VAT Appeal Process in UAE 2024: A Step-by-Step Guide

UAE has introduced a Value Added Tax also called VAT in the financial year 2018 and various changes have been incorporated to the system of taxation within the nation. However, complain and disagreement are inevitable at the same time even with the great strains that FTA has taken to ease the compliance on the VAT. Currently, there is the possibility for the taxpayers to appeal to the FTA judgments or VAT assessments in specific circumstances. This article offers a thorough explanation of the legal process for VAT appeals UAE, incorporating the most recent changes and stressing the value of experienced advice from VAT registration specialists like vat registration UAE .

Comprehending VAT Appeals and VAT appeals process steps UAE

The detailed request to have a particular FTA decision on a VAT assessment, penalty, or any related subject reconsidered is referred to as VAT appeal in the UAE. The principle of the appeals procedure is an opportunity for a taxpayer to dispute the FTA’s decision and seek justice if he feels there has been a discrepancy in the tax calculations.

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Motives of filing the VAT appeal or VAT reconsideration in the UAE

A taxpayer may challenge a VAT ruling for a number of reasons, such as:

• VAT amounts calculated incorrectly: Inaccuracies in the VAT amounts computation may give rise to an appeal.
• Inaccurate interpretation of VAT legislation: Legal advice will show that it is possible to challenge the conduct of the FTA whether it is a misinterpretation, or improper implementation of the provisions of the VAT Act.
• Inaccurate categorization of goods or services: It is important to note that there is a system of appeal where there is a dispute on the classification of goods or any service chargeable to VAT.
• Unjustified fines or interest: An individual, firm or Company under a tax law that has been charged by the FTA with fines and or interest that they believe are exorbitant or unjustified can appeal against it.
• Mistakes made by the FTA in the course of the VAT assessment or audit procedure may give rise to an appeal.

 

Required documents for VAT appeals process 2024:

The following is intended to assist you in gathering the necessary materials so that you can accurately complete the application form:

• Documentation proving the legal and factual foundations for your request;
• Receipt of tax advice that is pertinent to your request for reconsideration

The largest file that can be sent in any single message is 5MB and the generally accepted file formats are word, excel, PDF, jpg, PNG, and JPEG. 

Steps for VAT Appeals Process UAE 2024

It is possible to appeal disagreements regarding VAT assessments with the Federal Tax Authority (FTA). The procedure entails:

• Application for Reconsideration: After obtaining the contested judgment, you have 20 business days to file a thorough application to the FTA.
• Committee on Tax Disputes Resolution (TRDC): You have the right to appeal to the TRDC if the FTA’s review is not favorable. This committee examines the case and is impartial.
• Federal Judgement As a last resort, an appeal to the federal court is available for disputes over AED 100,000.

Compiling thorough supporting documentation and consulting an expert are essential to bolstering your plea.

The frequently asked questions about the UAE VAT Appeals Procedures

Q1. What is the estimated time for the FTA to respond once appeals for VAT in the UAE have been submitted is not very clear?

In 45 business days, you may receive a response back from the FTA if your reconsideration application is complete when it was received by them.

Q2. Can I save the application as a draft to be updated later? If yes, for how long?

Yes, you have an option to abandon the particular application halfway and show the progress you already made, however it is, as a draft next time when you will sit down and work on it. However, U.S. Immigration will decline your application if you fail to submit your application within 60 calendar days of creating the application. Reminders will be sent to the registered email/verified mobile that will in turn remind you to continue with your application.

Q3. Who can submit the reconsideration application to FTA? 

Generally, the person seeking a reconsideration should submit the reconsideration application to the FTA. However, submissions will also be accepted from:

• Your appointed Tax Agent; or
• Your appointed Legal Representative.

In case of Tax Group, it must be submitted by the Representative Member of the Tax Group, if the company filing the return belongs to a Tax Group. However, it is as well important to understand that Tax Advisors who are not registered Tax Agents are not allowed to make any reconsideration request for another person.

Q3. What is the response time for the reconsideration application by the FTA?

The FTA takes around 45 buisness days to reply to your reconsideration request.

Q4. Can I raise a reconsideration and waiver of penalty request simultaneously with the FTA?

Indeed. With FTA, you can simultaneously request a waiver of a penalty and a review.

Q5 Is it possible for me to contest a reconsideration committee decision? On whose behalf should someone submit a disagreement against a review committee decision?

A decision rendered by the Tax Dispute Resolution Committee (TDRC) reconsideration committee of the Department of Justice may be appealed.

Important Things to Note for VAT Appeals Process UAE 2024

• Time Restrictions: It’s important to follow the stringent deadlines for submitting VAT appeals. The right to appeal may be lost if deadlines are missed.

• Documentation: Accurate and thorough documentation is necessary to ensure the success of an appeal. All pertinent bills, communications, and records should be gathered by taxpayers.
• Professional Support: Because of the intricacies of VAT legislation and the appeals procedure, consulting with professionals in VAT registration, such as VAT registration UAE, can greatly increase the likelihood of a successful resolution.

VAT registration UAE has an expertise in smooth and easy legal procedures for VAT Appeals UAE 2024

It can be very difficult to navigate the complex VAT appeals process in the UAE. Here’s where UAE VAT registration comes into play. They expedite the entire procedure because they have a solid track record and in-depth understanding of the tax environment in the UAE. Their experience guarantees a seamless process, from comprehending the grounds for appeal to creating strong documents and advocating on your behalf before the FTA. Their committed staff keeps you updated at every stage and offers individualized support. Don’t allow VAT disagreements to hurt your company. As you concentrate on expansion, let VAT registration UAE take care of the details.