UAE VAT Voluntary Disclosure

The Federal Tax Authority utilizes a computer system to sort 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 encourages all tax-registered entities to tell the authorities 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 are 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.

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 the tax that is due, our experts in UAE on VAT help you report the incorrect amounts. That is given to the FTA as well as the correct values. Both figures have to be presented to inform the local tax authority of discrepancies.

VAT Voluntary Disclosure Service in UAE

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Time limits for UAE VAT Voluntary Disclosure

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