The complexities of UAE VAT regime and the Federal Tax Authority or FTA’s current targeting for tax evasion and avoidance means tax disputes are increasingly arising. There will be instances wherein you disagree with an assessment or decision that is made by the local tax authority. If you are in complete disagreement with a certain decision, you have the option of asking for it to undergo a review by the FTA. You can also the right in appealing to the decision with the UAE court system.
The Federal tax Authority offers 20 days to registered businesses to submit an application for VAT reconsideration or appeal. If you’ve been affected by the COVID-19 pandemic, the FTA offers extra weeks to appeal decisions. It is advised to send an appeal as quickly as possible. Applicable provisions on VAT reconsideration are as follows:
If a taxable entity has missed the 20 business days deadline for submitting an appeal to the FTA on time, it may still make an appeal provided that it can convince the Tax Dispute Resolution Committee of the FTA to allow for a late appeal. It will involve a consideration of reasons provided for lateness and it’s by no means a guarantee that a late filing of an appeal will be approved. Read more about Tax Disputes.
A taxable entity for the purpose of VAT in UAE has the right in appealing against decisions of the FTA including the following:
You may still be in disagreement to the decision of the FTA even after a review or request for VAT reconsideration. In such case, you can ask the UAE Tax Disputes Resolution Committee or TDRC in hearing your appeal. Your appointed regulated tax agent in Dubai must do so within twenty days from the issuance of the FTA’s review decision.
To submit your objection to the TDRC, the following documents must be submitted:
It is strongly advised to seek the help of VAT specialists like Farahat & Co. that are experienced in administrative disputes in UAE and managing tax matters. To date, we’ve seen positive outcomes for taxable entities in relation to mitigation of tax liabilities with the help of a team of seasoned tax professionals in UAE.
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