UAE VAT Voluntary Disclosure
The Federal Tax Authority utilizes a computer system in sorting through huge amounts of data. Further, identifying mistakes from different sources like tax returns, banks, and other institutions. This is why the Federal Tax Authority in UAE or FTA encouraging all tax registered entities to tell the authority proactively when they realize that they’re not paying the correct amount of taxes. At Farahat & Co, we also help businesses and individuals make VAT return voluntary disclosure.
VAT Voluntary disclosure service in UAE
You may be wondering if it is worth it to make a UAE VAT voluntary disclosure. However, we are here to tell you that it most definitely is. Why? Making a VAT voluntary disclosure cultivates good standing with the tax authority. The FTA will charge less penalties. If the disclosures done voluntarily rather than the tax authority finding the mistakes themselves. More importantly, having your tax affairs updated and accurate will let you enjoy peace of mind – a valuable aspect as it lets you run your business smoothly.
Our team of regulated tax specialists in Dubai will guide you throughout the process. They can explain what is voluntary disclosure in VAT UAE and help you work out the tax that is due. Yes, this includes the years tax has to be paid. Our specialists that act as the advisers of our clients help them through every stage up until an agreement is made with the tax authority.
A UAE VAT voluntary disclosure that is done by our reliable team may be completed in one of several ways. Here's the general procedure of making a VAT voluntary disclosure in UAE:
- Our agents notifying the Federal Tax Authority of the intent of making a voluntary disclosure
- Receiving registration number and confirmation from the FTA
- Telling the FTA the issues or what exactly went wrong
- Reporting why omissions or mistakes were made
- Calculation of tax, penalties, and interests that are due
- FTA review or processing of the disclosure
- Reaching a complete, formal agreement between the taxpayer and the FTA
Our regulated tax agents in Dubai are often asked by the FTA to complete other forms that confirm the bank accounts of clients which they had access, including the business or individuals’ assets and liabilities. There would also be a certificate which has to be issued to a taxpayer stating that they have told the FTA everything there is to know which need to be brought up-to-date.
Time limits for UAE VAT Voluntary Disclosure
- If an error resulted in calculation of payable tax of the taxpayer being less than what required by more than AED 10,000, then the voluntary disclosure of error should done twenty business days from date when taxable person was able to uncover the error.
- Also If an error resulted in calculation of payable tax of the taxpayer being AED 10,000 or less, error shall be corrected in a tax period’s tax return wherein error was found before due date of tax return submission. If there’s no tax return in which the error may be corrected, Further, there is twenty days allowance for reporting of error starting from the date of being aware of such.
How our experts can help you
With their experience and expertise in handling VAT voluntary disclosures in UAE, our team can help you with the following:
- Review and submission of supporting documentation: a letter is also required by the FTA which should contain the background facts and detailed descriptions of all errors that were uncovered. The letter has to indicate reasons for the VAT voluntary disclosure as well as the errors that were disclosed. This letter, which also reviewed and submitted by our team, will be what will assist the tax authority in acknowledging the request.
- Calculation of the tax due: apart from calculating tax that is due, our experts in UAE on VAT help you report the incorrect amounts. That given to the FTA as well as the correct values. Both figures have to presented in order to inform the local tax authority on discrepancies.
- Settlement of penalties: payments will also be made by our experts so you won’t have to worry about dealing with the FTA (if necessary). Take note: with a VAT voluntary disclosure, there may be penalties from the error. This is less compared to the penalties that will be imposed on taxpayers if the FTA found the mistakes themselves as mentioned earlier. For penalty settlement, we can also discuss with you your options and help you consider the best way to go about it.
We know you have a lot of questions regarding UAE VAT voluntary disclosure. Call us today! Our team is available to address all your queries and assist you as you settle your dues and cultivate a good standing with the authorities.