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.