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VAT Reconsideration

Wrongly sanctioned with penalties? Misunderstood your position? You don’t agree with the Federal Tax Authority (FTA) decision? If yes, then Asad Abbas & Co. (Chartered Accountants) an independent member firm of PrimeGlobal can help you file a reconsideration request to review FTA’s decision.

Detailed on Title Four Objections in the Federal Law No. (7) of 2017 on Tax Procedures the procedures and steps to follow in the application for reconsideration. Clarifications user guides were also issued by the FTA to further clarify the application of the law. To cut this short and help you understand this clearly, we have summarized the long and detailed discussions and transformed it to the simplest terms possible.

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Any natural or legal person can apply to FTA to reconsider its decision within 20 business days from notification of the decision. The FTA requires the applicant to provide reasons for applying a reconsideration on its decision, including an analysis of the alternative treatment which the applicant considers that should have been applied to its case. The FTA will review the request for reconsideration and, if the application has fulfilled the requirements, the FTA will issue its justified decision within 20 business days from receipt of such application. This decision shall be relayed to the applicant within 5 business days from the date of its issuance. Most importantly, the FTA requires the application and its supporting documents to be written in Arabic language only. 

 

To give you a real life example, a VAT registered Company filed its VAT return for the period which resulted to a refund from the FTA. However, during the process of the submission, it has mistakenly used the incorrect number sign and ended up submitting a payable of VAT due instead of a receivable VAT refund. The Company was fined with penalties and interest resulting from the non-payment of the filed VAT due payable, in which to begin with, there is no actual VAT due payable. The Company, through our help, has appealed through the proper channels and took steps to the FTA to reverse and correct the error on the VAT return filed. The FTA has accepted the filed reconsideration and in a reasonable time has reversed the penalties and interests.

If you relate to the same scenario in the example above or completely something else and you believe you have complied to the law accordingly but was wrongly penalized, you can exercise your right to appeal and submit a VAT reconsideration to the FTA. We are here to assist you all through-out the process. There is no assurance or guarantee on every VAT reconsideration but it is always worth trying that doing nothing.

For consultation and inquiries on your VAT reconsideration, feel free to reach us! Our team of VAT professionals can help you analyze, prepare, submit and liaise your VAT Reconsideration submission along with the requirements to the FTA. Get in touch and learn more by visiting our website www.abbasaccounting.com or contact Augusto Dela Cruz (augusto.cruz@abbasaccounting.ae) at +971 55 389 1625.

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