VAT Penalty Reconsideration in UAE

VAT Penalty Reconsideration in UAE

VAT Fines & Penalties in UAE | FTA VAT Fines in UAE | VAT Penalty Reconsideration in Dubai | VAT Reconsideration Services | VAT Fines & Penalties in UAE In Dubai, Simply Finance Accounting Services is an FTA Certified Vat Consultant. The Federal Tax Authority is the UAE’s administrative body in charge of the country’s VAT rules, as well as the management and collection of federal taxes and fines/penalties. In order to conduct responsible fiscal planning, corporate organisations and entrepreneurs must be mindful of the country’s tax laws.

In cases where taxpayers are dissatisfied with the authority’s decision, they can apply in Dubai for VAT Penalty Reconsideration under article (27) of Federal Law No. (7) of 2017.

When would you ask for a Reconsideration of VAT Penalty?

Vat Penalty Reconsideration in Dubai can be filed within 20 working days of receiving the penalty (for example, a VAT late payment penalty). This vat reconsideration can be filed by any company who claims they have been wrongfully penalized. It must be completed in Arabic and online.

How does the FTA handle requests for reconsideration of VAT penalties?

Within 20 working days of receiving the submission, the FTA will review the details of the case and make a decision. The FTA will notify the applicant of its decision within 5 days of making it. Depending on the circumstances, the FTA has full power to reverse or not reverse the fine.

VAT Fines in the United Arab Emirates

  • VAT administrative penalty: The FTA imposes these fines when businesses fail to comply with or violate the provisions of Federal Law No. (7) of 2017.
  • Penalties for tax avoidance are levied on businesses who want to avoid paying taxes or reduce their dues by using fraudulent methods.

What should one do if the FTA’s decision does not satisfy them?

If you disagree with the FTA’s decision and feel you have grounds for reconsideration, you may appeal to the Tax Dispute Resolution Committee. Such an objection must be made within 30 days of obtaining the FTA’s rejection notice. In the following two situations, you are unable to object to the FTA’s decision:

  • If you haven’t already lodged a request for reconsideration with the FTA, you can do so now.
  • The fines imposed have yet to be determined.
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The Tax Dispute Resolution Committee will review the case and make a decision within 20 working days; however, if new details are found, the case can be extended for another 20 working days.

If the penalty is less than AED 100,000, this committee’s decision is final. If the penalty is greater than AED 100,100 and the individual is dissatisfied with the final ruling, they have 20 working days from the date of notification to file a complaint with the federal court.

This process was created by the UAE to ensure that companies can operate in a fair and dynamic environment while also contributing to the economy. The UAE maintained its lead in the Middle East and Arab area in the World Bank’s Ease of Doing Business Ranking 2020, with the 16th place out of 190 countries. This is attributed to open structures and a strong economy.