuring you that we will run your accounts and VAT related obligation with accuracy and timely. We have set of tremendous professionals who have vast knowledge of UAE accounting and VAT system and have successfully represented our clients in FTA.
|Service||TORs||Amount in AED|
|Accounting||Complete Book Keeping on QuickBooks (All financial Reports) ,2 visits/Month||1000/Month|
|Accounting +VAT Filing||Complete Book Keeping on Quick Books (All financial Reports) ,2 visits/Month & VAT Filing.||1500/Month|
|Audit||Complete financial Audit with Audit Report||1800/Year|
|VTA Registration||With verified documents||400/case|
|VAT Refund request||With verified documents||2000/Case|
|VAT Reconsideration to FTA on Fine/Penalties||Applicable with in 20 days of fine date||900/Request|
|VAT Voluntary Disclosures||Complete and verified information||600/Disclosure|
|VAT De-Registration||With verified documents||1000/case|
|Sr||Non-Compliance||1st time penalty AED||Each time Repetition, Penalty AED|
|1||In Record keeping as prescribed BY FTA||10,000||50,000|
|2||In Provision of record in Arabic When asked by FTA||20,000|
|3||In Mandatory Registration with FTA with in time period||20,000|
|4||In De Registration with FTA||10,000|
|5||Failure to inform FTA about amendment in Tax record||5,000||15,000|
|6||In Regular Tax return filing||1000||2000 (In case in 24 months)|
|7||In Tax Payment to FTA||2% of Payable tax to FTA immediately after due date, 4% on 7th day and 1% daily after 30th day and it may lead up to 300%.|
|8||In correct tax return||3,000||5000|
|9||In Failure to account for Tax due on imports of good||50% of un declared Tax|
|10||Missing Tax invoice, credit notes or any alternative document||5,000|
|11||Incorrect Tax Invoice, credit notes||5,000|
If any registered Person has received penalties from authority (FTA)’ can apply to the Federal Tax Authority for VAT reconsideration within 20 working days from the reception of such penalty. If you are not satisfied with the Authority (FTA)’s decision of imposed of any penalties/Fines.
Then Article (27) of the Federal Law No. (7) of 2017 on Tax Procedures allows you to submit your reconsideration application in an online available form on (FTA)’s portal. Any person who has received the penalty can submit UAE VAT reconsideration for any decision taken up by the FTA, and such an application must be submitted online in Arabic only.
As Law states
- Any person may submit a request to the Authority to reconsider any of its decisions issued in connection to him, in whole or in part, provided that reasons are included, within 20 business days from him being notified of the decision.
- The Authority shall review a request for reconsideration if it has fulfilled the requirements and issue its justified decision within 20 business days from receipt of such application. The Authority shall inform the applicant of its decision within five business days as of the issuance thereof.
The (FTA) can either remove the penalties imposed or can take the stance of retaining the penalty which Varies on case to case basis. The authority may impose penalties if they come across a situation that has led to tax evasion(Article 77), non-compliance(Article 76), late Registration/Deregistration (Article13,21) , Failure to file VAT Returns within the time frame, VAT late Payment (i.e. up to 300% of Amount Payable to FTA), Submission of wrong documents or incorrect information and no proper records.
Seven information’s required to file the VAT reconsideration Form are1)VAT registration certificate, 2)Emirates ID for the responsible person for registration,3) Passport copy for the responsible person for registration ,4)Registered mobile number and memorandum of association to verify the authorized person, 5)amount of penalty,6) date of the penalty and 7)detailed summary of the case.
VAT reconsideration can be filed on the basis of above information. Along with this application and all the supporting documents need to be submitted to FTA in Arabic only.
In case of you are no satisfied with the decision taken by the FTA even after submitting the VAT Reconsideration Form, then in such circumstances the case can be taken to the Tax Dispute Resolution Committee.
You can raise objection if the VAT reconsideration request is rejected by the authority to the Tax Dispute Resolution Committee within 20 business days from the date of notification.
Under following circumstances, you cannot raise your case in the Tax Dispute Resolution Committee
- If the reconsideration was not filed with the FTA earlier
- If the penalties imposed by the FTA are not settled
The committee will re-assess the case again and make a decision within 20 working days from the date of receiving the objection. The committee may extend the time frame to an additional 20 business days if the authority finds any reasonable facts about the case.
If The tax payable is less than AED 100,000/- then Tax Dispute Resolution committee’s decision will be considered as final. Further, the taxable person who has the penalty of more than 100,000/- and wants to challenge the decision of the committee can approach the federal court within 20 working days from the date of notification of the objection.
When a person/Business registered to FTA made an error or omission in tax return, tax assessment, or tax refund application. Then a voluntary disclosure should be made by a taxable person to notify the Authority. A voluntary disclosures are required to be made in the following cases: per Article 8 of Cabinet Decision No. 36 of 2017 on the Executive Regulation of Federal Law No. (7) of 2017 on Tax Procedures
- where a filed Tax Return or a Tax Assessment is incorrect resulting in a calculation of the Payable Tax being less than required i.e. an underpayment of tax due, in an amount of more than AED 10,000;
- where a filed Tax Return or a Tax Assessment is incorrect resulting in a calculation of the Payable Tax being less than required i.e. an underpayment of tax due, by not more than AED 10,000 and there is no Tax Return through which the error can be corrected; or
- where a filed Tax Refund Application is incorrect, resulting in a calculation of a refund to which the Taxpayer is entitled being more than the correct amount, unless the error was a result of an incorrect Tax Return or Tax Assessment.
- A registered person must have to made voluntary disclosure to FTA within 20 business days of discovering the error or omissions.
- The Supporting Documentation section will ask the taxable person to upload a letter which provides background facts and a detailed description of the error(s) disclosed in the Voluntary Disclosure Form. The letter should describe the reason for the voluntary disclosure and the errors disclosed, and details of the affected sections of the tax return.
Next, the Declaration and Authorized Signatory section should be reviewed to ensure the correct details are prepopulated, and then the taxable person should check the declaration if they agree with it. After reviewing the information entered in the Voluntary Disclosure Form, the taxable person can click the Submit button at the bottom right corner of the screen. An incomplete form can be saved by clicking on Save as draft or the form can be cancelled by clicking the Cancel button.
The taxable person can then click on the VAT 211 – Voluntary Disclosure/Tax Assessment tab to see a summary of the submitted voluntary disclosures.
Fine & penalties
There are Two types of penalties levied by FTA
Fixed Penalty: The first time you file a Voluntary Disclosure, or Form 211, without any notification from the FTA, you will have to pay a fixed penalty of AED 3,000. From then on, every subsequent submission of Form 211 will require you to pay a penalty of AED 5,000 If you identify the error and submit Form 211 before any notification from the FTA, the percentage-based tax will be set at 5% of the difference in tax liability.
Percentage Based Penalty: If you identify the error and submit Form 211 after the FTA has issued a tax assessment, but before the FTA initiates a tax audit, the percentage-based tax will be set at 30% of the difference in tax liability.
If you identify the error and submit Form 211 after the FTA has initiated a tax audit, the percentage-based tax will be set at 50% of the difference in tax liability.
We have a team of proven professional who are serving our clients with passion and honesty. We can assure you that we will handle your VAT, Accounts and financial matter with perfection and let you free from above mentioned task so that you can give 100% in growth of your business rather than get stuck in office issues.
If you have VAT related fines like, VAT late filing, VAT late payment, Late Registration, Delay in de-registration fines, please contact us as their is official process of reconsideration where your fines & penalties can be waved off fully or partially as per discretionary power of FTA committee. A comprehensive reconsideration request has more chances to be waived off the fines. We have a expert team who will handle your reconsideration request.