How to Submit VAT Reconsideration Form in UAE?
A tax is a levy levied by the government on products, services, income, and other transactions in order to fund government services and expenditure. There are majorly two types of taxes in use:
A direct tax is one that the taxpayer pays to the government directly.
An intermediary collects the tax from the taxpayer on behalf of the government and pays it to the government as an indirect tax.
The VAT is an indirect tax placed on goods and services consumption and usage. It is invoiced at each phase of the supply chain. The expenses of VAT are borne by end consumers, while registered enterprises collect and account for VAT on behalf of the government.
On 1st of January 2018, the government of UAE implemented a Value Added Tax (VAT). The VAT rate is set at 5%. VAT will give the UAE with a new stream of revenue that will be used to maintain high-quality public services. It will also assist the government in accomplishing its goal of minimizing reliance on oil and other hydrocarbons as a source for the revenue.
VAT on Individuals in the Dubai/ UAE
The bulk transaction of goods and service will be subject to VAT, which basically is a general consumption tax charged. Exemptions may be given in a restricted number of cases.
As a result, the cost of living is anticipated to rise significantly, however this will depend on a person’s lifestyle and spending habits. If a person spends mostly on items that are exempt from VAT, he is unlikely to experience a big rise. The government will impose rules requiring firms to disclose how much VAT an individual must pay for each transaction. Individuals can make purchasing decisions based on this information.
VAT on Business in UAE
Businesses will be responsible for meticulously recording their revenue, expenses, and VAT charges. Registered firms and merchants will charge VAT at current rate to customers and will incur VAT on products and services purchased from suppliers. The difference in these amounts is either recovered or paid to the government.
How to Submit VAT Reconsideration Form in UAE?
VAT reconsideration in the UAE allows a taxed person to challenge the FTA authority’s decision. All businesses in the UAE should be aware of the VAT legislation, which will help them conduct their operations more successfully. Organizations who do not obey the Federal Tax Authority’s tax legislation will face VAT penalties and fines. There are countless instances where organisations follow the FTA’s laws and regulations yet nonetheless face fines and penalties. In such circumstances, if the taxpayer is not satisfied with the FTA’s judgement, he may seek UAE VAT Reconsideration. Any individual or company can submit an application to the FTA for UAE VAT reconsideration.The application must be submitted within 20 days following the authority’s sentencing decision. If you are dissatisfied with the authority’s judgement and believe that you have been unfairly punished, you have the right to make a VAT reconsideration request to the position in question. It is done with the intention of allowing the authority to examine the FTA’s penalty judgments.
How can I Apply for VAT Reconsideration?
The FTA website has a VAT reconsideration form. Businesses can put in and apply for VAT reconsideration in the country, UAE on an online basis. If you wish to appeal an FTA decision, you must submit the application and any supporting papers in Arabic. Where the application or supporting papers are filed in English, the FTA will not investigate.
What Documents would I need for VAT Reconsideration Form?
If you are unhappy with the FTA’s penalty decision, you have the right to ask them to review it. The VAT reconsideration form can be downloaded and filed by the tax registrant, tax agent, or non-registrant. Before filing a VAT reconsideration, make a strong case with evidence and supporting arguments for why a penalty should not be imposed. The following papers can be used to file a reconsideration request:
- Registration certificate for VAT
- The Emirates ID for registration
- Passport copy of the person for registration
- Proof of Authorization which is also known as the POA
- Registered mobile number
- Memorandum of Association or the MOA for verifying
- The total amount of penalty
- The date on which the penalty was levied
- A summary of the case
This application, as well as any supporting documents, must be written in Arabic. Anyone can submit this request to the FTA authority to have the decision reviewed in its entirety or in part. All of the reasons for reconsideration should be included. The maximum time limit is 20 days from the date of the authority’s decision. The FTA authority now has the responsibility of reviewing the judgement and issuing a fresh decision within 20 days of receiving the application.If the authority discovers that the taxpayer has engaged in tax avoidance, the authority may impose a penalty. Non-compliance and violations of federal law are punished harshly.
Steps to be Followed if you Want to Challenge FTA’s Review as you are Dissatisfied
According to tax advisors in Dubai, the FTA usually grants a waiver of fines or a favourable reconsideration of its rulings. However, there may be instances where the applicants are still unhappy with the authority’s review judgement. There are particular methods they can take to address their concerns about the FTA decision in such circumstances. Taxpayers can get advice from the top tax advisors in Dubai to have a thorough understanding of the process.
Tax Dispute Resolution Committee
If the applicant is dissatisfied with the FTA’s review judgement, he can file a request with the tax dispute settlement committee. Within 20 days after receiving the application, the committee will review the objections filed and make a decision. Within five business days of receiving the objection, the committee will notify the applicant of its decision.
If the total amount of Due Tax and Administrative Penalties assessed by the tax dispute settlement committee does not exceed AED 100,000, the judgement is considered final. Taxpayers are not permitted to take tax problems to the Competent Court without first filing an objection with the Committee.
Federal Court Litigation
Taxpayers who are dissatisfied with the Tax Disputes Resolution Committee’s judgement may file an appeal with the Competent Court. The court’s judgement on the tax issues has not been contested. Taxpayers must file an appeal with the court within 20 days after receiving notification of the Tax Disputes Resolution Committee’s judgement.
According to the Tax Procedures Law, an appeal can be filed with the Competent Court in the following circumstances:
- To object in whole or in part to the Committee’s decision.
- If the Committee does not provide a resolution on the objection presented.