VAT Penalty Reconsideration

A VAT penalty reconsideration can be granted only to VAT-registered businesses that can provide valid evidence for their non-compliance. Common reasons may include unexpected events, such as natural disasters or serious illnesses, that contributed to the inability to file or pay taxes on time. To understand these conditions and determine eligibility for reconsideration, businesses are encouraged to seek the expert guidance of leading tax consultants, such as FAR Consulting Middle East.

How to Submit a Reconsideration Request?

To apply, businesses must:

• Pay the assessed penalty in full;

• Login to the FTA portal and file a detailed online reconsideration form on the FTA portal.

• Include all necessary documents for serious reasons (e.g. medical report/ disaster report)

FAR Consulting Middle East is committed to assisting businesses to submit and accordingly comply with key requirements of the FTA. 

Steps from the FTA?

The FTA reviews each reconsideration request within 40 business days of the date it is submitted. This review may result in:

• Approval: The FTA can cancel the whole fine and return the part that has already been paid
• Rejection: – The FTA will reject the request and uphold the original transaction tax penalty.
• Partial Waiver: FTA may reduce the penalty, more if you have evidence.

You will be informed via email, and you can view this notification in the FTA e-services portal to monitor the status of your request.

How To File Appeal Against the FTA’s Decision: –

In the event that a business is not satisfied with the decision of the FTA on their Application for Reconsideration they can file an appeal with the Tax Disputes Resolution Committee (TDRC). The appeal must be made within 40 working days of the FTA issuing its decision. This is a third-party organization that reviews appeals and has the power to:

• Uphold the FTA’s decision.
• Modify the penalty amount.
• Cancel the penalty entirely.

FAR Consulting Middle East extends its full assistance in presenting a case before the TDRC where it ensures that all documentation and relevant requirements are furnished during the submission process.

Seek the Expert Services of FAR Consulting Middle East 

VAT penalties can be burdensome for businesses operating in the UAE. However, through VAT Penalty Reconsideration, companies have the opportunity to reduce or even eliminate these penalties by providing valid justifications for non-compliance. FAR Consulting Middle East offers expert guidance in managing the intricate reconsideration process, helping businesses comply with FTA regulations. Thus, contact us today and we shall be glad to assist you. 

Frequently Asked Questions

1. How can I check the penalties imposed by the FTA?
   You can view any penalties through my Payments tab on Emaratax.
2. How can businesses avoid VAT and Corporate Tax penalties?
   Ensuring timely filing of tax returns, accurate payment of tax liabilities, and maintaining comprehensive records in accordance with FTA rules are essential to avoiding penalties.
3. How can I contact the FTA for more information or assistance?
   You can contact the FTA via their official website for further assistance.

For any assistance on VAT Penalty Reconsideration, consult the experts at FAR Consulting Middle East to ensure that your business stays compliant with UAE tax laws while minimizing financial risks.