VAT Appeals and Dispute Resolution in UAE
Registered Tax Agent Regulated by the FTA (Federal Tax Authority)
A VAT dispute usually begins when a business does not agree with an FTA decision, penalty, or assessment and needs to take the matter further after the initial review stage.
This often happens when a reconsideration request is rejected, when the penalty remains unresolved, or when the business believes the VAT treatment or tax position has been applied incorrectly.
VAT disputes need careful handling because they involve strict procedures, supporting records, technical arguments, and formal submissions before the relevant authorities.
At Farahat & Co., we help businesses across the UAE review the case properly, prepare the required documents, and move the matter forward with a clear and structured approach.
Contact Farahat & Co. today if you need professional support with a VAT dispute or appeal in the UAE.
Discuss Your VAT Dispute
What Is a VAT Dispute in the UAE?
A VAT dispute in the UAE arises when a business challenges an FTA decision after the reconsideration stage has been completed and the matter remains unresolved. This usually happens where the business disagrees with a tax assessment, administrative penalty, or other VAT-related decision and needs to take the matter further through the formal dispute process.
In the UAE, a reconsideration request is the first formal challenge to an FTA decision. If the outcome is not satisfactory, the matter may then be escalated to the Tax Disputes Resolution Committee, which operates under the Ministry of Justice.
In simple terms, VAT reconsideration is the first review stage, while a VAT dispute is the next stage of appeal when the issue is not resolved at the FTA level.
When Do You Need VAT Dispute Services?
Businesses usually need VAT dispute services when:
- The reconsideration request has been rejected in whole or in part
- The FTA has issued a high-value penalty or assessment
- The business disagrees with the VAT treatment applied by the FTA
- The case involves complex calculations, records, or documentation issues
- The matter carries a risk of formal escalation before the TDRC or the courts
- The business needs Arabic submissions and properly organized supporting evidence
This stage is especially important where the financial exposure is material or where the outcome could affect future compliance, tax cash flow, or management decisions.
VAT Dispute Process in UAE – Step by Step
Step 1: Reconsideration Request
In most cases, a VAT dispute begins with a reconsideration request against the relevant tax decision, which must generally be submitted within 40 business days.
As VAT disputes involve strict deadlines, technical documents, and formal procedures, businesses should prepare the case carefully and act without delay.
After submission, the authority may take up to 45 business days to review the application and issue its decision.
Step 2: Objection Before the Tax Disputes Resolution Committee
If the matter is not resolved at the reconsideration stage, an objection can be filed before the Department of Tax Dispute Resolution Committees at the Ministry of Justice through the online system.
The application must be submitted using the prescribed form along with all required documents and contact details.
Payment of the disputed tax and administrative penalties is generally required before proceeding to this stage.
The objection file should be complete, well-organized, and aligned with the legal grounds presented.
Step 3: Committee Review and Decision
The Committee reviews the objection and allows both parties to respond to each other’s arguments.
The FTA states that the Committee typically issues its decision within 20 business days, with a possible extension of another 20 business days where justified.
At this stage, the strength of documentation, supporting records, and technical arguments is critical.
Step 4: Court Appeal, If Required
Both the taxpayer and the FTA may appeal the TDRC decision before the competent courts, depending on the case and applicable legal conditions.
Court escalation should be approached carefully, especially in high-value, complex, or legally sensitive disputes.
Our VAT Dispute Services Include
At Farahat and Co., our VAT dispute services may include:
- Initial case review and dispute viability assessment
- Review of the FTA decision, penalty notice, or assessment
- Review of the reconsideration outcome and procedural position
- Analysis of VAT returns, records, reconciliations, and supporting documents
- Preparation of dispute strategy and document checklist
- Drafting and organizing the objection file
- Support with Arabic documentation requirements and coordination
- Representation support before the Tax Disputes Resolution Committee
- Liaison and follow-up on procedural requirements
- Support with court escalation where required
Documents Commonly Required for a VAT Dispute
The exact documents depend on the case, but commonly required documents may include:
- The FTA decision, assessment, or penalty notice
- The reconsideration request and the FTA’s response
- VAT returns and related tax filings
- Accounting records and reconciliations
- Invoices, contracts, and transaction support
- Correspondence relevant to the disputed issue
- Schedules, calculations, and explanatory notes
- Legal authorization or representation documents, where required
A poorly documented dispute is much harder to defend. The strength of the file often matters as much as the legal argument.
Common VAT Dispute Cases We Handle
Common matters that may require VAT dispute support include:
- Administrative penalty disputes
- Late filing or late payment penalty cases
- Disagreements over input VAT recovery
- Disputes about output VAT treatment
- VAT audit findings and assessment challenges
- Documentation-based disputes
- Tax period or reconciliation issues
- Serious allegations involving misstatement or evasion-related findings, where the matter requires careful legal and technical handling
Timeline for VAT Disputes in the UAE
VAT disputes in the UAE follow a structured process with defined timelines at each stage. A reconsideration request must be submitted within 40 business days from the date of notification of the original tax decision. Once submitted, the Federal Tax Authority may take up to 45 business days to review the completed application and issue its response.
If the reconsideration outcome is not satisfactory, an objection may be filed before the Tax Disputes Resolution Committee within 40 business days from the date of notification of the reconsideration decision. The Committee generally issues its decision within 20 business days, and this period may be extended by another 20 business days where required.
If the dispute amount exceeds AED 100,000, the TDRC decision may be appealed before the competent court within 40 business days from the date of notification of the Committee’s decision. Because VAT disputes involve strict deadlines and procedural requirements, businesses should act promptly and prepare the case carefully at each stage.
VAT Dispute vs VAT Reconsideration
| Aspect | VAT Reconsideration | VAT Dispute |
| Authority | Federal Tax Authority | Tax Disputes Resolution Committee |
| Stage | First formal challenge | Escalation after reconsideration |
| Nature | Review by FTA | Independent objection stage |
| Complexity | Usually lower | Usually higher |
| Documentation | Important | Critical |
| Language and procedure | Formal | More formal and often more demanding |
Why Choose Farahat and Co. for VAT Disputes
VAT disputes are not only about filling out forms. They require careful reading of the FTA decision, strong control over documents, clear presentation of the tax position, and an understanding of how the matter may progress if it is not resolved early.
At Farahat and Co., we support VAT dispute matters with a practical, structured approach.
Our team works across tax, accounting, and supporting records so the objection is not treated as a standalone filing exercise.
We focus on accuracy, completeness, and realistic case handling from the start.
VAT Disputes FAQs
Can I file a VAT dispute without first filing a reconsideration request?
In most cases, the reconsideration stage must come first. According to the FTA’s objection process, a reconsideration request is required before the matter can proceed to the Tax Disputes Resolution Committee (TDRC).
How long does a VAT dispute take in the UAE?
The duration depends on the stage and complexity of the case.
The FTA indicates that reconsideration may take up to 45 business days. The TDRC typically issues decisions within 20 business days, which may be extended by another 20 business days if necessary.
What happens if the dispute is not resolved in my favor?
If the dispute is not resolved in your favor, the matter may be escalated to the competent courts, subject to applicable legal procedures and deadlines.
Can VAT penalties be reduced or cancelled?
This depends on the case details, legal grounds, quality of supporting evidence, and the procedural route taken.
A proper case review is essential before setting expectations regarding penalty reduction or cancellation.
Do I need a tax agent to file a VAT dispute?
Appointing a tax agent is not mandatory for submitting a reconsideration request, as per the FTA’s guidance.
However, many businesses choose professional assistance, especially for high-value, complex, or legally sensitive disputes.