Understanding VAT Reconsideration in the UAE
Businesses registered for Value Added Tax (VAT) may occasionally face penalties due to non-compliance or misunderstandings in the UAE. If a company believes that a penalty or decision by the Federal Tax Authority (FTA) is unjustified, it has the right to submit a VAT reconsideration request.
What Is a VAT Reconsideration Request?
A VAT reconsideration request is an official appeal submitted to the Federal Tax Authority (FTA) by a business or individual who disagrees with a decision made by the FTA. It provides an opportunity to explain your case and request the reversal or adjustment of that decision.
Common scenarios that might justify a reconsideration request include:
- Administrative penalties (e.g., late filing or payment fines)
- Rejected VAT refund claims
- Denied VAT registration or deregistration
- Disputes over submitted tax returns or audit findings
The goal is to provide a legitimate explanation and supporting documents that prove the FTA’s decision may have been made in error or without complete information.
Eligibility for VAT Reconsideration
A VAT reconsideration request can be filed when a business disagrees with a decision made by the FTA, such as:
- Imposition of administrative penalties.
- Rejection of VAT refund claims.
- Denial of VAT registration or deregistration applications.
It’s crucial to note that the request must be submitted within 40 business days from the date of the original decision by FTA.
Step-by-Step Process to File a VAT Reconsideration Request
Filing a reconsideration request requires a clear understanding of the process. Here’s a breakdown of the key steps:
1. Log in to the FTA e-Services Portal
You must be registered with the FTA and have an active online account. Access the portal at tax.gov.ae.
2. Complete the Reconsideration Form
Select “Request for Reconsideration” under the services section. Fill out the form carefully. You will be asked to provide:
- FTA decision reference number
- Details of the FTA decision
- Reason for disagreement
The user manual is provided for your convenience by FTA
The explanation must be written in Arabic, as it is the only language accepted by the FTA for official submissions.
3. Attach Supporting Documents
Upload all necessary documentation to support your claim. This might include:
- FTA decision letter or penalty notice
- Accounting records or bank statements
- Copies of submitted VAT returns
- Emails or correspondence related to the issue
Make sure all documents are accurate and organized to avoid rejection due to incomplete information.
4. Submit the Application
Once your form and documents are ready, submit the request through the FTA portal. You will receive a confirmation email that your request has been received.
5. Wait for FTA’s Response
The FTA typically responds to reconsideration requests within 45 business days from the date it received your completed reconsideration application. The decision will be communicated via your registered email and account on the portal.
Important Tips to Keep in Mind
- Always keep a copy of all submitted documents and confirmations for future reference.
- Use clear, factual language in your explanation—avoid emotional appeals.
- Ensure that your VAT filings and records are fully up to date before filing.
- Consult a VAT expert to prepare your request professionally.
KLOUDAC: Your Trusted Partner for VAT Reconsideration
Submitting a VAT reconsideration request is a legal process that demands precision; small errors can lead to rejection. KLOUDAC’s expert team ensures your appeal is handled professionally from start to finish by analyzing penalties and issues in detail, gathering and preparing all necessary documents, drafting appeal letters in the correct format and language, communicating directly with the FTA, and offering guidance to improve your VAT compliance.
