VAT is the value-added tax. It is the amount added on each stage of the production processes from its manufacturing to sale. It is the value that the consumer pays while buying the product. Each country has its own rules related to the VAT.

Usually, the Federal tax authority is liable for taking managing charges and collecting the fines as well as taxes. The Authority decides the tax, and in case if the business community disagree, then they can apply for the VAT reconsideration.

In that situation, the Authority has the right to review the decision and provide relief to the taxpayers. The claimant has to fill the VAT Reconsideration form so that their claim can be checked and benefits.

Things Required For Vat Reconsideration Form

To apply for the Vat reconsideration, the applicant must provide the following information; otherwise, it will not be considered by the Authority.

  • Certificate of Vat registration
  • National ID card
  • Passport copy of the person to whom the business number is issued
  • Registered contact number
  • Memorandum of association that must be registered. It is important for the verification of the applicant.
  • The date on which penalty was issued
  • Amount of penalty
  • Proper and authentic summary of the case to justify the reconsideration.

Before applying, the applicant must be assured that he has provided all the required information. One must read the rules again. It is important to avoid rejection and get justice for the claim made for vat reconsideration.

WE HELP YOU FOCUS

CHECKING CASE STUDIES

Checking your case according to U.A.E's executed VAT Law.

VAT REGISTRATION

Registering your setup for VAT.

VAT GUIDELINES AND CONTROLS

Keeping up your correct records according to VAT guidelines and controls.

SETTLING VAT ISSUES

Settling VAT related payment issues at ideal time.

VAT RETURNS

Filing and maintaining VAT returns.

RESOLVING DISPUTED ISSUES

Resolved disputed issues identified with VAT.

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Method To Apply For Reconsideration

The person who gets the penalties and extra charges he is liable to apply to the Federal tax authority or department that holds this system in the country. It is important to apply within the days limit defined in the law. The person can apply within 20 working days from the receipt of the fine or penalty in UAE.

It is the person’s right that if he is not satisfied with the decision made by an authority. If he got penalties, then he can file for the Vat penalty reconsiderations.  FTA must review and provide justice to the applicant.

Procedure

To apply for the Vat interest reconsideration, the procedure is not difficult. No need to visit the office and wait on queues to apply the decision made by the Authority. Rather, one can simply visit the website, pick the application form, fill it, and submit it.

One should be assured about the statements written in an application. Moreover, provide the document, if any, required. Plus, one more thing, the language must be accruing to the Terms of Services, in case of UAE Vat reconsideration, the required application in Arabic only.

One should be careful and write the application according to the Authority’s requirement to get acceptance. Otherwise, the Authority is liable tor eject the application.

Authority's Procedure

When the FTA receives the application, it reviews it thoroughly and inspects the background to make the decision again. It thoroughly checks the facts of the case. It issues a decision within the 20 working days after receiving the application. Moreover, the applicant is informed within a weak or five business days after making a decision.

After reviewing the application, the Authority removes the penalties or takes the stand of retaining penalties. It all depends on the case, its background, and business type

Things To Consider For Applying For Vat Reconsiderations

The applicant has to follow the laws decided by the Authority to get a decision in his favor. He has to follow the right procedure for Vat fines reconsiderations.

The person has to explain all the reasons for applications. There must nothing be fake, and everything must be clearly defined so that the Authority can reach the correct decision that can be in favor of the applicant.

It is important to apply within 20 working days, or as defined in law; otherwise, the application will not be considered.

The Authority makes the decision only if reasons are justified and application is according to the requirements. After issuing the decision, it informs the applicants about the changes made in the case.

Type Of VAT Penalties

If the Authority sees the tax evasion from the taxable person, then the Authority imposes the penalties according to the law.

The Authority issues the penalty for non-compliance and breaches the provisions mentioned in the Decree-law or federal law. All penalties are clear cut written in Tax procedures. So applicants can read procedures and rules before applying for the reconsideration to prevent themselves from the inconvenience.

The person is liable to a penalty if he is involved in a tax invasion that may be of any kind. Moreover, if he owns the lower tax with illegal methods, he will get a penalty, and he has to pay it.

Other Reasons

Few other reasons due to which the business or individuals get the Vat penalties are

  • Deregistration after the due date has passed
  • Late registration for the value-added tax
  • Fail to return the Vat file before the deadline
  • Incorrection information
  • Wrong documents
  • No proper filing of file
  • Having no proper records of the business.

What To Do If The Authority Decision Is Not Satisfactory?

Sometimes it happens the applicants do not get a satisfactory result, and he wants to apply again. In that situation, one can apply to another department that is Tax dispute resolution. The applicant applies within 20 days or the limit described in the law. The person can rase objection only if penalties are issued by the FTA only. In case if previously, FTA has not issued penalties, or the authority has not settled the matter, one is not liable to apply for further reconsideration.

The committee reviews the penalty again, search for all the facts and then make the decisions. It informs the applicant either he can get a favor or not.

To apply for Vat reconsideration is a not difficult process, but following the law is important. To avoid hurdles and embarrassing situations, it is good to claim for the right thing; otherwise, one must bear strict consequences stated in the law.