Being aware about the federal laws of the UAE can benefit all businesses and citizens who can shield themselves from paying high penalties prescribed by the regulatory bodies. In the UAE, the FTA (Federal Tax Authority) is the regulatory body considering tax and VAT laws. This indicates that any decision furnished by the said authority is deemed to be final and binding.

Nevertheless, there might be instances when the business entity, company, or the individual do not share the feeling of satisfaction with the specified decision of FTA. So, in that case, what can be the successive steps on behalf of the applicant? Instead of blindly following the decision or fulfilling the penalties prescribed by FTA over VAT laws, suitable lawful measures can be taken, i.e., by filing VAT re-consideration form.

Outline of VAT re-consideration process

FTA is open to reassess its decision considering VAT or any other taxation in case you are not satisfied with the same. You have the right to opt to ‘review the decision’.

To make use of this power, you are required to pursue a series of steps.

  • First, the applicant is required to request the Federal Tax Authority by completing online form which is in Arabic language ONLY to re-examine the decision or penalty imposed; following –
    • The review request must be generated within 20 days from which FTA has given its verdict.
    • FTA should process the review request and respond within 20 days from which the applicant has initiated the review request.
    • The applicant will be notified about the receipt of the notification by FTA within five working/business days.

Important things to consider while requesting for VAT re-consideration

  • The VAT re-consideration form should be filed for legitimate claims having proper supportive documents.
  • If there are any penalties, or unpaid taxes towards FTA, then it is suggested to fulfil them prior submitting the reconsideration form.

Concluding Statement – 

If you are going through such state of affairs where your taxation rights have been breached, or you are erroneously penalized under VAT laws, then step forward by taking advantage of VAT re-consideration. The MARS Group’s legal and VAT experts can interpret federal laws of the UAE and help business entities and legal citizens to appeal to the FTA. MARS Group can help in understanding legal terminology and provide an upper hand to the citizens and business entities and save from breaching of rights.

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